I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Leticia Zavala Perkins, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
28:47 minivans may be considered uncool, but they did indeed go up like the other vehicles. Vans that would have went for 17-20k during 2020 were 27k-30k in 2023 when we had to buy one since our family of three turned into family of five.
Bo’s life insurance story is us! We had all our insurance planned out to cover our three kids and then we had number four three and a half years later… and our policies end when he is 15. Eek. And we are in our forties now…. So, yeah, not sure how that one is going to work out! If only you could have a crystal ball when you are planning these things!
Never had a car loan in my more than 6-decade life. It is definitely doable. I didn’t have higher income until half way through my life. It simply requires basic saving discipline. If you can make a high interest loan payment and pay all that interest over the life of the loan, then you could have instead saved the cash… and actually avoided all that interest cost. It also requires that once you have a new or newly bought used car, you CONTINUE saving… for the next car. BTW, now that I am older, I care not one lick about what people think about the vehicle I drive. I drive the vehicle that makes the most sense. Even as a (4-child) now empty nester, that remains a Honda Odyssey minivan. Large SUV’s make little sense unless you’re the rare case of regularly towing an over 3,500 lb trailer. There is no better vehicle with the combination of fuel economy and people-cargo capacity than a minivan. We glam-camp at our rural off-grid vacation property throughout much of the year - we always take whatever we like.
If you buy cars in the sweet spot of 3-6 years old, you don’t need to continuously save for another one. With proper maintenance and buying stable brands (Toyota/Lexus and Honda/Acura) you can cycle through them, using each for 3-5 years then turning them over for nearly the same price you paid, minus about 2-4k. I think cars and car loans are the biggest blocker for most people when it comes to getting out of debt and saving for retirement.
Man I am a van guy and love mini vans. I can't wait for the Volkswagen Buzz to come to my country. That is one of the many things I look forward to if I have a child.
For the question about a bad 401k, it’s always a good idea to understand alternative jobs. While not stated, I have to speculate that there may be poor compensation or benefits with this employer.
@@710schmoke I definitely will! I really want to get to the 15% as quickly as possible but it’s tough at the moment. My plan is to increase it by 2 to 3% with each raise that I get. At least until I can afford going to the full match.
Oh my god, you will regret every minute you didn't maximize this. I would work a second job to get the missing funds. Max this thing and find another way to make the money.
We have decent funds but our match isn’t great. The match is 50% up 3% capped at $750. So I’ve always contributed 3% but some folks say 6% is more optimal.
About the robinhood, I shared this story a while back but I know someone that decided to open the Roth account for that 3% match. They deposited money and then it got stuck where it was on the robinhood account but not able to be moved to the actual Roth account. He was told that he had to identify himself with government issued documents which he did. He was not allowed to pull that money out and didn’t hear anything back about it for about 2 weeks. I stopped asking afterwards but damn it sucks cause I was getting him into the idea of starting to invest into a Roth. So just be aware that robinhood is still fairly new.
In this case put about 5% in the 401k. Do not use any of their people to advise you, that should save some on fees. Then search around in the investments offered for an Index fund put all or most of your money in that. I had to search my 401k for an Index fund. There was only one offered and it was listed on page 3 of their investments offered. Then when you leave this company immediately do a direct rollover of the 401k into a traditional IRA.
A traditional IRA balance can screw up your taxes significantly if you ever plan to do the backdoor Roth. I always roll traditional 401(k) to the next employer 401(k)
My wife and I are so spoiled both working for big financial firms with amazing benefits/matches. If your benefits/match stink, consider talking to friends and family and researching companies in your area to see if another company has better options that would be a good fit.
My employer pays 6% of my salary without any contribution by me, matches another 4% with full service, self service and suggested target date funds with fidelity as the servicer. Finances are not complicated, unless you are working with a financial advisor, then they’re really complex because they want you paying fees.
@@derrickbrown6437 my wife gets 7% match, 10% profit sharing, employer hsa contribution $1,500 per year, pay off up to 15K of student loan, 3K per year into retiree medical account. I get 7% match, ESPP, 1K into HSA. I am considering moving to her company.. the profit sharing on top of the match makes it soo good.
@@derrickbrown6437 my wife gets 7% match, 10% profit sharing annually, 1.5K to HSA annually, 15K to student loans over 7 years, 3K to retiree medical account annually, stipends for gym membership/home office annually. I get 7% match, 1K to HSA annually, ESPP. I am considering going to my wife’s company because that 10% profit sharing is awesome
I have an old 401k at $300k. Robinhood is offering a big transfer match at the moment and I’ve been looking into this. I’m younger and have time for the money to stay in there to keep the match. The only thing I’m not sure on is the fact I have to sell all my mutual funds in that 401k before transfer to robinhood because they don’t do mutual funds. I would then have to buy into ETFs. Are there any major concerns with having to do that ?
Robinhood does have a lot of cash on hand I can see them becoming big players in the future. I can also see why they have those higher fees since they are new .
My boyfriend 25 years old has just opened a Roth IRA. He does not have a previous retirement accounts. He just started contributing 3% to a 401k with 3% match. He has a large amount saved up at about 15k. This would be considered his emergency fund but it’s closer to a year’s worth of safety net. I wanted know if you would recommend him to contribute the max for last tax year 2023 before tax day in a few days. And then max out this year with monthly contributions as someone normally would for 2024.
Another thought on the car purchase - IF you want to go a loan route and follow the 20-3-8 rule, could get a new credit card with a 0% promo rate for 18-24 months. ONLY consider that if you can guarantee from your behavior / discipline to have the cc paid off before the promo period expires.
In short - yes. In my experience there are limitations including cc credit limits and dealership policies (sometimes there are limits in how much the dealership will allow on a credit card). The 0% promos can be useful but only consider if you will pay off everything before the promo period expires - otherwise the interest is applied retroactively after the promo period ends.
Seems like a lot of risk unless you kept cash in your emergency fund to pay it off if you have an unexpected disruption of income. It might also tempt someone to buy more car than they really need. Writing that big fat check every time I buy a car with cash makes me really think twice about how much I spend.
Your employer isn’t matching Roth with after tax dollars. The only consideration for the Roth is your own budget and comfort level with using after tax dollars towards retirement. The chances that taxes will be higher in the future are probably greater than 99.9%, so paying taxes on the money today is wise.
You always recommend to do Roth 401k, but if we can't maximize contributions, can you compare trad 401k vs roth 401k with the same take home pay? since that will mean different contributions and will be treated differently when we take out money during retirement. Thanks!
Watching Bo’s face change when Brian said Book Tour at 47:20 was hilarious! 😂 I’ve replayed it half a dozen times.
That was funny. Your comment put me on the lookout for it.
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Mind if I ask you to recommend this particular coach to you using their service?
Leticia Zavala Perkins, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
The irony of youtube showing robinhood ad right after your segment on robinhood
28:47 minivans may be considered uncool, but they did indeed go up like the other vehicles. Vans that would have went for 17-20k during 2020 were 27k-30k in 2023 when we had to buy one since our family of three turned into family of five.
The fact that Brian quoted Rounders makes me like him so much more ;)
Bo’s life insurance story is us! We had all our insurance planned out to cover our three kids and then we had number four three and a half years later… and our policies end when he is 15. Eek. And we are in our forties now…. So, yeah, not sure how that one is going to work out! If only you could have a crystal ball when you are planning these things!
Never had a car loan in my more than 6-decade life. It is definitely doable. I didn’t have higher income until half way through my life. It simply requires basic saving discipline. If you can make a high interest loan payment and pay all that interest over the life of the loan, then you could have instead saved the cash… and actually avoided all that interest cost. It also requires that once you have a new or newly bought used car, you CONTINUE saving… for the next car.
BTW, now that I am older, I care not one lick about what people think about the vehicle I drive. I drive the vehicle that makes the most sense. Even as a (4-child) now empty nester, that remains a Honda Odyssey minivan. Large SUV’s make little sense unless you’re the rare case of regularly towing an over 3,500 lb trailer. There is no better vehicle with the combination of fuel economy and people-cargo capacity than a minivan. We glam-camp at our rural off-grid vacation property throughout much of the year - we always take whatever we like.
We are 28 and no car loan so far, and we’ve bought two low mileage vehicles and several “beaters” through the years.
If you buy cars in the sweet spot of 3-6 years old, you don’t need to continuously save for another one. With proper maintenance and buying stable brands (Toyota/Lexus and Honda/Acura) you can cycle through them, using each for 3-5 years then turning them over for nearly the same price you paid, minus about 2-4k. I think cars and car loans are the biggest blocker for most people when it comes to getting out of debt and saving for retirement.
What a shocker that Brian is doing a book tour. Also, John Bogle was right, expenses matter, and they matter a lot.
I’ve been watching you guys for a few months, I had no idea we are in the same county this whole time lol
Man I am a van guy and love mini vans. I can't wait for the Volkswagen Buzz to come to my country. That is one of the many things I look forward to if I have a child.
I work for a non-profit..no 403b match..total bummer..2-4% of salary profit sharing at least..depending on years of service
How does a non profit have profit sharing? You get 2% of zero? 😂
Definitely do a follow up video
There's a Tesla Cybertruck on the shelf behind Bo -- Brian's found his true love? lol
For the question about a bad 401k, it’s always a good idea to understand alternative jobs. While not stated, I have to speculate that there may be poor compensation or benefits with this employer.
Thanks guys, I was just thinking about this recently
as a 20 year old, how do I buy $1 beer? I realize it would be $88 at age 65 if I invested, but the liquor store wont sell me $1 beer at 20.
Buy the $1 beer at 21 and retire at 66 👍
Lol go on holiday to somewhere where its legal.
I was a lot more resourceful at 20. Not a question I ever had to ask. Lol😂
It’s Brian Preston The Money Guy 😊
My company matches dollar for dollar up to 15%. I do about 6% but look forward to being able to get to the 15%.
Wow you're lucky mine only does 5% take advantage of that free money man!
Wow that is crazy high. Mine only goes to 4%
@@LawrenceTimme it’s definitely an amazing benefit.
@@710schmoke I definitely will! I really want to get to the 15% as quickly as possible but it’s tough at the moment. My plan is to increase it by 2 to 3% with each raise that I get. At least until I can afford going to the full match.
Oh my god, you will regret every minute you didn't maximize this. I would work a second job to get the missing funds. Max this thing and find another way to make the money.
I pre-ordered in March. Anything cool for that?
Good show
We have decent funds but our match isn’t great. The match is 50% up 3% capped at $750. So I’ve always contributed 3% but some folks say 6% is more optimal.
I seen a caleb hammer episode where a girl had a car loan at 29 percent
About the robinhood, I shared this story a while back but I know someone that decided to open the Roth account for that 3% match. They deposited money and then it got stuck where it was on the robinhood account but not able to be moved to the actual Roth account. He was told that he had to identify himself with government issued documents which he did. He was not allowed to pull that money out and didn’t hear anything back about it for about 2 weeks. I stopped asking afterwards but damn it sucks cause I was getting him into the idea of starting to invest into a Roth. So just be aware that robinhood is still fairly new.
I’d be interested in a deeper dive on the Robinhood match
Wait, Lump Sum always beats Dollar Cost Averaging? I feel like I’ve always been told the opposite.
Ken Fisher says if you have it get it in asap. In his words DCA doesn’t make a sizable enough difference to spend the brain power.
In this case put about 5% in the 401k. Do not use any of their people to advise you, that should save some on fees. Then search around in the investments offered for an Index fund put all or most of your money in that. I had to search my 401k for an Index fund. There was only one offered and it was listed on page 3 of their investments offered. Then when you leave this company immediately do a direct rollover of the 401k into a traditional IRA.
A traditional IRA balance can screw up your taxes significantly if you ever plan to do the backdoor Roth. I always roll traditional 401(k) to the next employer 401(k)
Just get some Weathertech floor mats, all good for that minivan mess. Multimillionaire household and have a 12 yo mini-van as a family hauler.
My wife and I are so spoiled both working for big financial firms with amazing benefits/matches. If your benefits/match stink, consider talking to friends and family and researching companies in your area to see if another company has better options that would be a good fit.
For reference, what do you consider amazing benefits and match?
My employer pays 6% of my salary without any contribution by me, matches another 4% with full service, self service and suggested target date funds with fidelity as the servicer. Finances are not complicated, unless you are working with a financial advisor, then they’re really complex because they want you paying fees.
@@derrickbrown6437 my wife gets 7% match, 10% profit sharing, employer hsa contribution $1,500 per year, pay off up to 15K of student loan, 3K per year into retiree medical account. I get 7% match, ESPP, 1K into HSA. I am considering moving to her company.. the profit sharing on top of the match makes it soo good.
@@derrickbrown6437 my wife gets 7% match, 10% profit sharing annually, 1.5K to HSA annually, 15K to student loans over 7 years, 3K to retiree medical account annually, stipends for gym membership/home office annually. I get 7% match, 1K to HSA annually, ESPP. I am considering going to my wife’s company because that 10% profit sharing is awesome
@@Savvynomad225contributing 6% by default is wild. Never heard of that. My employer only does a match of 4%.
I have an old 401k at $300k. Robinhood is offering a big transfer match at the moment and I’ve been looking into this. I’m younger and have time for the money to stay in there to keep the match. The only thing I’m not sure on is the fact I have to sell all my mutual funds in that 401k before transfer to robinhood because they don’t do mutual funds. I would then have to buy into ETFs. Are there any major concerns with having to do that ?
Robinhood does have a lot of cash on hand I can see them becoming big players in the future. I can also see why they have those higher fees since they are new .
Robbing the hood?
They didnt beep out the book tour
My boyfriend 25 years old has just opened a Roth IRA. He does not have a previous retirement accounts. He just started contributing 3% to a 401k with 3% match. He has a large amount saved up at about 15k. This would be considered his emergency fund but it’s closer to a year’s worth of safety net. I wanted know if you would recommend him to contribute the max for last tax year 2023 before tax day in a few days. And then max out this year with monthly contributions as someone normally would for 2024.
I would recommend maxing the 2023 Roth IRA ($6500) and keeping the rest as an emergency fund.
@@christophermoreno3668 Totally agree!
Definitely max out 2023
@@christophermoreno3668 Thanks for the reassurance. It’s done!
Another thought on the car purchase - IF you want to go a loan route and follow the 20-3-8 rule, could get a new credit card with a 0% promo rate for 18-24 months. ONLY consider that if you can guarantee from your behavior / discipline to have the cc paid off before the promo period expires.
24 months? I’ve seen 18. Are you saying use a credit card to buy a car?
In short - yes. In my experience there are limitations including cc credit limits and dealership policies (sometimes there are limits in how much the dealership will allow on a credit card). The 0% promos can be useful but only consider if you will pay off everything before the promo period expires - otherwise the interest is applied retroactively after the promo period ends.
@@bobbythurman4043 store credit cards do retroactive interest but not regular credit cards.
You could if allowed by the dealer. Most dealers will charge you the credit card fee of 2-3%
Seems like a lot of risk unless you kept cash in your emergency fund to pay it off if you have an unexpected disruption of income. It might also tempt someone to buy more car than they really need. Writing that big fat check every time I buy a car with cash makes me really think twice about how much I spend.
We have a 6% match,
Is it dumb to do 10% contributions where: 6% Roth 401k and 4% 401k ?
The match is likely traditional already. Depending on your tax bracket Roth is still better (around 25-30% tax bracket you need to do the math)
Your employer isn’t matching Roth with after tax dollars. The only consideration for the Roth is your own budget and comfort level with using after tax dollars towards retirement. The chances that taxes will be higher in the future are probably greater than 99.9%, so paying taxes on the money today is wise.
Take the match
I have a 403b. It sux.
3% is chump change
It's not the 3%, it's the 3% after 30 years of growth. That being said, I personally just moved my portfolio from robinhood to vanguard.
@@TheFireGiver smart move
Not worth the 3%? 😂😂😂😂
You always recommend to do Roth 401k, but if we can't maximize contributions, can you compare trad 401k vs roth 401k with the same take home pay? since that will mean different contributions and will be treated differently when we take out money during retirement. Thanks!
You can't calculate it without knowing what the tax rates/brackets will be at the time you retire. So there's some guessing involved.