Is $1,000,000 Still Enough To Retire?
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- Опубликовано: 21 авг 2024
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This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
This guy posts the same stupid comment on multiple videos 😒
I know a couple who cashed out of the stock market years ago during a downturn. They lost a literal fortune by doing so.
Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor. Neglecting them isn't an option; however, thorough research is vital to find a trustworthy fiduciary advisor.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
I'm guided by “Christine Morrison Evans an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
Dave always drops the ball on this and it drives me crazy. 10-12% is a high goal to aim for in returns, but that's another topic. It's fine to aim for that when you're WORKING AND CONTRIBUTING. But when you retire, you wouldn't have your 401k invested in only the S&P500 anymore. You would want it to involve much more fixed assets like bonds, which would drastically lower your ROR in retirement. That means you wouldn't be able to pull 10% off it it every year without touching the principal. It would be more like 3-5% off every year. That's why the optimal ROR for retirement is 4% withdrawals. 10% is based on a portfolio that is heavily S&P500-based, which is NOT recommended for retirees as it is too high risk.
The S&P average is at best 8%.
@@situated4Wrong.
Dave doesn't believe "decreasing risk" after you retire.
@@evr0.904I don’t either. lol 100 years is enough data for me
You would be better off with gold and silver than bonds lol
Gold is up %7.7 a year since 1950 and is break even after inflation
Bonds go down guaranteed because of inflation
“A wise man saved for his future, but a foolish man spends all that he has.” -Proverbs 21:20
Dave ignores the Bible when it's inconvenient. Good quote though.
What if there is no future?
@@evr0.904 "Dave ignores the Bible when it's inconvenient."
Examples please.
@@thomasd5488 Literally any time he mentions anything other than money.
@EricSmyth4Christ
"A man who earns $10, and spends $11, is unhappy man.
A man who earns $10, and spends $9, is happy man."-source unknown
Sincerely, I'm genuinely moved by what you said about early retirement. And yes i equally agreed with you It's the FREEDOM from being able to make a conscious choice, each and every day, in terms of how you’re going to spend your time… I have about 40k that I am willing to invest if given the appropriate knowledge and I am highly interested in investing. My greatest concern is losing money on a bad investment. I'm open to hearing your advice on how to make sensible investments as a result.
no time to look back! avoid unnecessary spendings, you can move to wealth by increasing your investments and as far as i'm concerned, advisors are ideal reps for the job
Right, using an invt-advisor is ideal especially for near retirees and newbies that barely understand how the mkt works, my portfolio used to be up and down like a seesaw, not until I hired an advisor around March2020 amidst the lockdown. This is how I've been able to scale up tremendous 7figures in ROl, after subsequent investment as of today
bravo! thinking what stocks you have in your wheelhouse.. i've been on-and-off the mkt for 3 yrs and still cant get right, mind if I look up this person assisting you please?
My portfolio comprises of three major markets, and Mrs Marisol Cordova is the investment advisor that guides me, she's well renowned, most likely the internet is where to find out about her.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Yes it is. My dad and stepmom retired 3 years ago on less than a million. Like only $750k - they moved to a cheaper area, sold their old house and bought a cheaper house in cash, and have no debt at all. They live simply but they are happy. If you don't care about lavish luxury, it's enough. They are 70 years old now, retired at 67.
In my opinion this is key being completely debt free going into retirement is a big factor that it seems like I don't hear enough about in the conversation of retirement. All I ever really hear people talk about is the size of their nest egg and what dollar figure do they need to retire on without looking at the other side of the equation. Sure if I retire with a mortgage and other consumer debts then you're going to need a much bigger pile of cash going into retirement.
Thats not the case for everyone, You arent from an area where the average home price is 1million im guessing lmao.
@@Richlucch It doesn't matter. If you retire with a million dollar home then you better have the additional finances. If you don't, then you can't afford the house.
@@Richlucch I specifically said they "moved to a cheaper area". They lived their whole lives in Cook County north suburbs out of Chicago which is an incredibly expensive area to live in. They never could have retired there and that's why they moved to a cheaper area (New Mexico). My point stands that without any debt, it's possible to retire on less than a million if you are willing to relocate.
You can guess all you want about me. I personally live in a home that I paid over a million to build and that was before all the covid price hikes. Homes in my neighborhood sell for anywhere from 1.1 to 1.5 million and 2 miles up the street many homes going up are 2 million+. I am well aware of how much it costs to live where I do in Wisconsin here but I'm 40 and owe 400k on my 7 figure house which will be paid off well before my retirement. Point being get the house paid off and don't carry other debt and you will have some options for retirement.
With 750k in the right place that’s plenty of money to generate a decent income for 2 and no debt. If it’s in the market you will lose your butt. If it’s in an FIA you will be just fine. High participation, guarantees no market losses and 10% free withdraw every year. My FIA has averaged 12.7% over the last 10 years with ZERO risk. That means I did not lose anything over the last decade even when the market went down. My gains lock in and I never lose. It’s a no brainer
I'm retired now, and I don't have a million dollars. But I'm doing just fine, and my money will last me at least 20 years and probably more. I don't know whether I'll even be around for that! But I have no debt, none at all, not even mortgage. I track my expenses carefully each month, and that helps me see where things are going.
I don't worry about spending from my nest egg because I have no children and no one to leave it to. I plan to spend it on myself and my needs because no one else is going to support me financially. It all depends on your own circumstances.
I'm right with you! I'm 52, a month into a layoff and I believe I've decided to try retirement. I've tracked my expenses for the last 10 years and I've calculated that as long as my investments can do no less than 5% on average, I should be fine. To ensure that I can survive the gap until age 59 1/2, I'll try for some kind of low stress job next year that won't pay anywhere near what I was making at the time of the layoff. Plus, it will help to keep me busy. I just want to take a break from the work place for the remainder of 2023.
@@KayKay0314 congrats...great plan!
@@rafeeqm It's great! I have everything I need!
@@KayKay0314 Fifty-two is pretty young! I could not have retired at that point. My major contributions to my retirement were made from 52 to 62, and it made a big difference for me. I also did not take Social Security benefits until age 68.
@@jodylarson4697 Then who will you leave it to? You don’t want the government getting their grimy hands on what you worked your whole life for.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just inveesting through a brokerage adviser, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns. `
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with
Firms can be unscrupulous as they prioritize their own commission over your profitability. On the other hand, I prefer working with individual investors like "Debra Ella Nicholas", who only take a share from your proffits, not your capital. I must say, my experience with her has been exceptional thus far.
please how can one find the lady you mentioned'?
This is exactly how you do it. I retired last November at 60 and never had a 401k until I was 41. In 19 years I saved $1.1 million. I've averaged 14.95% each year for the last 10 years.
How?
@@sb8404hes lying
I was 35 before I found a "real" job with benefits including a retirement account. At 43 that job laid me off and I had a net work of less than 100k. But two years later got rehired and got to work. I turned 60 in June and just passed $1 million in net worth. I plan to double that and then retire at 67.
@23chnge Fidelity FSELX 35%, FBGRX 15%, FXAIX 25%, FSPTX 25%. 5 year avg is 14.13% and 10 yr avg is 12.85%. My money has doubled in the last 5 years. These percentages were a little higher, but the last 3 months have not been good.
*past returns are not an indicator of future performance.
The last 20 years we have seen the meteoric rise of companies like Amazon and Apple. We can't assume this performance will continue. Dave's insistence on an 8% withdrawal rate is just reckless, and it infuriates me every time I hear it out of his fat mouth.
I’m retired 6 years and still haven’t touched my savings. We live off our social security. It can be done if you retire debt free.
Sounds boring.
Why would you want to live on a small budget rhe rest of your life😂
@@rbu245 Lol because we’re basically simple folk. I don’t feel deprived of anything. Unfortunately my husband doesn’t like to travel.
@@fishroy1997 Not really. It depends what you like to do.😊
@@fishroy1997It is...😢
I’m not ready to retire yet but I live a simple little life. A million is still a crapload of money to me in my world 😂
Yes, but if you would want to retire for 20 years you also have to take into account the inflation… so 1 million will be way less
Love Dave's optimism! Screw it, I'm going for 13% average returns and a 9% withdrawal rate! Sequence of return risk, schmequence of return risk!
Lol. If someone did that starting in 1999, then would have run out of money in 2010 or so. Assuming taking out 8% of the original amount. Even ignoring inflation. What pessimists we are!
If you're being serious, you must be working with room-temperature IQ.
@@mplslawnguy3389 if Dave says it, it has to be true. Get with the program man! 😂
Use the 4% Rule.
According to the Trinity University research on retirement income.
• Take 4% of your nestegg to fund each year of retirement
• Then adjust upward by the rate of inflation.
• To reverse calculate how much you will need to replace your income in retirement multiply your annual expenses by 25.
Keep reading on this subject. It’s very important as you plan for retirement
Use the dividend rule and keep most of your money… a lot of companies and etfs pay a dividend use the dividend income to fund your retirement and keep most of your principal 😊😊😊
The industry accepted safe withdrawal rate in retirement is 4%. Expecting to pull off 8% per year, double the standard, is crazy.
Yup. 4% withdrawal is on the money.
However as you get older you probably want to reallocate some of your more risky holdings to safer ones, thus lowering your total annual return..
Daves quote of the sp500 returning 11.8% average is not accurate.. is he factoring in dividends, and reinvesting dividends? Plus a quick google search will show you many web sites (all pretty credible) that will show a range of historical sp500 returns ranging from 8% to 12%.
I am planning retirement around 8% returns (doubling every 10 years). If the returns are better than that, then great!
Someone pulled the four percent number out of their arse, and people ran with because it sounded good. It's really not an industry standard, just some BS numbers some clowns were using, and it stuck.
Instead of complaining,just invest. You can complain about the nuance when you have millions.
There is a lot of criticism regarding that conventional wisdom of 4%/yr. Many people have looked into it in depth and determined that 5% is fairly conservative and you'll probably be safe. 4%/yr is super ultra conservative.
I've decided that I am going to try to do the equivalent of RMDs starting at age 60. I may just do the mid-point life expectancy of the number for both males and females. At age 60, those numbers are 20.57 and 23.67 respectively. The mid-point of those numbers are 22.12. If I have $1 million in total in my retirement accounts, then I would divide $1 million by 22.12, which is $45,207 (4.52%). That's how much I would pull from my retirement accounts, doing my best to avoid sequence of returns risk. If that's not enough money for the year, which it likely won't be, then I might want a part-time job until enough time passes to where the RMDs are finally enough.
Jade is so good at explaining this to the younger folks.
She really isn't. She sucks at her job.
No she's not, that was horrible.
Retirement planning for high-net-worth individuals can be even more complex. These people, who have at least $1 million in cash or investable assets, have a lot to think about when it comes to planning for retirement. I still want to know how best to compound at least $10m in retirement savings.
if you’re considered a high-net-worth individual and the steps you can take to maximize this time of your life. Beyond these strategies, consider enlisting a financial advisor to tailor a retirement plan that’s right for you.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you
Thank you for this tip , I must say, Monica appears to be quite knowledgeable. After coming across her web page, I went through her resume and I must say, it was quite impressive. I reached out and scheduled a call
FIA!!! Forget these scammy financial advisors. You’re way better off using a FIA for guaranteed principle , high participation and guaranteed income for life. No brainer. Don’t waste money on someone you have no clue how good or bad they are with other peoples money. And the stock market guarantees nothing..
Disgusting bots
He makes it sound as if it is so easy to find a fund that will beat the S&P. The risk, which is more likely to happen, is that you will find a fund that UNDERPERFORMS the market.
Not if you do a little research.
It will be great if the S&P 500 grows by 10% or more until I retire, but I'm very skeptical. I expect growth to match inflation.
Hes such a liar
@@TheFirstRealChewy
Mr. Stewart; focus ALL your resources on what YOU control. Don’t let fear worry or doubt distract you.
• Every generation in America for the last 100 years has had legitimate reasons to doubt and fear the future. Yet the stock market has averaged 10% annually.
• You are living in the wealthiest country on the face of the earth. At the wealthiest period of human history.
• I encourage and challenge you to get to your 1st million (if you desire to).
• Once that milestone is reached your wealth starts snowballing at an astounding rate.
• Investing is your BEST hedge against inflation.
@@TheFirstRealChewy Keep in mind that that is an AVERAGE. You can have four years of BIDENOMICs and four years of outrageous growth, and ON AVERAGE, you do well.I had a professor in college point out that you can have one foot in a fire and the other foot frozen in a bucket of ice, but ON AVERAGE, you feel fine.
10-12% is a little optimistic. I would say 7-8%. Expenses also play a huge part in this equation. High expenses and you can easily blow through this $$.
I have avg 12 and 14 % Over 20+ years. I don't bank on that. I use something lower than that for expected income, not needed income, expected. At this rate, I am going to have 4 million at 75. Retiring in my 50s and going to ride into the sunset.
The thing Dave never seems to admit is that every advisor would recommend dropping your exposure to equities more and more as you get closer to retirement age so these 12% estimates that are based on equity heavy portfolios isnt a fair expectation as you get close to 60 or retirement age whatever that is for you
“What lifestyle do you want for retirement?” I think answering this will answer the “is it enough” question
My wife and I are retired. Even with the 'wonderful economy, no inflationary' times (so they tell us) we have lived through the past couple of years, my investments have grown 7% overall and that is even with my wife and I withdrawing roughly $80K to live on in the past 12 months. We have lived, saved, and spent as Dave has counseled for as long as I can remember. No debt at all and we just purchased a new car - cash of course.
Listen to Dave - his words carry the strength of iron.
You must have 2-3 million
The thing is that when you retire you dont run to your 401k and pull all the money out. You live off what it makes and also draw social security. It is still there. If you are in a position where you also get a pention you are living really well . Everyone's situation is different but for sure planning and saving gives you better results.
Excellent… invest in your company 401k drive a cheap car with no car payment… live in a small apartment at first… save a buy your first home … live on less then you make … 25 % of your income for housing 15% for transportation 15 % phone and utilities 25 % food and entertainment… you’ll have 20% left over to save and invest 🤗🤗🤗
Until social security runs out lol.
EXACTLY right. The whole idea is to live off whatever "income" you have, most likely and primarily social security, and the other things like 401k or other pensions allocations or whatever are meant to be supplemental, but not primary, sources of income.
Retirement is a very nuanced thing and there is no one-size-fits-all strategy. People have different risk tolerances, pensions, no pensions, 401ks, health concerns, cost of living, debt, you name it. My advice is don't listen to idiots like Dave on the internet. Learn about finance on your own. READ. Stop listening to these click-bait short video clips.
Average returns are misleading. The market has averaged 10% sure, but what if you retire in the year the market is down 50%? You will run out of money withdrawing 10% or 8% per year. Also, beating the market is not easy, average market returns are above average actual returns for the majority of investors.
If you retire in a year the whole market is down 50% I suggest investing in ammo.
Put it under your mattress then lol
50% has never happened ever in history, where do you guys come up with these ridiculous arguments?
@@MrJimmy3459 the market has never gone down 50% does not mean it will never happen though. But… if that happens we all have bigger problems than retirement. 😂
Would the returns be above average about half the time?
Jade is great. She’s probably the only one that can come close to filling Ramsey’s role.
Have your home and cars completely paid off. Retire to an area with a relatively low cost of living. But the best advice is to make a lot of money in the decade or so leading up to retirement. I don't know what the future holds for Social Security, but if you collect at or near the maximum now, it's pretty easy to live on it. I retired 2 1/2 years ago and haven't touched any retirement savings. In fact, we have more cash on hand now than the day I retired.
As an investing enthusiast, I often wonder how veteran investors get rich off dividends. I do have a good amount of capital to to invest for passive income, but my focus right now is how to gain wealth from market resurgence, I'm keen on retiring early with at least $3.5m.
Not falling for yield traps is important, focus on long term growth. ideally, a good advisor can help you earn those dividends over time
I was taught well on how to save, nothing on dividends, but now I'm really ratcheting up investments with the help of a reputable advisor, realized at least $800k after subsequent investments in so far this year. I do think I have dropped a lot of stress about finances having a long term perspective about investing.
This is great! think your advisor would get on the phone with an unknown? I'm retired and don't know what to do with my money, concerned about my savings due to high inflation
There are many financial experts who excel in their profession, you just have to do your research. Personally, I employ the exemplary service of Lisa Ann Moberly, and luckily she has a web presence.
Very much appreciated, curiously inputted her name on my browser, found her site ranked top, and skimmed through her credentials no-sweat.. she actually shows a great deal of expertise.
Life is too complex these days for many people. Simplicity is the best. I have an aunt in Odessa TX that immigrated from Mexico many years ago and in now retired at 72. No 401k no investments of any kind other that her small house on a acre of land in the desert on social security and Medicare. Drives a ford explorer and cooks mainly at home on a 30 dollar a month cellular plan and uses an antenna to watch her spanish channels on a 75 inch HDTV my cousin gave her when he decided to get a new one. Drinks her coffee every morning on her porch and waters her plants cooks vast majority of the time and has family and friends than come over to visit and talk. Ask her and she will tell you life is great and that she is blessed. I just don't get why people who have more than her seem to struggle financially and worry so much it's just baffling.
Odessa TX -- you said it yourself. That's basically one of the lowest COL in the entire U.S. You can't just cherry pick the cheapest cities in America and then generalize to the whole country. That's literally insane. Someone lost a few b-cells when they were teaching Stats 101.
@@athens31415 Odessa the lowest cost of living??? Apparently you have never been there. 10 dollars for a breakfast taco, they have the highest gasoline prices in the state of Texas, highest rentals. It's an oil town. Do yourself a favor and use your remaining brain cell and Google property prices and see what you get for the money.
Much of what Dave says is very wise. But he really needs to publish his unicorn 4-fund portfolio that consistently gets that 11-13%.
It doesn’t consistently get 11-13… he said it avg’s that since it’s inception. Trust me, they are out there.
You are right to question. What happens in a couple years of -14%....-29%.......they do happen.
Haha exactly!!! What world can you get a reliable 12% interest!!?? That is such a ridiculous assumption and he uses it to just enhance his idea of investing and becoming this super millionaire easily. Oh just invest this much money in your 20s and get 12+% every year, for 30yrs and you will be rich lol. Right right
Dave should disclose his managed growth stock mutual fund portfolios that beat index funds so we can follow along.
I mean, theres a reason, its not ture
Vpmcx, fcntx are apparently two mutual funds that beat the S&P
@@roymcpherson1639 A moderate expense ratio at .38 but yes on average they both do just that. But looking at their investments I see mostly what I already own individually minus the.38%.
Guys not just any growth stock mutual funds, they’ve got to be “good” growth stock mutual funds.
Exactly. Heck, just going for S&P 500, or funds like VTI/FSKAX (overall US) paired with VXUS/FTIHX (overall international), often will do the trick for at least decent, consistent returns without getting "cute." For growth funds, something like VUG or QQQ could work, as long as the funds have good returns AND low expenses.
4:10 “not hard to beat the s&p” 😂
Then why do 94% of funds fail to beat the s&P. 😂.
if it isn't it's because you confuse NEEDS vs. WANTS. You don't NEED a new car every two years, a four bedroom home,[ when the family gets together put them up at Howard Johnson},two cars, a boat a rv ,world vacation every year. I have about 35 k income including S>S> and I can still go visit family 2 thousand miles away every 4 years.
Dave - always so sound and wise with financial advice, except when talking about investment returns. "Just get 10%. Its easy." People don't get 10% year after year. Maybe 7-8% with some better and some worse. It not that easy and mutual funds don't match the market over the long term. However, he's right. It's not the rate of return, it's the saving of money that matters.
The stock market average is around 6.5% year over year. I'd like to know myself where he's getting that 10% year over year average.
@@michaelb.8953 It's something like 10.38% year over year. Do the math.
@@michaelb.8953When you say “the stock market” what are you referencing? The S&P 500 index has annualized returns of 9.9% over the past 30 years.
this is completely false. an 8% withdrawl rate is not safe.
The product of inflation is an increase in prices. This includes increased prices of stocks. Stocks passively adjust for inflation.
Dave’s advice is to live like a homeless person your entire life, never enjoy it and maybe live long enough to enjoy your money. Truth is a lot of people die before retirement. Enjoy your youth people go out and do stuff, buy a motorcycle, travel while you’re young. Yes save but not all of it. It’s a balance.
all he says is to 1. pay off your debt 2. save 15 percent for retirement. Like legit is that considered extreme today?
@@imveryhungry112 With 62% of the population living paycheck to paycheck. Yes.
Though i'm more in the camp of investing in your career until you get to the point of being able to save 60% and retire after a few years. It's more fulfilling.
@@eric3434 62 percent of the population is living paycheck to paycheck because 81 million of them voted to let in 50 million additional low cost migrants and send a trillion dollars to ukraine over the next 5 years. If people wanted a change they could get one but apparently the population is happy with things the way they are.
Can anyone find the mutual funds that he uses? I can’t find any that consistently return 12-13% over an extended period of time
He has a video or two from a couple years ago that talks about them. He generally shies away from naming them outright. He uses a couple that are actively managed, which he generally shoes away from, because of the fees. But the funds he uses earn enough to justify the management fees. Maybe search his channel for "mutual funds" or "actively managed funds".
pretty sure people have narrowed it down to The Growth Fund of America (AGTHX)
Etf “cowz”
lol I don't have even a tiny fraction of that and am very happily retired, debt free, and living a wonderful life. People put far too many expectations on their money bringing them contentment. :) And I could not afford where I lived so moved where I could make it.
That is not how the math works on the withdraw rate because you still need to withdraw during a downturn and so although your investment may average 11% returns there are times where it is down 50% and you are still withdrawing. A 50% downturn isn't matched by a 50% upturn, you have to gain 100% to recover from that. There have been lots of studies on this and the general consensus has been for a while that a 4% withdrawl rate from an investment in the broad market is relatively safe (95% confidence). An 8% withdrawl rate is DEFINATELY not safe and I am surprised you would recommend that.
I agree completely… when retired you investments should be conservative not aggressive focus on dividends … dividend growth companies and etfs and high quality bonds… try not to withdraw from the principal 😊😊😊
Stop saying that it's not hard to beat the S&P 500. More than 90% of fund managers don't beat the S&P 500. Put your money in index funds rather than so-called growth funds that may be the S&P a couple years but don't do it consistently
If Dave truly believed it is such a slam dunk to.double your money every 7 years then he would recommend that you all borrow on everything and throw it at the stock market . Why would you pay off a house that appreciates 3% a year when you can get a 10% return. Why pay off a 6% loan in exchange for 10% rate of return. In Dave’s world there is no sequence of return risk.
“Risk” but he can’t fathom sequence of returns risk when recommending an 8% withdrawal rate.
I make 35% annually on the Nasdaq?? It's possible, but then again I don't just chuck my money In and leave it, I manually place trades and dollar cost average manually, occasionally taking a short position if I'm confident. I prey on the markets repetitive nature, the nasdaq will spend days going up down up down in a range, and every time the dip happens I buy in and take 20 points profit and then wait for dip again and then bang buy another and take 20 points profit. Last couple weeks have been poor tho, its just going down, but it will be good again soon
It is called the Rule of 72 Please Use an investment calculator.
For those familiar with investing concepts this is very basic knowledge.
Example An Initial (one time) investment of $10,000 at 10% per year will grow to
$12,100 after 2 years
After 3 years = $13,310
After 5 years = $16,105
After 7 years = $19,487
Not exactly double of $10,000 but close enough.
The same thing happens with $50k, $500k or $1 million.
Stay Hungry
There is a mindset that embraces debt. While another mindset rejects debt. Very different paradigm’s. But the world is big enough for both mindset 😊
1.4 million is a lot, if you own your home, cars and are in good health. Should be easy to love off of if you have found out what is enough in life for you.
I have way lesser than that, I could lived in different countries for 6 months at a time, eat really well but have a fully paid house walking distance to beach, town and supermarket. I have relocate out of USA and lived in Europe. House insurance $230 a year, car insurance $350 a year, supermarket bill for 1 week $100. Health insurance$110 a month
It is not as much as it seems. It will not last long in San Francisco.
It depends entirely on where you live. In the Coastal cities in the U.S., 1.4M is nothing.
I retired in May and so far have not had to touch my savings. SS and a 1300 a month pension. No debt. Last few years before retirement replaced roof, furnace, water heater, garage doors, carpeting. New car. Still have a kid in college but saved for her since first grade and that comes out of a 529. I'm a fairly simple person. I just go to the gym everyday and socialize with friends and like sports bars. So I don't spend much. Single. Can see where a married couple might want to travel of have a place in Florida. That obviously would cost more and would have to live off the savings. I like the peace of mind of having the savings and not worry about draining it. My moms nursing home was $8000 a month. So those places will drain you pretty quick unfortunately.
Not really I live in San Francisco and have 1.7 M saved at my age 55 and worry I’ll run out eventually.
Hey Dave, i was Dave Ramsey before you went broke in your 20's.
In general, for the last 20 years international stocks have left money on the table vs USA equities.
The key to all these folks being wealthy is save every dollar and dime possible while you're young and drive a Toyota or Honda vehicle until the wheels fall off. When you double your money every 7 years it becomes eye popping numbers.
It's not difficult. And you can index half your money and either active manage the other half or like me, handle my own stock selection and have di e exceedingly well since starting with John Boagle and Vanguard in 1985.
Actually, 7% interest rates are a good thing for savers.
No risk and insured allows you the ability to take the equity risk to boost your returns.
Great info man.
Unlike what is said here, "beat" the S&P does not mean beating its rate of return. It means beating its risk-adjusted rate of return. I highly doubt that Dave's funds have "beaten" the S&P by yielding a 14% CAGR.
I'd like to retire or work less in 5 years, and I'm curious how others split their pay, how much of it goes into savings, consumption, or investments; I earn roughly $250K per year but have nothing to show for it.
For a successful long-term strategy I recommend you seek the guidance of a broker or financial advisor, Who will advise you buy stocks with market-beating yields and shares that at least keep pace with the market for a long term.
Very brilliant idea, I was managing my portfolio by myself using RUclips and Incurred a huge loss which made me hire an advisor. It's been 2yrs already and I have made up to $380K in returns and would pay fully for my 3rd rental property in Ohio by next month.
Please How can one reach this advisor of yours?
I have been working with *SHARON LOUISE COUNT* whose expertise in portfolio diversification is unsurpassed and client-focused, my portfolio has gained so much more since the second quarter
Found her webpage by looking up her name online. She seems very proficient, scheduled a call.
No one beats the market lol. Plus you’re asking people to work till 70. What is the point if I never touch it till 70? Good chance I’ll be dead before than.
According to Dave's theory... you will need the market to be growing in your first few years of retirement... if the market takes a big hit during first few years and you are fully invested in stocks, this becomes a much riskier retirement plan.
I love how Dave talks about the spread on return versus inflation yet ignores it for debt.
Because there isn't any additional risk. Thanks for playing.
Yet you ignore risk that comes with debt.
Levearge is useful. If you don't understand leverage don't use debt
@@tracym8952 "Leverage" is risky. Don't use leverage and then complain when it fails.
@@evr0.904having all of your funds in only growth stock allocations during retirement is very risky
8% withdrawal rate is not safe in retirement, also high fee investments and paying advisors kill returns
Why would I want to live off the interest and die without spending the principle? - Figure it out based on Fixed income and 5-6% interest and let the money run out by the time you're 90 - Chances are you'll be dead at 90
Exactly! This is living and enjoying yourself young is important, some peoples logic is to get so much money and just live off the interest to die
Well if you don't care to leave a legacy at all then no and just want to be selfish and spend it all for yourself(not judging), then yeah there's no point in not spending down to nothing.
@@David-rg6vjNo one said you should not enjoy yourself when you are young. You are only putting away 10-15% of your income away for a few decades. If you can't have fun and enjoy your life on 85-90% of your income, then you have bigger problems than retirement.
Maybe you want to leave something for your children or grandkids. Or you hit the genetic lottery and hit 100 years old you just never know. Also priorities change has you get older. At the end of the day it's your money, blow it on cars and hookers or travel the world you deserve it at that point. lol
“A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just.”
Proverbs 13:22
Did Dave seriously say it's not hard to beat the s&p, 😅 guess he should go teach warrent buffet sonething
Show us the receipts Dave!
Anyone with a net worth of 3 million is closer to Dave than Dave is to Warren Buffet. Lol.
I beat the s&p the past decade 😊
I wouldn't be surprised if some portion of his portfolio beats the S&P500. But he is likely taking more risk by doing so. Small cap and mid-cap may be around 11-12% but international has been lower, so I can't imagine his entire portfolio does 11-12%. Also I'm sure he doesn't count the fees he pays against his return.
@@emoney1231 At his net worth, the fees are near zero. Companies fight to have his investments.
Basic math: (110 [estimated age of dying] -65 [age of retirement] ) * (2500 [monthly expenses] *12 [amount on months]) = 1.350.000. This amount you slowly eat up. If anything is left at the end (aka you die younger than at 110!) that is the inheritance.
If you can do complicated maths (or hire someone to do them for you) you can invest a lower amount safely for a higher return than 0% at the bank or under your matress, as well as if you retire later, die earlier, or scrimp on monthly costs. I cannot change the amount of months. ;)
Dave has solid advice on how to live a financially sound life. Live beneath your means and save for the future and be generous to others. But his financial advice is ludicrous. There isn’t a mutual fund that outperforms the S&P 500 every year. Look it up. Mutual funds over and underperform regularly. Also, a 10% burn rate is going to deplete the portfolio very quickly. If you withdrew 10% in 2020 you probably lost 30% that year. To make up for that loss the stock market has to increase by 45% the following year plus the $100,000.00 burn for that year. 4% burn rate isn’t a made up calculation. It’s so your not 84 years old and working at Walmart.
Dave has a big enough portfolio he can afford mistakes. The average person doesn’t.
Investments double every 7 years on average in the market, unless of course you have your money is an expensive mutual fund that fails to beat the market. Then the average yearly return after expenses is 7-8%. And no you can't choose winning mutual funds. 1/20 mutual funds beat the S&p500 over a decade. Rounded to the closet number, 0% of mutual funds beat the s&p500 over more than one decade. So it is kind of misleading to say your money will double in 7 years when you're recommending a mutual fund.
Indexed mutual funds basically give you the rate of return of the stock market.
@@TShirtAndReeboks That's not what is promoted, though. And besides, why get a indexed mutual fund when you can just get an ETF with lower fees?
@@Aubatron There are many indexed mutual funds with lower fees than ETFs. FXAIX is cheaper than VOO. And FZROX is a no-cost indexed mutual fund.
Let's see how long this doubling lasts.
@@TheFirstRealChewy Almost been 100 years now for the S&P500. Who knows what the future holds, the mutual fund managers sure don't lol.
It depends entirely on where you live when you retire. In the Coastal Cities in the U.S., 1.4M is hardly anything. Cost of living is so high in those regions. Even if you own your home, you'll be shelling out 15K - 20K/year in Property Taxes alone (which is $1250-$1666 per month).
I shake my head at people like you who make statements like 1.4M is hardly anything in coastal cities. What percentage of retirees on coastal cities do you believe have $1.4 million? You can say anything you want when you do quantify things. But once things start getting quantifies and numbers start being provided I see statements like the one you made are full of sh*t. I'm serious. So I will ask..what percentage of retirees households on the coasts have $1.4million that you claim is hardly anything?
"you'll be shelling out 15K - 20K/year in Property Taxes" -- You are so clueless. I live in California and I do not know anyone who is paying property taxes in that amount. Don't ever post an ignorant comment like that again.
@@johnnastrom9400 I thought I was the only one who knew this guy was full of sh*t. We need to call out guys like this so someone who's looking for guidance don't get discouraged by a person like him who obviously knows little about money.
@@johnnastrom9400No, he's right. Property tax, on average, is 0.0132% of a home's value. $15000 to $20000 a year would equate to a $1.13M to $1.51M home. Some states like New Hampshire have no income tax but have higher property tax (0.0173%)
Edit: forgot a "1" and corrected values.
Depends when u buy them. I have 3 houses on the coast of california and combined don’t pay that much in property tax
I just wanna say - Jade has the most beautiful skin. I mean. It's beautiful. Beauty with brains and an attitude and the right attitude and right amount of attitude. You go, girl.
Depends on your vices.
Dave, PLEASE stop telling your listeners that 8% is a safe withdrawal rate. When you take sequence and volatility risk into account, you will find that 5% on an all-stock portfolio might be 'aggressive' for an average retirement. Some very long retirements would be looking at a SWR of 3% to avoid undue risk. 8% is HARMFUL advice! Please watch my podcast episode from last week addressing you on this topic. Calling those who care enough to call you out on this "bananas" won't stop our mission to help you and your listeners on this front!
Ok guy..
Your plugging is bad and you should feel bad
@@casework781 I am serious about this topic. I think it is the most important change that Dave can make to his regular advice, and I want to help everyone avoid undue risk that can cost them their retirement.
@@MrJimmy3459 If you have a counter-argument for me, I am all ears. Debate helps parse out truths from disagreements.
I go 8 percent 😊
Not very many mutual funds beat the market … then they have high maintenance fees.. plus tax implications if the fund managers are trading in and out… I’ll stick with my etfs and index funds .
Smartvestor Pros can't make money selling no load index funds, and if they don't make money, they won't pay DR his fee. So you should buy a managed fund with a heavy up front load.
I love the hair and outfit today Jada!
The fact that your watching Dave Ramsey shows you are interested is finance you might be a student in college looking for advice… your on the right track Dave does a great job showing how to live below your means and invest in your future… start ASAP …you’ll be rewarded later on in life 😊😊😊
For me it's enough
Looking back, I didn't start investing until after I believed it was possible that those investments would ultimately lead to financial independence. Now, 35 years later, I'm financially independent. It's all about believing in the process, living within your means, and adopting delayed gratification. If you have to finance small or emergency expense items (with credit cards), you're not living within your means.
darn good point daveM
I am lucky about to retire in Jan. We have about $250,000.00 in 401k and IRA's. $60,000.00 in CD and $30,000.00 in saving, checking. house and car paid for. Credit card is pay off weekly. Have a lifetime annuity paying $2,000.00 a month. SS = about $2300.00 a month. My budget works with only annuity and ss. No need to use the retirement fund to live off. My budget figure in what if med expense for my wife and I max out of pocket medical. I need be I can work part time and earn up to $21,000.00 and not mess up SS. Im will be 65. For me I want to retire when still young enough to enjoy it.
You dont even need to sell any % every year. Buy dividend stocks that pay you. O, MAIN, CALM, SPG, WPC, VLO, IIPR, NEE, etc
Jade is really great on the show. My fav co-host ❤🔥
answer to this question will always be "It all depends". Depends on where you live. Do you live in San Fran or in the middle of nowhere Idaho? is your home paid off, how will you spend your retirement, are you married? does your spouse work if you have one?, is the million dollar mark cash? or does that include the value of your home and that million is your net worth?
San Francisco is going downhill without brakes, so it could be getting cheaper in the not so distant future.
@@carlosmiro4932 💯
That is not a lot of money if you are on the Coasts. I have more than that plus 1.5 million in home equity. I also have a pension from work. I plan to work until 60. The goal is to retire with a net worth of 5-6 million.
Market has sucked for the past two years, no mutual funds are doing 10% right now
It DRIVES ME CRAZY... when Ramsey says 10-11% returns in ETF's.... This is the 50 year average... certainly NOT going to be even close to that over the next 10 years. I think using 2-6% is realistic.
"It's not hard to beat the S&P..." 😂
Just get a big stick and go over there.
I've beat it the last decade! 😊
@@imveryhungry112 I'm happy for you. Some doing it, however, is not proof that it is easy. Much greater than 50% of professional investment managers fail at this "not hard" thing.
@dillontarr8112 just buy Lockheed Martin democrats war with russia will keep that going up the next 20 years!@
What funds are used instead? Everyone always say they beat the market, but don't divulge the funds..
401K have a required withdraw rate. It can be reinvested, but it has to be taken out and then taxed.
yeah but that's not until you are 70.
@@freedomring3022going to be 75 soon.
@@freedomring3022Actually 72.
Thw "11 percent per year stocks" is overall average. It doesn't consider from 1999 to 2012 where the dow went from 10,000 to 10,000. It also happened 1919 to 1940, and 1966 to 1982. The market has these flat periods, and one is coming
agree.... i don't see 10% returns moving forward for another 30 years.
Depends on how u live. If ur a minimalist, live in a low cost 1 bedroom apartment and have no kids then yeah thats probably enough, but may aswell invest it in the nasdaq and get big returns
The people asking if 1 million will be enough are the same people who will never invest a dime.
Not at all. In the Coastal Cities in the U.S., 1.4M is hardly anything. Cost of living is so high in those regions. Even if you own your home, you'll be shelling out 15K - 20K/year in Property Taxes alone (which is $1250-$1666 per month).
I mean if you make 10% on 1 mil, then you're making 100k a year. If your house is paid for, then I think it's plenty. And it's more than the average American has sooo
Are you also withdrawing 10% of your portfolio balance during down years? 10% it too way too much unless you’re fine eating through principle quickly and that 10% draw getting smaller and smaller
@@Wablestomp2yeah this “10%” figure is absurd. You’re supposed to draw like 4%
It’s not a 10% rule, it’s a 4% rule. You get 10% average earnings, not 10% every year. Some years do good, some not so good. If you pulled 10% out on a year that had 4% earnings, now you balance has declined which affects your earnings in all subsequent years
@@Wablestomp2 It’s princiPAL, not princiPLE.
@@carlosmiro4932sounds the same, good enough.
Im retiring and moving to SE Asia on less than a million, and will live very well. Go where your dollar works hard for you
for some odd reason my S&P 500 Index fund averaged 14.2 % over the past 18 yrs which is the year I switched everything into it. 100% in the S&P500. OK wait, I did pull half of the money out in mid 2008, parked it in bonds and then went back into stocks by March/April of 2009. That gave my portfolio a nice boost as in lost nothing during '08.
Everything else I tried along the years is just wrecking nerves and also yields less.
He's beating the index funds? Come on bro
I have been retired for five years now. Although I've been adhering to the 4% rule, things are challenging as I did not anticipate. 30% of the $600K I invested in st0cks is lost to the market. How can I diversify my portfolio for retirement
Now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I needed a good boost to help my dwindling stock portfolio stay afloat, hence I and came across an expert who helped a lot to grow my port-folio from $275k to approx. $850k in two years.
@@derrickholfman2 This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advsors.
My financial advisor is “Vivian Carol Gioia” I found her on a CNBC interview where she was featured and I reached out to her afterwards via her website
Thanks a lot for this recommendation. I just looked her up, and I have sent her an email. I hope she gets back to me soon.
If you retire at 70 and withdrawal 6 or 7% per year, and live till 90 or so, you probably won’t draw all the way to 0 before you pass away. 1MM should be plenty, but your estate won’t be too big. Dave is pretty risky for suggesting 100% stocks in retirement.
$1.4 million should be plenty if you have a paid off house and car. You and your spouse should draw at least $3,000 per month in social security and you can get 5.5% with no risk on the $1.4 million. That's another $6,400 per month. One would hope that $9,400 per month would be plenty and then some. And the stock market can go long periods with poor returns by the way. Dave makes it sound like each your your value will be 11.8% higher than the year before. Doesn't work that way. Over multiple decades it will do well, but when you retire you may not have that kind of time.
Depending on social security would be a mistake.
What gives u 10% plus interest?
The S&P500 on average
There is nothing wrong about being average, compared to the alternative of many that live close to paycheck to paycheck
Such nonsense. The only way to beat the market is to speculate in single stocks, asset classes or with puts and calls. All historically losers over time. Academic research suggests you loose 2-4% annually vs. indexed funds. As Charlie Munger pointed out, they (Dave) will lose to the market by just about the cost of running the funds
I think you meant to say the only way for average investors to beat the market. Multiple groups of investors have beaten the market without speculating over time with Warren Buffet being one of the most famous.
I don’t think the question should be “is it enough”
It should be, how does it compare to what Dave originally based the numbers off of back 20-30 years.
Every 10-12 years you have to factor in a 30-40% decline
I am a baby boomer and was never taught financial management. I have successfully raised two daughters as a single mother. Because I’m from the hospitality industry and worked for individual proprietors, I’ve never earned enough to save for retirement because I’ve always been caught in the cracks of inflation the system. My husband and I are retired now, we sold everything and left America, recognizing the fact that we’d never be able to live comfortably on our SS income and now we live very comfortably on the beach in Belize. Smartest financial decision I’ve ever made, leaving America and getting off the rat wheel.
Yep. The new American Dream is saving enough to leave the country. I'm looking at Ecuador, for retirement.
@@TheyRiseBand look into Belize. The trade on the dollar is 1:2 Bz., the country is small, clean and we grow our own food, close to Mexico for medical emergencies and the people are very friendly. Not much crime, no shootings or mass murders.
Back in the good old days when most workers received pensions, there wasn't such stress over running out of money or stock market returns. You just kept on getting a paycheck. Combined with social security and some investments outside the pension, you had a relatively stress-free retirement. Many would be served by pensionizing some of their savings to provide guaranteed lifetime income to cover basic living expenses. Then, you are free to be more aggressive with the remainder. I know annuities get a bad rap but a simple immediate annuity gives peace of mind and reduces underspending caused by fears over market downturns and running out of money.
Rob Berger on RUclips back-tested Dave's portfolio in Portfolio Visualizer and it hasn't returned over 12%.
He has no way of knowing all of Dave's portfolio
@@alinatamashevich3354 He did it based on asset class which would get really close. Go Tide!!
My advice is to have 2 years of expenses in cash so as to not to have to touch your retirement savings. Market hasn't been good for 2 years now. I just retired so know what my expenses are. Younger people obviously will have a hard time predicting. I've just had mutual, index and etf's and some reits over last 40 years. Not sure I ever got 13% average over that time. But regardless did the 10% savings and more in my later working years. Goal is to not to have to stress over money when you are retired. So take that 10 to 15% haircut thru out your working years.
Market has been pretty good to me this year.
The 2 year cash cushion is very very sound financial advice. Some actually recommend
2 years living expenses in cash. Plus 3 years living expense in bonds and treasuries
The rest in equities
Stay Hungry
@@ariefraiser140 it made back what we lost last year but in general over the past 2 years its equal. Like last year it lost 20 percent and this year it gained like 20 percent so the actual gains are very low. THANKS JOE BIDEN!!!
@@imveryhungry112 If it made back what it lost then my statement stands the market hasn't been bad for two years.
@@ariefraiser140 Numbers arent emotion my friend. S&P was negative 20 percent in 2022. And positive 15 percent this year. So far since jan 1st 2022 youve lost 5 percent if you were invested that whole time. Thank joe biden for that.
I apprecaite Dave's analysis on many many many aspects of finance but investing is not 1 of them. Beat the S&P long-term, OK, lol
I follow his advice , works perfect.
I put 12% of my pay period to mutual funds at 80% equity 20% bonds. And 9% myself +11% employer = 19% to a pension plan. Altogether 20% of my pre tax income and 12% comes from my employer match goes to investments for retirement. I have money saved up I have no idea what to do with so I lock them into long term GICs and some stocks might become a landlord at some point. I hope I live a long life into retirement.
Yes, as long as the 1M is not 800k house and 200 in 401k because that would be considered a golden cage.
Are you referring to $800K in equity?
Many folks are doing just that along with social security $$$ at retirement age or alternative income such as rentals, part time job etc. although if one takes 4% a year from a million dollar portfolio (which is conservative to keep from running out of money) that's only $40,000, and you still have to pay taxes unless it's in a Roth IRA, and don't forget if you are paying a financial advisor that can be an additional 1 to 1.5% in fee's ($10-$15k)
Having a financial advisor take 25% of your retirement income like Dave suggests is crazy
$2 million is a good starting point. Couple that with pension and social security and you might be fine.
@@mocheen4837 In your example, they will be doing extremely well. At 4% that's some $80,000 from the nest egg and maybe $20,000 single, $40,000 married or more from Social Security.
Average Social Security is $1800 right now or $21,600 per year single, $43,200 married. For many folks they need maybe $60,000 a year to live on and do some fun stuff. They don't need to pull very much out of their investments to cover that difference and it could be under $1 Million nest egg.
@@mocheen4837 Why the heck you need that much for? People must blow money like water in retirement. I get 2300 SS a month and only have a 150K in my IRA at 62. Wife gets 980.00 SS. Home is paid, taxes are 920.00 a year. Three cars, one boat, nice garage to play in. Own the lot beside me about 1 acre. I made 1.8 Million working until 62. Why would I need that much to retire. I have everything I want and a home worth 220K paid. I uses the ACA for insurance until 65. I guess people just can't stop spending and live high a mighty and worry about working until 70 and getting that 2 million for what. You only live once!
1. You have to got 2nd citizenship /w 0% tax rate on dividends and capital growth
2. Renounce US citizenship
3. Make $6 million at least for $25K gross /month (average dividend/interest rate is 5%/year) to live almost anywhere in the world.
“Not hard to beat the s&p” is one of the most foolish things I ever heard from anyone. 95-97% of actively managed mutual funds fail to outperform the market if you look at a 10 year period. Yes, it’s easy to beat the market one year or a couple years, but what does that matter? You’re on a 30+ year horizon, so you need to be looking long term. The irony of him making fun of index investors as being “average” is something.
Additionally, once you hit retirement you are being reckless if you still have 100% of your money in stocks. I’m very aggressive and even I don’t plan to do that - at most, I’ll have half in equities. So that makes a 12% yearly return even more unrealistic.
The 8% withdrawal rate is dangerous too. The stock market doesn’t return 12% each year. It’s up 23%, down 14%, etc. imagine you retired in 2007 with $2 million and took out 160k. Sweet. Then 2008 happens. Whoops. You’ll never recover.
I had an argument with some co-workers who kept telling me that I couldn't retire on $1,000,000 cash. I proceeded to show them the math where if I worked until age 62 at my current income rate, I would not earn $1,000,000 in my entire life. Yes, I worked full-time. They would just blow off the point I was making.
They were dumb.
I think your math is off or you're grossly underpaid. Even at $15/hr (about $30k/year) you'd earn $1 million in just over 30 years, and that's assuming you never get a raise.
If you include social security, most people retire on less than a million.
The average individual salary in my state (Pennsylvania) is almost $60,000 a year so if I took that 1 million dollars and just lived off that alone putting the invested growth aside it would last me 16 years in retirement at 67 years old if I took out $5,000 a month lasting me until 83 years old and that's not even including social security payments and the fact that I'm not going to have very many bills to pay either in retirement. So theoretically 1 million dollars could last you until you're 90+ years old depending on your cost of living in your area, but that's also not taking into account what quality of life this will bring, but approaching 90 years old one isn't going to be lighting the world on fire.
I wish Dave would share the mutual funds he is in! Who doesn’t wasnt an average of 13%😁
If you use a Smartvestor Pro, that’s how you can invest like Dave who also has a financial advisor.
you do know you can do your own research right? you don't need Dave to tell you everything
He's in American Funds mutual funds.
@@situated4 Who told you that?
@@freedomring3022 I’ll go with the successful advice of a multi-multimillionaire instead of you. My Smartvestor Pro doubled my investments in 7 years. So now I have NO debt including my new home. No debt gives me way more money to live on - including paid for real estate investments. Praise the Lord!
So, his recommendation is to have everything in stocks.. that’s pretty risky. Also, you are going to have down years. Withdrawing 8 percent is very risky.
It's amazing how people smart and committed enough to have 1.4m in a 401k worrying about having enough to retire.
It doesn't take a Ph.D. to develop a plan to survive from that and a small SS payment.
What they really need to worry about are cons who try to convince them to worry and to give them (the cons) money to "fix" it.
What’s the point of living off the interest only and leaving the principal untouched? You can’t take it with you when you die.
A lot of people want to leave an inheritance. We also don't know when we will leave this earth, so it's wise to prepare for being here longer. Average life expectancy is increasing and we need to have enough to get well into our 80s and 90s.
“A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just.”
Proverbs 13:22
@@Mavryck_Tha_Myghty , Exactly but I must add that if you raise your children in the fear of God, they will do well too and you don't have to leave a lot.
Unexpected expenses might come up. Or you might live longer than expected.
@@Mavryck_Tha_Myghty My children have already received their inheritance: $0.00 in student loans, and they’ll get whatever the house is worth when we die. I’m done with my children’s inheritance.
Wow 8% eh? And here I am feeling nervous pulling a little under 3% in a down year.
Please don't do 8%
Please do not listen to Dave and visit a proper financial advisor specializing in retirement withdrawals. 3-5% withdrawal should be your range depending on age and retirement goals. 8% is an absolutely insane withdrawal rate if you want your portfolio to last 30 years or more. If you're ok with it lasting about 15 years then 8% is ok.
@@ariefraiser140 Sarcasm guys, I already knew that :p
@@TheRosswise You never know with Dave Ramsey listeners. I've ran across too many that take everything he says as gospel.