3 Signs You're Saving TOO MUCH For Retirement!
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
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I'm thinking of putting some cash in stocks, I was at Salt Shack and I overheard some friends saying it's ripe enough, but Is this a good time to buy stocks? I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
@genesisduma4500 How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
@genesisduma4500 This is useful information; I copied her full name and pasted it into my browser; her website popped up immediately and her qualifications are excellent; thanks for sharing.
"Yesterday is history, tomorrow is a mystery, but today is a gift. That is why it's called the present." -Master Oogway Kung Fu Panda 1 😂
Came here to say this lol
One of the best movies ever made as far as I'm concerned, master Oogway is incredibly wise.
We just watched this yesterday with our kids
yep. Master Oogway Kung Fu Panda.
Don’t forget my favorite saying from him. One tends to meet their destiny in their path to avoid it
Re sacrificing, my great-grandma had eight siblings. One sister said, “Don’t save your good jewelry (i.e. wear It only for special occasions) because when you die your husband’s new wife will have no problem wearing it.”
I just turned 25 and I'm not gonna lie, you hit the 3 signs on the head. I'm experiencing all 3 of these right now and man I feel like I'm having an existential moment right now. I've been saving A LOT for my age and I keep on thinking, it'll pay off in the future. And because of that, my relationships struggle because I become a tightwad. And I realized that the lines are getting blurred about a month ago. Thank you so much for helping me realize this and I am definitely going to be sitting down and going over everything.
I totally agree. I just turned 25 too. I save so much of my money and am always feeling like I’m not saving enough. I have so many spreadsheets for everything and I’m always calculating things. I will definitely take a look at things again too.
Dude no stop! Save as much as you can ivest as much as you can then give as much as you can
Ya...buy a Porsche!!!! Get a jet ski!!! Do fun shit! After kids.....well, you'll see. Get ur fun shit now while you're young...you'll have it later before you're old
Fuck relationships bro keep on going saving ur money that’s what I’m doing I’m 26 saving half of my monthly income planning to retire early around 45 or 50 I won’t be able to do that if I get into a relationship
@@Georgemorales5559 that sounds horrible, I’m all game for saving but relationships (includes friends and family) are the bedrock of any happy life.
You could live a very comfortable retirement with $1000000. That's $50,000 a year for 20 years. I live a great life now on only 30,000 a year. Of course that doesn't include going on vacations for weeks and weeks , 2 purchased rental property and RM 016
wow . I plan to retire in Feb 2023 at 57 after 36 years in Telecom as a sales engineer. My wife will retire in Jan 2023 and she' s loving life! walking away from a good income stream and building the nest egg to living from the nest egg is a scary proposition. where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
@@elizabethyork590 where would you rather be if you have an option. Personally I’m always invested aside from a small emergency fund. Financial-market for me seem the only way forward with my long time horizon (accrued over $200k in gains since 2020 )but if you don’t have that fortune of time it’s a tough market out there almost nowhere feels safe!
@@kansasmile I began with a fiduciary portfolio-advisor by name KATHERINE DUFFY BURKE . She’s verifiable and works ethics is in accordance with US invstment act of 1940. Her approach is transparent allowing total ownership and control over my portfolio with fees very reasonable in comparison with my invstment-income . Also, She covers things like investment, insurance, making sure retirement is well funded, Go over tax advantages , ways to have a volatility buffer for investment risk. many things like that
@@fortunino Interesting, I curiously searched her full name on my web browser and I came across her site thankfully. She looks impeccable.
30k a year sounds awful
I'm 25. Paid off all my student loans. Have 60k saved up for retirement already. Goal is to have 100k and a solid downpayment for a house by 30 God-Willing.
God helps them who help themselves. Your going to be very comfortable in life if you stay to the program.
Good for you! I had a negative 40k net worth when I was 29, and I finally started getting serious with my finances in August 2018. I am now 32, much more financially literate, and completely turned my net worth around to 95k today. Use your youth to your advantage, you’re doing great!
@@BillyBob-rr8se That's awesome! Stay the course and it will only get better. I was at around negative 20k at age 29. I crossed the $1 million mark at 43, not including home equity.
Congrats to you all!
@@foomanchu5480 How did you do it?
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
Concentrate on two main objectives. First, keep yourself safe by knowing when to dive into the market in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a professional for advice.
Who's putting you under pressure? That's more than enough. Learn to live below your means.
I am an old retired geezer now. I am autistic and have severe disabilities. I was very much blessed having gotten a really good job at age 41 that ended up paying $10,000 a month. I lived on disability, SSI and food stamps before that. Needs programs don't let you save or invest. So when I got my high paying job I threw myself into saving and investing in the market. From having nothing at age 41 I've been able to build a net worth of close to $600,000 at retirement. I have a stable retirement income of $56K a year. I am a single bloke, debt free, no mortgage nothing. I had to save like a miser for retirement to make up for all the lost income due to my severe early life disabilities. Sometimes saving \ investing like a mad man makes total sense.
Is that income net or gross? And does it include other things like Social Security because I’m not sure how you could get that much income solely from that amount of investment.
@@Wisepati Four financial pillars bring me to my retirement amount. I worked as an engineer which paid good money. I invested wisely over the years.
1. My Pension.
2. My Social Security
3. My 401K
4. My Own Investments over my working years.
The amount is gross.
I salute you BROTHER! Much respect.
@@Wisepati It's pensions, 401K, Social Security, investments, bonds and more. I tried to put a chicken in every investment pot. I did not know which investments would make money so I invested a little in everything every week. The high finance term for that is diversification. Also DRIP's. Dividend Reinvestment Programs. Do these things over 20+ years my situation is easy to replicate on a 6 figure worklife income.
Best line on this show, “don’t want to be the richest man in the grave yard” lol. So true.
Thanks~~~~~
You also do not want to be old and eating cat food and living in a cardboard box out behind the grave yard. 😀
Its about balance.
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.
Read 'The Simple Path to Wealth' by JL Collins. His approach best matches mine as far as investments.
I just want to say thanks for your show. I’ve always been good with my money and don’t necessarily need your advice, but listening to your episodes encourages me that I’m doing the right things and I shouldn’t feel bad that I can enjoy life decades before I retire.
It’s nice to have a community here.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Diversifying investments is, in my opinion, the safest option. By spreading their assets across asset types like bonds, real estate, and foreign equities, they can lessen the impact of a market collapse. Getting professional assistance is crucial.
Yes, a lot of people downplay the significance of advisors until their own feelings consume them. I sought for licensed consultants a few summers ago, and I located someone with the greatest qualifications, because I needed a major boost to keep my firm going after my drawn-out divorce. She helped me raise my reserve from $275k to $850k ($850k considering inflation).
Laurelyn Gross Pohlmeier is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Investors should focus on index funds so they don’t end up like you
@@argenisperez7810these are bots, not real people. Just a scam.
This was a really good episode for me as it hit home. The wife and I are in our late 30s with a house and 2 kids. We have a good amount in retirement at the moment and will have approx $2million assuming a modest rate of return. We still invest the max into a Roth every year but I often struggle to spend money on extra things for myself. It’s good to put things into perspective to give yourself permission to spend if you have “checked all the boxes” in saving for retirement which we have done.
Congrats. I'm not married but if I can offer you some unsolicited advice.
First buy term policy for any working adults. Long Term Disability Insurance for the bread winner with premium return + inflation rider.
My health changed suddenly and I'm a little older than you. 2 mil is a great amount but you will be penalized for touching it. You need to protect yourself especially when we see uncertain times ahead of us.
You probably have this but just in case create a Trust.
Around the 30:00 mark “eating healthy is expensive” to which I reply: eating “cheaply” is far less expensive immediately, but you pay for it later with medical bills and poor health, possibly disability and early death. Doesn’t do any good for you to save money for retirement and not be able to enjoy it because you’re too sick and unhealthy or dead.
Buying healthy groceries and cooking them yourself isn't actually much more expensive than fast food, especially if you buy in bulk and save leftovers for later. It just takes a bit of effort.
@@elmateo77 You and @Strict NonConformist are both equally right. I appreciate your two's comments to validate and reinforce fueling my athletic lifestyle.
As a lifestyle medicine physician I preach this daily! Such truth! My retirement plan has a hefty line item for preventative care. I still think it’ll be MUCH less than treatment. The average diabetic spends 10s of thousands a year out of pocket. Pay now or pay more later, imho.
It really depends on how you define eating healthy. There are a lot of 'healthy' superfoods that are very expensive and fancy fruits and vegetables can become expensive too. However, many vegetables like red cabbage are pretty healthy and cheap. Meat and cheese are also more expensive foods and not the healthiest in excess, so eating less of them and swapping in lentils, beans and wholegrain products can save a lot.
When I was a college student, I was able to eat fresh mostly healthy food for a lot less than my friends that ate the cheap food but then I had a family that taught me to cook.
@@SGast there are a number of things that should be outright avoided, at least minimized, such as seed oils and added sugars, but going on eating “superfoods” is a truly bad imbalanced strategy, because the truth of the matter is it’s more important to have the right overall balance of macro and micronutrients in the diet in the right proportions. Why are seed oils bad? Other than how processed they are, and possibly how they can go rancid, along with the theme of balance, they throw off our omega 6/omega-3 ratios horribly, creating lots of inflammation, and increasing insulin resistance, heart disease, etc.
Sadly, most doctors don’t have meaningful nutrition education, and a lot that do, have crap taught to them, all bad dogma, like saturated fats being bad for you: as long as they’re natural saturated fats from animals fed their natural diets, they’re very good for you, as they’ll have other things (again, the overall theme of balance) that help prevent imbalances (look up vitamin k2 and how animals we eat get it, if eating natural-for-them diets). We’ve been fed lies for a very long time, and the health of the population has been suffering the effects for a long time, only getting worse. You’re far better off eating butter than margarine, certainly if you don’t have a dairy allergy, in which case, well, avoid margarine, or anything at all hydrogenated. Grass-fed butter is the better butter choice if you have it available, for the k2.
I'm not sure exactly which category I fall into. I have 300 thousand in my tsp but I still rent an apartment. I'm 53 years old and single with no kids I started getting serious about saving in my 40's and instead of thinking smart and putting down money on a house I decided to put it all into contributing the max to my retirement fund. And I wasn't even smart enough put it in Roth. It's all traditional. I'm not complaining. I know I have it a lot better than so many others. I just wish that The Money Guy Sow was around when I was in my 20s.
Yeah I was saving so much for retirement that I had to get a second job just to pay my mortgage! I eventually realized that it wasn’t healthy for a 24-year-old with seasonal depression to work 10-11 hours a day and have no social life, so I got a roommate and stopped working one of my jobs. Money is still tight, but I lowered my savings rate from 25% to 15% and maybe this is just because the spring came, but I’m so much happier now!
15% is good. Don't let anyone tell you otherwise. 25 is great. You will have time , don't hurry too fast or you might slip
I think it really depends on what you're saving and investing money for. In my case, I love my work and will do so as long as there's work to be done and I'm able to perform it. There are others in my family who aren't so fortunate. I'm saving for them and their children. I'll liver modestly and when it's my time to go their kids and grandkids will be well-off. I'm doing this to alter my family tree not so I can go on an unending vacation when I'm 50.
Great video. I'm 23 with ~90k of student loans left, but I'm paying off ~5k/month now and on track to pay them off by the end of next year. After that, it's max out 401k/ROTH and investment time 😎
Great plan man!
Or, if your student loan rates are low & you're in a low tax bracket; contribute $500 to a Roth IRA per month & $1,625 to your 401K per month, and pay $2,875 towards your loans. Stocks have provided a 12% return since I started investing in 1983. A 12% return and the tax benefits of a Roth & 401Ks, are unbeatable.
@@larryjones9773 you are smocking crack! 12% every year since 1983?! Wow! What a lie!!!
@@larryjones9773 currently meeting employer matches for 401k and ROTH in addition to the loan payments. I'm unfortunately in a higher tax bracket and the higher interest loans are 6-6.5%. If I can get them all paid off by the end of next year, I think I'll be able start investing at least 40-50% of my income by 25.
@@BryceCorbitt I'm 60. The $ I invested in my 20s were my best investments ever, simply due to 'time in market'. Every decade, after the 20s, total returns are progressively worse. Your 6% loan rates are still lower than stock returns. Congratulations, it sounds like you've got a great start. p.s. School loans are 'good debt'.
Holy crap, you both are talking to ME!!! This is a great timed video for me. I am guilty of probably saving too much for retirement. I struggle right now turning it off though and you are opening my eyes.
I love that you guys get into the details and have lots of examples. There are so many personal finance TH-cam channels that just talk about surface-level or common sense things. But y’all are so detailed and it’s great - thank you!
Thanks Lauren - please tell your friends- we are so close to 200k subscribers 👍
1 you are living for the future
2 your relationships are stressed
3 your needs and wants become blurred
I’m in my mid 30s and single. Last year I maxed out my 401K and Roth IRA but was struggling to save a significant amount for a downpayment on a house. This year I significantly scaled back my retirement contributions eliminating IRA contributions and significantly scaling back 401K contributions. After this year I’m going to find a happy medium where I’m contributing a little more to retirement but not necessarily maxing everything out and saving a little less liquid funds while I leisurely shop for a house
im on the other side of the boat. mid 30s ans single also. i saved for a house telling myself i need every $$ now but its been 5 years since purchasing. and only signed up for a 401k this week.
a happy medium is best but you sound like youre in great shap3 either way
33 and bought my house at 22. Now I’m focused on reducing debt so I can start maxing out savings for retirement and increase my emergency fund.
I hope the house prices goes down when you decide to buy so you can get a great deal
Bought my firat house in the mid 30s. I borrowed against the 401k and paid off the loan in the first year of home ownership. Just something to consider.
I was against investing and saving because I didn’t want something to happen and I don’t get to enjoy my hard earned money. At 25 I finally saw people who lived like me until their 40-50 and regretted it. So I started investing and saving every $ I could. I recently realized I’m not having any joy, trying to be the most frugal. This video was perfect timing
It’s all about mindset and balance
Focusing on retirement savings when you're young will pay off handsomely when you're older (see their wealth multiplier document). I think if you've saved a good amount already, then maybe scale it back a bit and put it on autopilot a bit. E.g. set your retirement plans to be 10% out of your paycheck automatically, then you don't need to worry about retirement for a while.
Another thing is to decide on some ratios of building for the future and also enjoying life now, e.g. if you make sure you save/invest the same amount you spend on enjoying life. Then you know you're not missing out on life bit you're also not blowing it.
But you could put 10% and 15% into each of those, just work out what works.
Another thing to do is take a look at what you are spending on and make sure that everything is adding value to your life. It's amazing how much can be frittered away on stuff you don't really enjoy or appreciate. It's especially apparent when you take a look at the last year's expenses and see how much you spent on things you don't actually remember (I download my transactions and use a pivot table in excel to group them).
Writing down your goals and values, and trying things, is so important to give you perspective on what's really important to you
Good input! But I also want to save for a house so even if I pause on the retirement savings. I’ll be saving for s house. And the 10% to spend on my self is key!
@@bigdaddygucciabg836 spending 10% on yourself sounds good. As long as you are feeding all aspects of yourself and life at some level, otherwise you might find yourself resisting your own discipline.
I have found that I can sustain effort a lot longer if I am enjoying life in some way. Depends on your stamina for depriving yourself of enjoyment - easy to do for a short while not so much for longer. It can end up being like binge eating or dieting, where you focus for a long time but then something in you rebels against that at some point and I think it really averages out to be about the same as if you had a more balanced approach, so it seems sensible to work out what you can sustain over the long haul.
Saved this video as figured I will need to listen to this from time to time. A growing urge to know that I could FIRE even earlier, occasionally fuelled by work frustrations, nudges my tendency to keep upping my savings even when I can comfortably “live it up” a bit. This video helps puts things in perspective. Thank you
Looking forward to hearing what you’re going to share!
My first few jobs we were always trying to make ends meet. At some point we found that happy place where our income met our needs and reasonable wants and there after we put our pay increases into the brokerage account. All the time we were getting employer match (Total 10% 401K) and trying to save where we could. We were about at age 35 where we crossed over the hurdle in pay. We never tried to live 'high on the hog' but we found that we need to splurge every once in a while. 182K subscribers now. Last year you were fighting to get 100K. Congrats!
I needed to hear this haha. I'm maxing my 401k, found out about HSA and going to fund it, and wanting to pay off my 15yr mortgage asap. I usually won't spend any money on anything other than these goals or any money on the girlfriend. Time to budget a bit each month for living in the now!
I'm on your same path. I just don't like debt. My wife is good about spending money and making time for fun.
What is the interest rate on that mortgage though? I'm actively not going to pay mine off early because any extra money invested is so much more powerful. My house is appreciating and equity is growing quite quickly even at the minimum payment.
Take it from me, treat your lady and yourself if you are on track for your retirement goals.
We have been consistently contributing over $100k towards retirement for the past 3 years. We paid our $400k house under 5 years. We achieved this by saving my wife's salary since we got married. We travel a lot by travel by applying for 4 credit cards per year. The only area we may have deferred gratification is cars. We all should strive to save a lot early in life so that you can relax later in late 40s and 50s. Our plan now is to buy 2 rental properties per year for the next 5 years and become financially independent. We don't intend to retire early since we love our jobs.
@@tyler951 Paying off house is an amazing feeling. Don't compare investments to mortgage which is amortized and will only makes sense if you live in that house for long time. Majority of your mortgage payment goes towards interest for the first 10 years of a 30 years loan.
You guys need to talk about the book “die with zero”. Lots of good information to chew on in that book. “Memory dividends” by paying for experiences when you are younger and healthier last a lifetime and get better with age. As you age in retirement, you will be physically unable to do the things you could have in your 40’s, 50’s. You will be eating less. Probably will have cars paid off, house paid off, just a lower budget in general. You don’t need to save to spend the same amount of money annually in your 80’s as you spent in your 30’s with a family and vacations etc
That guy should stick to poker
So retire by 40 then, got it.
Wait till your med bills hit - die with zero will be no problem
I don't want to be a strapped old person.
@@mulletsquirrel Nobody wants to be broke in their elder years. But it is true for most that your spending will taper off and do so faster than expected in your retirement years.
I love the talk about not compromising health! My husband and I are early 40s and gym and vitamins and healthy food isn’t cheap, and life insurance…- but yes it should be prioritized! Thanks for always giving out great content!
Eating healthy and spending on things you really enjoy are important. We’ve also been buying more time by hiring people to do things we used to do ourselves. We still save over 60%, but worked hard to increase income.
Excellent presentation, factual and coherent. Sent it to my kids whom I have been trying to expose from early age to financial education.keep on doing the important and moral job you have taken upon yourselves
Thank you
My friends husband was one of those people who thought they didn't need health or life insurance because they were in their early 30s and healthy. Last month he died of covid after spending several weeks in the hospital, leaving his wife and 2 kids with over $500k in medical bills and a mortgage payment they can't afford.
You never think you'll need it, until you do.
Anyone with a family needs life insurance. Period.
“Didn’t need health insurance”?!
@@stephanien6237 I can’t imagine they were just footing the bills for even well child visits and inoculations. How were the deliveries of the babies paid for? I hope they weren’t somehow taking advantage of Medicaid i.e. us taxpayers.
If he didn’t have health insurance, he should have just stayed home instead of going to the hospital risking to leave a half a million debt. I guess your friend was not a planner. Sad
@@missgui4400 Are you really arguing that if someone doesn't have health insurance (or it doesn't cover the treatment they need, which happens a lot) that they should just go die to save money?
very good conversation, thank you
You make great sense. We pay 1/2 of our granddaughter college bill. We setup a trust for her when she was born.
She earned a 50 % scholarship. We pay the rest with her dad. She won't have any loans when she graduates. We think that is the best thing we can do for her future. (And, she is attended an expensive top ten university where she will get a great education.)
Thanks for the good information about the past, present and future.
JDF
Thanks~~~~~
Very informative talk, thank you very much.
New viewer this month. Great stuff guys! Really helping people.
Thank you Elizabeth!
Thank you for this video, very helpful
Thank you for this reminder!
This Chanel is always wholesome and thoughtful. Good job guys.
Thank you for covering this. We are highly focused on building a secured future but didn’t know How to find the happy medium and live the present while we can - healthy and capable. Money is a tool not an end like you say.
loved the comment about bo and the cereal! when my wife (GF at the time) moved into my first post college apartment I think i had like 29 boxes of hamburger helper!!! i'd wait till it was .50 cents a box and load up. I laughed so hard, really brought back the memories. love the show, my wife and I are doing the FOO course together. wish I would have found the channel in my 20's
Been waitin for this vid. I’m 20 and I’ve been so focused on my retirement lately. I don’t wanna lose focus on my short and mid term goals as well! Thanks for the vid guys!
Thanks~~~~~
I would still highly recommend saving as much as you reasonably can at 20. Because of the way compound interest works, saving at 20 is like 40-50% more efficient that saving at 25% assuming you are properly investing that money. Saving early means the amount of total money you need to save is a lot less.
For example, say you want to retire at 65 with 1 million dollars. Because the market compounds at roughly 8% a year, putting away 40k at 25 will get you to 1 million by 65. But if you start at 20, the you only need to put away 30k to reach 1 million dollars by 65. And this is assuming you just lump sum it and never invest more. Starting early is overpowered in investing.
Great great video. We save to enjoy retirement and have a sense of safety. The happy medium still makes a millionaire in the end!
Recently came across your show and enjoying it very much. Thanks.
Welcome and thanks for the comment 👍
I’m so glad I ran across this video. As a federal employee, I often hear other feds say “max out your TSP.” That’s personally kind of extreme to me… even as someone who makes six figures. A 10-15% contribution (with a 5% employer match) is my max. I want to be able to travel and have fun NOW! Thankfully I started saving in my 20s and will have a pension.
I'm also a federal employee and I don't make 6 figures. Only 56k. It's been very difficult to save 20-25% into retirement buckets whilst saving for a house, next car, emergencies, etc.
Thought I would jump into the convo. I’m high on the GS scale and just can’t imagine these people who say they contribute 20-25%. Do these people not have mortgages!?!??
This was a great episode. Definitely some good perspective for someone who has miser tendencies 😅.
Absolutely great advice.
When I was young I attended free concerts, etc
Then I started saving in my early 30’s and have done well.
Great episode!!!
OK, going thru your back catalog and this is a video I plan on enjoying and learning from, while being 1000% convinced before I watch that it does not and won't ever apply to me... ;-)
Balance. It is a spend/save balance.
We are really close to retirement so we are building up our cash savings.
We still take weekend trips and vacations.
We are still able to help our son in college.
Balance what is important now with future goals.
I’m so happy this video exists. It’s so true guys thanks❤
Very valuable words of information👍🏿
Thanks~~~~~
Love the story about paper blinds...Priceless!
I appreciate all this show does! I just turned 25 and this episode in particular resonates with me. Im a very analytical person and am always calculating things. I save so much in my investment accounts and always feel like I’m not saving enough. I will definitely need to look at everything again keeping in mind the considerations you guys talked about.
You will be wise well beyond your age.
Look at your friends in 10 years and just discuss general investing advice and see how they are doing.
@@dipaknadkarni62 Thank you! Crazy to think it’s been a year since I posted this. I’m glad I have still stayed the course. My future self will be happy. Building a solid foundation as early as you can gives you so much freedom later and I’m excited for that.
You have gift of time at 25…don’t blow it but also have a good time and enjoy life..I did a little too much of the latter and am paying for it now
You guys are so genuine. You deserve 5 million subs.
Definitely was me. I grew up so poor that as an adult I was obsessed with saving to the point where we never went on vacation. Now comfortably retired but health isn’t that great. Wish I had enjoyed life more when I was working.
4:30 Bo quoting Kung Fu Panda 😂
I like these guys and sometimes listen to the whole program. My criticism is that it takes them an hour to give me ten minutes of content.
Adjust the playback speed to 1.5x or 2x. At these speeds, Bo talks a bit fast, but Brian sounds pretty normal.
And they desperately need time stamps.
So the friend stuff is so true. I have found that I love saving and talking about financial planning but my yolo friends get annoyed with me or don’t even want to talk about it because money stresses them out. 🙃
Just filled up one of my investment buckets yesterday, all in thanks from the advice and encouragement from this show! Roth IRA is maxed out, and now time to fill the other two. Love yalls show!
Congratulations. You can divide your maximum contribution by 12, and budget to contribute that amount every month.
One make sure it’s actually invested, not just sitting in the account, and two, while it won’t make a big difference in the long run, you may want to spread it out over a few months, in case the market drops the day after you put it in. But even despite that, it’s still amazing you were able to do that, good job!
I just put a question on one of your last videos about this and so I am so glad it was addressed today! I am investing roughly $4,500 a month at 25 and already own a home, so it sounds like I can back off quite a bit and not feel so bad. Love the show and the sense of security you give me by being able to relax with this stuff!
So you’re making like 10k a month?
Considering taxes deducted and living expenses I would bet it's closer to 15k
@@94mac A little more than but yes
@@Nightfire526 damn, that’s so much. Bravo I’m still shooting for $1,450 a month
@eccentricTea you got this bro! Anything is already that much more than most people
Money management IS a balancing act. There is such a thing as saving too much. The best advice I've ever heard is to "spend according to your values." If you value something, spend generously! if you don't, be ruthless!
This was a great episode. We have to balance living today and planning for tomorrow. As a daughter of an immigrant, I've been hyper focused on financial stability since a teen. I'm doing okay right now... I only check my retirement accounts 2x a year. But, I literally rearrange my budget for 1 financial goal at a time. Student loans are a major priority for me and investing in my health. That's it.
Whether I have kids before God calls me home or not... I still save for trips and fun things too.
Great video! I'm addicted to investing but it comes second to my relationships. I spent a small fortune on my daughter for prom last Saturday but it's a great memory. She was beautiful and enjoyed her day.
The corvette is having to wait. It was my goal for 50.
I bought a Corvette Z06 last fall. I've been debating getting rid of it lately and putting the money (payment) toward investments, but at the same time the car is just too much fun. I didn't want to wait til I was in my 40s or older to enjoy the car. Not the best financial decision, but we have to have balance.
I started retirement savings somewhat late. I worked on the family farm until I was 30 but the farm economy just wasn't going in the right direction for me to ever be able to run the farm myself. Back to school, engineering degree, got my first full time non-farm job at 35. So I've been saving more than most as a percentage of income. But it's paid off. I'm 62, have zero debt, and I've got around 1.5M of retirement savings. But I had to flirt with saving too much to get there and there were hard choices that had to be made. So two thumbs up to the advice to start saving early so you don't _have_ to "save too much" later on. (And those years on the farm weren't a "waste" savings-wise by the way. My parents lived long healthy lives but they're both gone and now I have the farm. It generates a small amount of passive income and if worst came to worst I could sell it)
My husband and I were just discussing this. We had our son before we graduated college. We knuckled down and have been so disciplined and have earned our army of dollars. We have our private investment fund that is worth more than most people our age have in their 401ks. Our retirement investments is well in the millions. We have had amazing careers as engineers, however I don’t think we would have been so disciplined if we were not for our son.
Thank you!!!
What if you want to start a business? That takes raising a lot of capital. I'm 19 and my net worth is $21,338. I'm doing my best to hit $100,000 and I'm proud if what I am doing. I want to do a lot of good in the world, and that's what makes me happy.
P.S. I work at Walmart for $18/hour.
You don't need much if any capital to start a business. Retail, restaurants etc. are generally not good businesses. There are lots of ways to be self employed that don't cost a dime but take a lot of sweat equity. Stop talking/thinking about it and just do it.
Bless Bo's wife for putting up with his bachelor life before
Thanks~~~~~
I got another great dad line for you: 'No amount of Money ever bought a second of Time' - Original quote by Howard Stark, said by Tony Stark in Avengers End Game.
this is why part of my "retirement" is a brokerage account. you can't retire in your mid 50s if every penny is in a 401k... you can't make that choice to by another house if every dollar is in the IRA. And i don't want to wait till 65 to enjoy possible stock gains if i find myself with the ability to to change my work life in my 50s or even earlier because i happened to have amassed enough capital to do so.
this was a very good episode=)
Your advice is GREAT for people who have a FIXED pot of investment income that needs to last a min of 20 years after they retire
Then you get the outliers like myself who retire with INCOME STREAMS
One of the great things about INCOME STREAMS is some of those income streams can be INCREASED (Rents come to mind)
But when your retirement pot of money is SUBSTANTIAL..lets say 1/4m.. it might be a good idea to buy RE which will increase in value
Great Show BTW!
Thank you for bringing me back to earth. I almost bought a luxury hand bag and don’t own a home yet.
I love the discipline with some balance of enjoyment. I struggle with leaving the tax benefits on the table while enjoying life.
that savings graph is incredibly misleading. The numbers only work if your rate of return never decreases - which is unrealistic - and the description leads one to believe it would slowly decrease. Yes $95/month gets you to $1m in 45 years - but only if you leave the rate of return at 10% he entire 45 years...even an extremely generous assumption of 10% for the 20's 9.5 for the 30's etc only gets you to 685k (and honestly this is a missed opportunity to dig into how powerful compounding is).
i deffo think there is something in finding an amount that is enough. I am aggressively investing, over 50% for the next 10 years or so, amass, hopefully aournd 250k. Then kinda take my foot off the gas a little drop it to around 30%. I divorced about 3 years ago, so sort of feel I need to catch up on missed opportunity.
You guys make a great point in that you need to enjoy today and create memories.
Determine what you will need to retire on and enjoy some money creating adventures while you are young.
There is a point when you could be saving TOO MUCH for the future and it may generate more income than necessary. Don't be the person who will retire with tons of money but unable to actually travel due to mobility issues or health problems.
My goal was to retire and maintain my same income level so my lifestyle would not change. I have done that and have future nest eggs I can use to offset inflation.
Congratulations! I’m actually aiming to increase lifestyle in retirement.
@@genxx2724 me too. I have a separate retirement account that I will use for travel. The first account covers all my months average expenses at home.
When I travel, I can pull from the second or not depending on the market. I am trying to mentor others to create the same set up. Been retired 5 months now and it is working great!! Have not needed to touch the travel account yet. Need to buy RV but no price breaks right now. I can wait.
29:15
Ha! I have you beat! My household had forty-five boxes of cereal (excluding oatmeal and so forth; just cold cereal) at one point back in mid-August. But that was due to a miscommunication and a good sale.
I mean, it was probably pretty excessive even if we divided it evenly among the number of people involved, but not quite as bad as it looks.
I am right there with you. The now ex-wife would buy tons of hair dye, lotions, creams, soaps, and other oddities enough to cleanse an army for years. She told me she bought it because it was "a good price." I told her I see cars for sale all the time but you don't see me buying more than I can drive. She had a shopping addiction and she filed bankruptcy before we married.
29:17 : There was a time Cheerios had a buy 1 get 1 sticker, so we bought like 45 boxes. I eat about a box a week (family size) for breakfast. 2 Carts full.
Ya I probably needed to hear this. I think im one of those people. I make less than most of my friends and we talk about saving and investing alot. Im always trying to save a higher % of my income to so that I can have close to the amount they have. Its "keeping up with the jones'" but in a retirement sense. I'm 28 years old and barely ever go on dates or out with friends. Time to make a change.
Thanks~~~~~
This is a good problem
investing 48% of my gross income. Have one year of expenses in an emergency fund. If I'm debt free and still able to live and pay my expenses, what's the problem? We find things to do that just don't cost a lot of money.
48% wow that's a lot
As long as you're maintaining a good and fulfilling quality of life, and you're not solely reliant on waiting until a late retirement to enjoy life, I don't think anyone's complaining against your particular situation. Thats also the case if your aggressively frugal cost of living is part of a retire-young strategy.
If that 48% is all in retirement accounts, and you're under 55, the problem is that you can't access that money for several years or decades (unless you pay penalties for early withdrawal). It's important to have enough outside of retirement accounts to pay for big-ticket expenses like a house or car.
@@megalodon1726 I am 58. My house and cars are paid for. The 48% is invested in retirement accounts,401K, Roth IRA's and HSA and $70,000 liquid for unexpected expenses.
This video hits home. Over the past few years I've built a 6 figure each 403b, taxable brokerage and high yield savings account, but perseverate on any expense that is more than a few hundred dollars.
Great content
Thanks~~~~~
I used to be in the miser category where I tried to stash away as much money as possible, so much so that I was miserable because I was depriving myself of fun activities and small treats. So I needed to pull back a bit.
I have been in a place where saving was my addiction. I was still a student and just came out of a 5 month period where I had no income at all while still having my expenses like rent, phone, school, food, healthcare. I got ~€1000/m (minimum income was ~€1750) and I managed to save almost 30%. No fun money at all. Not that I needed fun money, finding ways to save more was turning into my hobby. Now I still save ~30%, slight difference, is my current salary is the median for my country.
It doesn't hurt to spend a little, but smart move not inflating your lifestyle right up to your income level. I've seen a lot of people do this at my job. They get hired in and whether its their first real job after college or they spent some time elsewhere, its generally a pretty big pay raise for people. The smart ones just start maxing out their 401k, never get used to the money, and still end up taking home a bit more than they were previously making, and the dumb ones show up to work a few weeks after they start with a fancy car they just financed.
The possible health crisis you mention is why I invest in an individual brokerage and not just a Roth; I want to be able to enjoy some of it before I reach age 59.5 (I’m 35 right now).
Love the story of the blinds!!!!!!!!!! Made me chuckle! So true, though! Bachelors or guys think "plain and simple - or even go with the bare bones - living in a hotel room is fine for them.'". Women tend to want to nest and make things a bit more comfortable!
I had to chuckle as well! For my first apartment post-school where I lived completely alone in a small 2 bedroom apartment, I used an old sheet for the front-to-the-street bedroom window, and for the other, an old blanket (it had a beautiful view of a brick garage wall about 10 feet away). That was 1992-1996, foolishly bought a new car, tan up credit card debt, I was paying off student loans. Nice curtains? Bah, I just needed to make sure I didn’t get cited for exposure! I like my privacy, but I’ve got better uses for my money if a cheaper solution works.
Well, my goal is to not save as much as possible, but as soon as possible.
I don't want money bog me down doing things that I don't like.
I want to do something even if it doesn't pay me well.
This episode specks to me I am so focused on savings and feels a bit miserable even more in these times
I think we might be the people that saved too much for retirement . We are in our early 70’s and retired. We own our home, a vacation home and one home for rental. All homes are paid for free and clear. We have about one million in 401k and about 2 millions in cash and investments. Our monthly income from SSA and pension and rental covers about 100% of our total expenses. Our children are both well off so they won’t need our money. Now I am spending lots of money on cars and trips and some charities. I am trying to spend most of the money before we go. 😂😊
I have a Fidelity Roth IRA but I also own partial shares of Apple, other partial technology stocks and when the market goes down and I lose money for that day I feel terrible. Should I just transfer or sell the technology stocks and put my money into the safe Fidelity money market account (SPAXX) until retirement?
Great content, I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways
@HENAhlgren Given that we are not accustomed to such uncertain markets, the fact that the US stock market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@Blitcliffe My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
@@Harperrr.99 My advisor “MARIAM SANDRA MILNER” is highly qualified and experienced in the financial market.She has extensive knowledge of portfolio diversity and is considered an expert in the field.
This is me.. sometimes I'm to focus on saving.... but i spend when I feel uncomfortable
I don't know...
I'm in the save really hard, retire early path.
Live debt free, save and invest like crazy, you still need to live. Plan some trips etc.
Definitely DON'T put it ALL in retirement accounts.
Setup a traditional investment account
You want to be able to access a large portion of that money early if you are planning on early retirement.
Yeah same here. One thing I've noticed along the way is a lot of people around my age think I'm strange for saving so much...but then if you talk about finances a bit you find out they have a 700 dollar a month car payment, 600 dollar a month student loan payment, spend another 100-200 on random subscription services, carry perpetual credit card balances primarily spent on consumer junk they don't really need and vacations they couldn't afford, and pay 3-4x for rent than what I pay a month for my condo.
So in reality the money I save isn't me being some cheap miser like people assume...its just the difference between I'm debt free and my monthly budget is usually around 1700-2000 a month and someone who needs >4000 a month to make ends meet.
I just live a standard of living I'm comfortable with and whatever extra I make gets invested, which a lot of people can't understand. It seems if most people get a big raise at work they inflate their lifestyle, or if they get a nice bonus at work, or an inheritance, or some other unexpected chunk of cash...its just spent as fast as they get it.
My plan is to invest upfront to cover the cost of large standard of living improvements.
I want to buy an Airplane so I'll save up $200k-300k to generate the $15-20k funds needed for annual maintenance fuel upgrades, etc. Before I pay cash for the plane.
This way the investment funds the hobby as long as I want.
In my head it is me earning the hobby before taking it up.
Could do same with other money pit hobbies like boats, cars, etc.
Apply that method to your living expenses and you've achieved financial independence.
Hey! New listener! I've really loved your stuff. Thanks for all the info.
I am a little confused on something. For most of your other stats/charts you've assumed a 10% return in twenties going down half a percent gradually. Why are you guys assuming only a 6% return on the chart justifying the 25% savings? Not a rebuke, just curious.
To be safe. It's better to get more money in retirement than you expected than to end up broke.
FIRE actually recomends only expecting 4%.
Being prepared for the future...no problem there.. i retired at age 54. No regrets. And i also believe i over saved. Another posession is just more maintenance. Don't get possessed by your possessions
Hi Guys, love this video. First time watching your video and It is so refreshing! Most of us are so obsessed with savings for the future and forgot to enjoy today.
Any thoughts on buying up high yield dividends right now? Like the 12% yielding ones?
Perfect! My wife just need to hear this 😅