I lost over $300,000 investing in $GME and $BBBY, which was very depressing. Now, with low risk tolerance, I want to invest wisely. I’ve been researching index funds, ETFs, mutual funds, and growth stocks. I want a simple portfolio with about 3 holdings. If you were in my position, where would you start?
I started at age 42 with about $18,800 which is now worth about $1.2M at age 50. Would be happy to share how, and it was definitely not index funds (pablum advice for the masses), but by partnering with a financial advisor. I've been with mine for the past 8 years and have seen why esteemed investors highly seek their expertise.
Melissa Elise Robinson is the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Once you make enough to cover basic necessities, it's much *easier* to save 25% as a high-earner, regardless of your tax bracket. My wife and I are both high earners and we basically bank one income and live off the other. It's easy. We simply avoid the two income trap and live a single income lifestyle which is still very nice. What the caller is really asking is... "How can I save 25% and still live an opulent lifestyle that matches my lofty expectations given my high income." That's an entirely different question.
$460k per year is a normal salary for tech workers with 5-6 years experience in Silicon Valley. If that’s his situation, everyone he knows makes the same amount. Maybe he just wants to know how to scale advice that’s relevant in normal places like Nashville or Pittsburgh to crazy places like SF or NYC. The nice thing about rules given in percentages is they apply to most everyone.
It's not that hard. 25% is $115,000. The first $22,,500 goes into your 401k pretax ($30k if you are 50+). You pay taxes on $437,500. Say 45%, your take home is $240k. $92,500 in investments and you can still spend about $150k.
Yeah people don’t realize how insane the taxes are on high earners that don’t have good write offs. If this person lives in San Francisco or NYC (which is probably true unless they’re an entrepreneur), the cost of living makes 150k take-home look modest when avg rent for a comfortable home is 50k/yr. I get why he’s wondering whether this is “extreme” given he makes half a million. You’d think he could splurge no problem but one bad money habit or major purchase could send him into living paycheck to paycheck. If I were him I’d simply plan to retire outside a high cost of living city, and lower my savings rate to 20%. Even at 10% he’ll do better than most of us 🤷🏽♂️ going homeless is not going to be an issue. Go on vacations or buy something nice while you still can, I say!
@@stocksxbondage If writer rents, even in the Bay Area, the writer is not paying more than $5k per month unless it is really extravagant. Unless he bought his house in the past 18 months, even a $1M mortgage at 4% is less than $6k/mo with property taxes and insurance. Sure, you could buy a $2M bungalow in Atherton today, but that's not what any rational person would do.
@@tdaveniii 50k/yr = $4,166 / month Yes $2M home sounds crazy to most people, but in relation to his income, it’s like someone earning $75k buying a 325k house (which is about the median income and lower than national average house). I’m just saying I understand why he’s asking the question of ‘why are things so frugal for me in comparison to people making less?’ It’s because he’s paying a tax bill higher than the avg annual salary! Then saving 25% on top of that and likely living in a high cost of living city. You’d expect to live like a king on 460k.
@@justthebrttrk I live in Houston (a notoriously low cost of living major city) and our rent is 2300/month. Rent in SF and NY is $3000-4000/month for a 1 bedroom (36-48k/yr). If your rent is 24k/yearly, you highly underestimate the affordability where you live. Your rent is 2000/month and the avg rent nationwide is about 1600/month. You either have extremely cheap rent or your county isn’t as expensive as you claim. One of the two. The point is if you earned 400k, you’d expect more than 100k to play with. But when you do the taxes and savings, that’s all that’s left. Yes my wife and I also live just fine on less, but doesn’t mean high earners have to be subjected to our sub 100k lifestyle. Like how Mr Cambridge gets jealous that someone else would complain about having less than money to spend 🤭
Where you live makes a huge difference in how much of your salary you can keep and in your living expenses. $460k is a lot where I live. It’s not in San Francisco.
I'm 49 and earn about £500k ($550,000) per year and save about 30%, I've been reading alot of articles mentioning how worthless 'cash savings' are in this current unstable economy. Do you suggest I invest my savings in real estate, stocks or Gold?
@colleenodegaard Agreed, instead of following rumors or a hearsay, I adopted the service of a CFP early 2020 amid covid-outbreak and so far, I've attained my most significant financial milestone, barely 15% short of $1m after subsequent investments.
@840trk your financial planner is remarkable! how can I get in touch please, if this is not much i'm asking? I have been managing my portfolio for a few years now, but nothing seems to improve
I take guidance from a California-based certified advisor ''Monica Selena Park'' she's quite a sought-after financial representative and handles clients portfolio from different parts of the world, simply research her and let me know what you think
excellent share. just looked her up on my iPad thankfully her page came up after scrolling a bit and i was able to schedule a free session with her , she seems first rate
I hear "Monica Selena Park" is a fraudster who posts spam comments using multiple fake RUclips accounts in an attempt to lure gullible victims. Any truth to those rumors? @@fortunino
You’d be right. Basic necessities don’t change much, except for housing, they just don’t. I don’t need 400% more food because I make 400% more. Gas doesn’t become less efficient because you’re broke, college loans don’t exponentially increase. The more you make, the more room you have to do anything.
Long time viewer/ listener. Have enjoyed your content for many years now. First time I have ever left a comment because Bo's facial expression was one of the best I have ever seen. Keep up the great work guys. Thanks for all you do!
Not disagreeing, but if you live in California, you can probably keep half after taxes, so 230k. Property values are such that your mortgage might be close to 100k. Saving 115k leaves you with 15k for car expenses, food, utilities, and clothes. You probably can save 115k per year, but it’s not easy.
There is something that I am missing in the math. If he pays 40% in taxes between state and federal, then saving 25% of gross income is 40% of his take home income. Even if he did his, wouldn't that not be replacing his income for retirement but actually be a tremendous raise in retirement since he would not be saving anymore and his tax situation would likely be less? I agree that the saving is possible but what I wonder is whether this makes sense to save that much to get a raise in retirement.
I dont make anything near this guy, but i do find 25% to be a lofty goal for me. My current budget leaves more like 10 to 15 percent after bills, good, childcare etc. Granted, once the childcare and car payment are gone i will be closer to 25%.
The more you make, the easier it is to save. If you make 2000 a month, saving 25% leaves you 1500 a month before tax. With living expenses being high at this time, this can make budgeting hard. But if you make 10,000 a month, saving 25% leaves you with 7,500 before taxes. Unless you are trying to live a lavish life-style, that is more than enough to live on and enjoy life.
I would like to hear your justification for saving 25%, which is significantly higher than others recommend. Sure, if you want to retire early, you may need to save far more, but you don't indicate that is why you suggest 25%.
They have many times before. They have a heat map showing that if you want to reach retirement at with enough funds to at least replace your full income 25% is the minimum you need as long as you start before you're 35. So a 35 year old with $0 for retirement can still make it if they start saving 25%. If you start younger you don't need quite as much, but you'll be in great shape if you do.
I have been listening since before Bo was hired and I’ve never heard it. Even though I’ve listened to many podcasts, I have not listed to them all. Although helpful, your reply doesn’t actually answer my question. Your reply in no way provides justification for 25%.
He better invest that much because depending on his profession he can get let go without any notice and to go to another place that makes that much would probably offer you lower
There are parts of the country where you wouldn’t be able to find an apartment for less than $4k per month. I’m glad I don’t live in one of those places.
gosh, lets say he only takes home 230K after taxes, and he saves 115, and lives off of 115... gosh, he still has more money than everyone grossing 115, which is still pretty good for 1 income... this is what i would do, then retire early.
There are places where a modest rambler on a small lot runs about $2M. Your mortgage would be more than $115k per year. $460k is a fortune in most places. It’s a fairly typical early career wage in Silicon Valley. Tech workers have all the same problems as workers in other areas, it’s just that the numbers are all multiplied by 10. Yes, they can save 25%, but it’s hard for them just like it would be hard for a young accountant in Nashville making $50k per year.
@@NotThatKraken A young tech worker making $460,000 can rent a very nice place for $5,000 per month in the Bay Area (with a roommate in the City, less than that), cutting that mortgage cost in half and saving all the headaches and expense of ownership.
It’s possible he works in a very expensive place and honestly wants to know how to run his finances properly. I appreciate that their answer wasn’t as condescending as it could have been. 25% is hard at any income level, which is the point.
You can pay about that amount depending on where you live in the US. The combined marginal Federal, State, City and FICA tax for a NYC resident is about 48% for somebody earning $460k.
I think you’re being a little rough on him. You don’t know what his situation is if he’s living in New York City paying 37% federal tax, 8%, state, tax and city tax on top of that he’s paying close to 50% if not more in taxes. Plus the cost of living in the city if you -115 off of the 230 after taxes that leaves him 115 to live on in the city which is barely doable unless you’re living very sparsely.
$115,000 would be 42% of his take-home pay after paying 40% in taxes! The taxes are killing him. Great testimony for how terrible our tax system is in the United States. Get out from under the oppressively taxed W-2 income and figure out a way to convert it into investment or business income as soon as possible.
@@chemquests not at all. At no point should anyone have 40% of their earnings stolen by the state. Especially with the widespread waste, corruption and incompetence shown by the thieves taking it. We need a small, basic and simple government. And a very small amount of tax is needed to fund it. But what we have now is a bloated, absurdly oppressive and fiscally bankrupt system that penalizes success, hard work and accomplishment through increasingly higher percentages of taxation.
I lost over $300,000 investing in $GME and $BBBY, which was very depressing. Now, with low risk tolerance, I want to invest wisely. I’ve been researching index funds, ETFs, mutual funds, and growth stocks. I want a simple portfolio with about 3 holdings. If you were in my position, where would you start?
investors like you should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder.
I started at age 42 with about $18,800 which is now worth about $1.2M at age 50. Would be happy to share how, and it was definitely not index funds (pablum advice for the masses), but by partnering with a financial advisor. I've been with mine for the past 8 years and have seen why esteemed investors highly seek their expertise.
Hello, I'm interested in trying this out. Who is your advisor, and how can I contact them?
Melissa Elise Robinson is the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Once you make enough to cover basic necessities, it's much *easier* to save 25% as a high-earner, regardless of your tax bracket.
My wife and I are both high earners and we basically bank one income and live off the other. It's easy. We simply avoid the two income trap and live a single income lifestyle which is still very nice.
What the caller is really asking is...
"How can I save 25% and still live an opulent lifestyle that matches my lofty expectations given my high income."
That's an entirely different question.
Literally one of the only ways I can see saving 25% being hard for this guy is if he has like...10 kids...and 5 of them are in college/grad school.
Approx 13,500 per month to live after aggressive assumption for tax and 25% savings.
This guy just wants everyone to know he makes $460K! 😂😂😂
$460k per year is a normal salary for tech workers with 5-6 years experience in Silicon Valley. If that’s his situation, everyone he knows makes the same amount. Maybe he just wants to know how to scale advice that’s relevant in normal places like Nashville or Pittsburgh to crazy places like SF or NYC. The nice thing about rules given in percentages is they apply to most everyone.
@Not No it isn’t, that’s absurd. Give me literally any link that comes close to that. One job posting that matches what you said.
You’re just jealous
@@nwj03a That's about an E5 at Meta (levels.fyi), that's two promotions in 5-6 years. Maybe challenging, but not absurd to me.
Humble brag
It's not that hard. 25% is $115,000. The first $22,,500 goes into your 401k pretax ($30k if you are 50+). You pay taxes on $437,500. Say 45%, your take home is $240k. $92,500 in investments and you can still spend about $150k.
Yeah people don’t realize how insane the taxes are on high earners that don’t have good write offs. If this person lives in San Francisco or NYC (which is probably true unless they’re an entrepreneur), the cost of living makes 150k take-home look modest when avg rent for a comfortable home is 50k/yr. I get why he’s wondering whether this is “extreme” given he makes half a million. You’d think he could splurge no problem but one bad money habit or major purchase could send him into living paycheck to paycheck.
If I were him I’d simply plan to retire outside a high cost of living city, and lower my savings rate to 20%. Even at 10% he’ll do better than most of us 🤷🏽♂️ going homeless is not going to be an issue. Go on vacations or buy something nice while you still can, I say!
@@stocksxbondage If writer rents, even in the Bay Area, the writer is not paying more than $5k per month unless it is really extravagant. Unless he bought his house in the past 18 months, even a $1M mortgage at 4% is less than $6k/mo with property taxes and insurance. Sure, you could buy a $2M bungalow in Atherton today, but that's not what any rational person would do.
@@tdaveniii 50k/yr = $4,166 / month
Yes $2M home sounds crazy to most people, but in relation to his income, it’s like someone earning $75k buying a 325k house (which is about the median income and lower than national average house). I’m just saying I understand why he’s asking the question of ‘why are things so frugal for me in comparison to people making less?’ It’s because he’s paying a tax bill higher than the avg annual salary! Then saving 25% on top of that and likely living in a high cost of living city. You’d expect to live like a king on 460k.
@@justthebrttrk I live in Houston (a notoriously low cost of living major city) and our rent is 2300/month. Rent in SF and NY is $3000-4000/month for a 1 bedroom (36-48k/yr).
If your rent is 24k/yearly, you highly underestimate the affordability where you live. Your rent is 2000/month and the avg rent nationwide is about 1600/month. You either have extremely cheap rent or your county isn’t as expensive as you claim. One of the two.
The point is if you earned 400k, you’d expect more than 100k to play with. But when you do the taxes and savings, that’s all that’s left. Yes my wife and I also live just fine on less, but doesn’t mean high earners have to be subjected to our sub 100k lifestyle. Like how Mr Cambridge gets jealous that someone else would complain about having less than money to spend 🤭
always love it when Brian looks away cause he's smiling.
He's got a spending problem. I make less but save more than what 25% of his earnings would be.
There’s gotta be strippers and cocaine involved here
Where you live makes a huge difference in how much of your salary you can keep and in your living expenses. $460k is a lot where I live. It’s not in San Francisco.
I'm 49 and earn about £500k ($550,000) per year and save about 30%, I've been reading alot of articles mentioning how worthless 'cash savings' are in this current unstable economy. Do you suggest I invest my savings in real estate, stocks or Gold?
@colleenodegaard Agreed, instead of following rumors or a hearsay, I adopted the service of a CFP early 2020 amid covid-outbreak and so far, I've attained my most significant financial milestone, barely 15% short of $1m after subsequent investments.
@840trk your financial planner is remarkable! how can I get in touch please, if this is not much i'm asking? I have been managing my portfolio for a few years now, but nothing seems to improve
I take guidance from a California-based certified advisor ''Monica Selena Park'' she's quite a sought-after financial representative and handles clients portfolio from different parts of the world, simply research her and let me know what you think
excellent share. just looked her up on my iPad thankfully her page came up after scrolling a bit and i was able to schedule a free session with her , she seems first rate
I hear "Monica Selena Park" is a fraudster who posts spam comments using multiple fake RUclips accounts in an attempt to lure gullible victims. Any truth to those rumors? @@fortunino
I'd even argue that at higher income levels, you should have an even higher savings rate.
You’d be right. Basic necessities don’t change much, except for housing, they just don’t. I don’t need 400% more food because I make 400% more.
Gas doesn’t become less efficient because you’re broke, college loans don’t exponentially increase.
The more you make, the more room you have to do anything.
Long time viewer/ listener. Have enjoyed your content for many years now. First time I have ever left a comment because Bo's facial expression was one of the best I have ever seen. Keep up the great work guys. Thanks for all you do!
Not disagreeing, but if you live in California, you can probably keep half after taxes, so 230k. Property values are such that your mortgage might be close to 100k. Saving 115k leaves you with 15k for car expenses, food, utilities, and clothes. You probably can save 115k per year, but it’s not easy.
I make a good bit more than this guy, but I've also kept my costs low. I'm saving 50% of pre-tax/75% of post-tax
There is something that I am missing in the math. If he pays 40% in taxes between state and federal, then saving 25% of gross income is 40% of his take home income. Even if he did his, wouldn't that not be replacing his income for retirement but actually be a tremendous raise in retirement since he would not be saving anymore and his tax situation would likely be less? I agree that the saving is possible but what I wonder is whether this makes sense to save that much to get a raise in retirement.
Not "even with"...it's "especially with".
I dont make anything near this guy, but i do find 25% to be a lofty goal for me. My current budget leaves more like 10 to 15 percent after bills, good, childcare etc. Granted, once the childcare and car payment are gone i will be closer to 25%.
The more you make, the easier it is to save. If you make 2000 a month, saving 25% leaves you 1500 a month before tax. With living expenses being high at this time, this can make budgeting hard.
But if you make 10,000 a month, saving 25% leaves you with 7,500 before taxes. Unless you are trying to live a lavish life-style, that is more than enough to live on and enjoy life.
I would like to hear your justification for saving 25%, which is significantly higher than others recommend. Sure, if you want to retire early, you may need to save far more, but you don't indicate that is why you suggest 25%.
They have many times before. They have a heat map showing that if you want to reach retirement at with enough funds to at least replace your full income 25% is the minimum you need as long as you start before you're 35. So a 35 year old with $0 for retirement can still make it if they start saving 25%. If you start younger you don't need quite as much, but you'll be in great shape if you do.
I have been listening since before Bo was hired and I’ve never heard it. Even though I’ve listened to many podcasts, I have not listed to them all. Although helpful, your reply doesn’t actually answer my question. Your reply in no way provides justification for 25%.
He better invest that much because depending on his profession he can get let go without any notice and to go to another place that makes that much would probably offer you lower
Clearly a troll question. I easily save 50% of my 80k ish gross.
There are parts of the country where you wouldn’t be able to find an apartment for less than $4k per month. I’m glad I don’t live in one of those places.
Good job. You sound very disciplined with money
@Not Where?
Not only should you, it should be vastly easier than someone making 100k/year. If you cant do it you need to adjust your lifestyle.
I make 700k pretax and save 35% of it
Do 50% after taxes
gosh, lets say he only takes home 230K after taxes, and he saves 115, and lives off of 115... gosh, he still has more money than everyone grossing 115, which is still pretty good for 1 income... this is what i would do, then retire early.
Don't forget that the first $22,500 goes into the retirement account pre-tax. . .
There are places where a modest rambler on a small lot runs about $2M. Your mortgage would be more than $115k per year. $460k is a fortune in most places. It’s a fairly typical early career wage in Silicon Valley. Tech workers have all the same problems as workers in other areas, it’s just that the numbers are all multiplied by 10. Yes, they can save 25%, but it’s hard for them just like it would be hard for a young accountant in Nashville making $50k per year.
@@NotThatKraken A young tech worker making $460,000 can rent a very nice place for $5,000 per month in the Bay Area (with a roommate in the City, less than that), cutting that mortgage cost in half and saving all the headaches and expense of ownership.
Short answer, "YES!! OMG YES!!"
Ridiculous. Congrats on your $460K a year! Now go hire a financial advisor. Money Guy folks please don’t waste time on the braggers.
It’s possible he works in a very expensive place and honestly wants to know how to run his finances properly. I appreciate that their answer wasn’t as condescending as it could have been. 25% is hard at any income level, which is the point.
Well, this guy asking the question is right, in my country, we pay 49% income tax...
Still over 200k net income. Her (or his?) Enemy is called: Lifestyle-Inflation
You can pay about that amount depending on where you live in the US. The combined marginal Federal, State, City and FICA tax for a NYC resident is about 48% for somebody earning $460k.
I think you’re being a little rough on him. You don’t know what his situation is if he’s living in New York City paying 37% federal tax, 8%, state, tax and city tax on top of that he’s paying close to 50% if not more in taxes. Plus the cost of living in the city if you -115 off of the 230 after taxes that leaves him 115 to live on in the city which is barely doable unless you’re living very sparsely.
Sounds to me like he’s living WAY above his means, what a waste when you make this much!
I am so excited!
What’s your reservation on RBLX, U, and ONON?
I need that salary a year 🙏🏻.
They don’t have it, that’s 99% level income, and those people don’t ask podcasts and RUclips channels.
Lifestyle creep is a thing.
He should be investing even more. At least 50%, maybe more. Could retire in a few years if he controls his spending
@@agustino42491 after tax, but if in a traditional 401k that will reduce the taxes significantly
Just get paid less dude! Then it'll be easier to save more money.
$115,000 would be 42% of his take-home pay after paying 40% in taxes! The taxes are killing him. Great testimony for how terrible our tax system is in the United States.
Get out from under the oppressively taxed W-2 income and figure out a way to convert it into investment or business income as soon as possible.
Don’t forget that CA state income tax rate is around 10% at that income level.
@@NotThatKraken 💯
@@NotThatKrakeni think it's closer to 13% with some special taxes they add on
Still a lot of net take home relative to everyone else. I see this as the tax system working as designed; this is how it should look.
@@chemquests not at all. At no point should anyone have 40% of their earnings stolen by the state. Especially with the widespread waste, corruption and incompetence shown by the thieves taking it.
We need a small, basic and simple government. And a very small amount of tax is needed to fund it. But what we have now is a bloated, absurdly oppressive and fiscally bankrupt system that penalizes success, hard work and accomplishment through increasingly higher percentages of taxation.