Are Americans Getting Poorer? (Here is the Data)
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- Опубликовано: 3 окт 2024
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I had to work two jobs to pay for college in 2016. It was absolutely exhausting and depressing.
WHO SHOULD I THANK IF NOT FOR RAUL THAT FIXED MY CREDIT, I WAS SO SAD AND UNHAPPY HAVING 430 FEW WEEKS BUT I'M PROUD TO HAVE 810 TODAY THANKS
Raul got my credit score to 820 within 2 weeks! so amazing! do you know you can get yours done as well!
to reach raul
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Any chance we could see a military special one discussing our standard pension plans and savings. Including VA benefits, health care. Maybe GI bill scenarios. It would be a lot of research but would be greatly appreciated from us in the services. Thanks
Yes please
This is a great idea!
Yes !! Our NCOs don’t do a great job at this. There are resources but it’s hard to understand!
@@alexandraramirez6545 I wouldn’t give them too hard of time-nobody teaches them either most of the time! It can be difficult to unravel all the benefits, but I think more important, is how to apply the Money Guy principles when you have a pension, provided housing, periodic special pays, TSP, contract bonuses, income tax free periods (deployed), special tax exemptions, and even separations. Sometimes those bend the rules, and when they all hit at once, they can REALLY bend the rules to the extent that it’s hard to make the right choices.
very timely suggestion for Veteran's Day Weekend ----- this should be part of our thinking however throughout the year...
Thank you for your service --- and best wishes to you and your family.
It’s crazy how anti-climatic breaking $1m in net worth is. For me the numbers changed and the day went on. My biggest regret is not starting earlier. I only got serious about it a few years ago and only started tracking the number in 2020.
Facts. I didn't notice. I had to look up the year and month in Personal Capital a few weeks ago lol. I could only estimate 2017 or 2018.
Randomly came across this RUclips show and I'm so glad I did. This one episode contained a boat load of great information. So much so that I'm listening to it again for the second time today! Thanks guys. You've got yourself a new subscriber!
Welcome to the Money Guy family 👍
Same, probably the most useful video i have watched in a long time. I also appreciate that this isn't about left or right but only facts on money and building wealth!
Great hosts, even better information.
The issue of inflation in housing is worse in the big cities. I'm in NYC. Rents and home prices have gotten very high. I know older people who passed away and were renters their whole lives. They die and have nothing. Long term renting is a ticket to long term poverty.
This is historically not true. The stock market has historically out performed Real Estate (once property taxes are accounted for). Our perspectives on this are skewed because of the run of Real Estate since the 2008 crash. Using Historical data, most people would be better off financially if they found a stable renting situation, and put the money they would have spent on a down payment/mortgage/home repairs into the stock market. The tricky issue is the "stable" part; being forced to move is a huge downward pressure on building wealth. Also; hindsight is 2020 on which house to buy. Upstate New York is seeing huge emigration, driving the price of houses down considerably. Inner cities were very undesirable in the late 1980s and early 1990s, and we are still seeing the run from then.
Wow I haven’t kept up with the channel in like a month but I didn’t realize just how close y’all are to 200k less than one year after hitting 100k… talk about exponential growth!
200k now!
These guys are AWESOME!!! It’s the best financial show in America.
One thing that you are missing when you talk about the increased cost of attending universities. With the available of EASY student loans, the lifestyle of the average student has also skyrocketed. When I started college in 1977, there were almost no student cars on campus. Now it is frequent. Dorms at my school were cinder block "plain jane" buildings. Now, MOST major universities are building luxury dorms. For me, all my money went to books, and room and board and maybe $10 per week.
The bottom line is that the Fed MUST RAISE RATES as soon as possible. They are allowing the wealth gaps to increase, pricing out poor/middle class from home ownership,and creating bubbles larger than Jupiter in the markets. Unless they raise rates (despite the economic pain it will cause) this fake reality of hyper inflated assets will continue to run perpetually.
It's always been hard to get ahead. Hard work and determination is just the start. Making a good living helps a lot but not necessarily everything. Spending less than you make and investing in tax advantage accounts over a long time is my recipe for success. Deferred gratification and force scarcity are the fundamentals. A little luck doesn't hurt either. None of this sounds fun but being old with money is way better than old and broke. The money guys have helped so much over the years. Thanks you.
@Elegua Speaks its not a myth just because you failed at hard work doesn't it doesn't work for others
@Elegua Speaks Hard work doesn't guarantee getting ahead, but without it, you don't stand a chance; quit making excuses
@Elegua Speaks What's your solution then? Live in a cave, eat berries and wear fig leaves? Even if you expect the government to give you "free" stuff, someone still has to work hard to pay for it.
@@robertsleeth861 Well, bust that myth: Riot, burn, shoot, and otherwise destroy the "rigged system" until you get what you want! Is that your solution? 💥
@@johnc2438 Hey um Robert was making fun of the first guy who was saying hard work is pointless
A recent study came out and showed that supply side economic policies have transferred 75 trillion dollars away from employees to investors since 1975. A recent Ivy League economic study showed that if the average wage in America adjusted for inflation kept pace with the average American workers growing productivity since the mid 70’s, the average employee would be making 125,000 a year. Even if one could argue this was fair and merit based, which I don’t think anyone can, a capitalist economy thrives off the spending power ie…consumption of the masses. The shift outlined has gutted the working and middle class in America.
Consumption still happens, but it's based off credit 💳
@@Striker50_ true people spend on credit, which helps with growth, but it hides the underlying economic issues. The wealthy and large corporations have waged a very successful 4 decade economic war against the middle and working class using supply side economics to redistribute trillions of dollars in wealth.
@@MrZola1234 Credit is the only reason consuming continues, otherwise we'd have a collapse
@@Striker50_ not if we got rid of supply side economics.
@@Striker50_ The biggest drug of our era.
Over the last 20 years I lived below my means and saved 130,000 and invested that in real estate for 5 properties. Then borrowed against the value of the property over time and bought Bitcoin. If I had invested my savings in 401k growth stocks I’d have about a tenth as much.
My point is saving is important, but how you invest it is a huge multiplier
Investing is the best.
Investing makes you a millionaire if u r consistent educated sacrifice and don’t touch your 41k and religiously put 25% of income at least in 41k and ROTH. I doubt not sure don’t quote me if social security will be available in years to come . Live on less then u make . Get out of debt ASAP. Don’t live like the Jones .
“THE SACRIFICES YOU MAKE TODAY ;WILL SET YOU UP FOR A BETTER TOMORROW “
Army of green dollars is the best if u just save it in a bank it won’t make u a millionaire the key is to invest and make that money multiply .
Agree 💯
We should always read at least one book a month on money . Warren buffet says rule number one of money is never to lose money . Rule number to go back to rule number one .
There are still ways to do college. Get a job with tuition reimbursement. Disney, Target, Walmart does this for all employees now. Go to a community college for two years and transfer. I agree it is harder though and driven by letting people borrow more.
And yes with mortgages. Rent from the bank or you paid a lower price. The run down in interest rates only allowed the people who could to borrow more and keep others out of assets. This really ramped up with Clinton and Greenspan bailing out the tech bubble bursting. And Silicon Valley fashions itself as a social warrior. SMH.
I am grateful for your high- quality content, as ever. (Now, here's a humble- brag that ain't even humble): My mortgage interest rate is Zero Percent! Paid that sucker off! --And talk about a great way to turbo- charge your savings rate!
I know these are repeated contents but I love it. I love the title too. So many people I know in my life are fake rich
Almost 20% of Americans lost their savings while billionaires gained over a Trillion in their net worth so i'd say yes they are getting poorer
All the people with investments went up a lot also I hear
@@JB-nw1ej if you lost all your savings you most likely don't have investments
Someone locked down the economy for months, and it wasn't billionaires. Why does everyone get tricked into blaming the rich for things caused by government ? As long as rates remain unnaturally low, the rich will get richer VERY fast. But the rich don't control interest rates, either. This is a purely government created problem. They should have locked down nursing homes, and kept the economy open with masks and precautions.
@@sprinkle61 It's the perpetual question. Rich create jobs and improve standard of living.. government screw it up through printing money and socialism.. then rich get blamed? Lol
That blue polo shirt is awesome. Could you provide the link to the place where you got it? Honest question. Thanks.
Excited to see this type of content available so easily today. I am Brian's age and, fortunately, got some decent guidance from my folks at that age. However, it was virtually impossible to get professional guidance in the pre-internet days because an advisor didn't want to talk to you if you didn't have a significant amount saved.
I would like to take the advice to not waive contingencies and so on, unfortunately here in the Seattle area you're generally not competitive at all if you don't, and things don't seem to be improving
Move, unless there is an awesome job involved, and if there is, then no problem, bro !
at about 30:00 -some credit unions have car buying assistance services for their members that can quote you a price on a car before you go to the dealership
When im not leasing to Dave Ramsey show ,im leasing to those guys, keep it real.
I cant even buy a first home hearing how some of yall got multiple homes gives me anxiety, i make double than i did a few years back and is still unaffordable.
This last year I changed my career and have doubled my income. Is the economy worse? sure. Have I outpaced that percentage change? Yep. If my pay doesn't keep outpacing it I'll pivot.
For once, I don’t agree with the money guy. Buying REITs at this point is not hedging against future inflation. Current and expected inflation is already priced in to the price of any REITs. Buy the whole stock market, don’t time the market or pick sectors.
For the most part REITs also underperform the market. The dividends on REITs also trigger taxable events every year.
I think long term you would still come out ahead as opposed to not investing at all, i think thats what they were getting at
REITS are garbage, learn to invest in actual rental houses/apartments, or just stick with index funds. Real estate is hard, but the upside is insane, so it might be worth the effort to learn about the real thing.
The Money GUYS show. Thanks for the content as always!
Great stuff!!! You have come a long way with your content.
Loved hearing you guys talk about REITS
My take is the supply chain issues are a bigger factor than most people think .. supply chain is responsible for the price hikes of rental cars, gas, used cars (your top 3), as well as televisions and furniture .. guys that’s 5/7 .. and gas most likely accounted for at least half the rise in food .. and the reason the inflation - intrest rate correlation has broken down is bcz we have never in out history had a bottom up supply crisis before
As a guy trying to save to purchase a house it’s quite frustrating, saving seems pointless as a 20% downpayment grows faster than I can save. 🤬
I wouldn’t try to buy in this market; let it cool down
@@chemquests that just kicks the can though doesn’t it? Nothing says prices will come down.
@@theeffectiveprogressive they probably won’t come down but you want them to stabilize so the market can match value to price. In a bubble price outpaces value, by definition, and it takes some equilibration time for markets to price properly. Even if the price is a little higher in a few years, it’s closer to what the house is really worth at that time, so there’s less risk of being “underwater” on the mortgage
Bitcoin fixes this. Home prices are crashing in Bitcoin terms right now, at this rate, any house will be affordable in 5 years or so. Saving is for chumps, get out there and invest! You HAVE to take risks, to get enough to buy. If it goes down, then you wait for the recovery. No risk, no reward.
It must be tough. Where are your savings growing faster than housing prices?
Excellent show gents. Thank you.
For student loans you did not mention that the rules were changed. You can not declared bankruptcy on student loans. I think this is the reason banks will lend you massive amounts of money.
The rules have not changed since the government started providing student loans, so there is no news on this front. CLEARLY not being able to default is the reason banks will offer so much money to people with no income. College is a scam, unless you want to work in a specific job that requires that level of education. The Capitalists will keep giving you as much rope as you want, but you might want to think about if you really want to tie it into a noose and put it on, if you can't legally get out of it...
The market on housing is also subject to pretty strict artificial scarcity. Allowing more dense housing options would allow for a market correction as it would be much harder to corner the captive market (people trying to live in a city).
Thanks gentlemen, great stuff!
It was hard 10 years ago when I turned 18. I cannot imagine how the fuck 18 year olds could even fathom to make it the way things are today.
So Grateful I don't have children.
I'm 25 and It's very hard to afford anything at this point
@@cameronpatrick8489 Agreed. There's the haves and the have nots. The have nots population is definitely growing. Unfortunately that's the side I find myself on these days. Not homeless YET but things look grim.
thank you gentlemen
The segment about what saving 25% can do for you at 36:00, is there a way to get that formula in a spreadsheet? I would love to be able to play around with that and adjust the percentage and see how things pan out for my certain situation. Also, awesome show today! It really highlights a lot of eye opening topics!!
yes, I've done two methods - if you're working with pre or post tax, simply put your monthly income let's say post tax it is 3000, you put 13% to retirement at work which is pre-tax, take that amount time .75 or whatever percentage your net is after tax, then take the amount, divide it by the income per month (you can use solver to plug in 25% to find that specific post tax dollars amount, feel free to message me on here for help)
so for GROSS (before taxes) Take your monthly income, 5000; multiply that cell by .25 = 1250 a month
Great video guys! You covered so many bases and a lot of thr pitfalls that so many fall into.
.....but, I would say, Americans on average are getting poorer. The same fact that the same level of wages can't buy what it used to. Your housing cost / wages chart says it all
Isn’t it possible that the savings rate was high only bc the government was handling out free money? Not because people actually saved it by not going out?
Almost 20% of Americans still lost all their savings
It was a little of both. If we had relied on the stimulus and unemployment bonus we would have saved less money. We continued working and were able to save more
I'm also pretty sure the rise in debt is partially from people who had trouble meeting their bills finally meeting them with stimulus money, then not being able to after benefits ended. We had a major drop in childhood poverty in 2020/2021, which makes me think it wasn't all discretionary spending, but spending on necessities.
Yeah it’s not like people suddenly started making better decisions. Inflation is happening in part due to increased demand, as folks are spending that savings that’s just burning a hole in their pocket
@@chemquests That may be true for middle class, but people who live closer to the poverty line often get into debt for necessities or emergencies
How do you make the institutional investors lose on buying those homes? Don’t buy or rent the homes from them! Let them hold until the prices drop. I would not enter the housing or car markets right now; I don’t understand why people are in a hurry to buy.
Unfortunately people like me and you are a minority. On my towns Facebook page (a very small country town) when I see people wanting to rent a home at $2000 a month I just facepalm. Imagine paying 2k a month for something that you will never own....mind blowing to me!
So, If I'm not living in a house or a car, where am I living ? I guess if my tax dollars paid for that bridge, I should at least be able to live under it, right ?
How do you make the institutional investors lose on buying those homes?
Its called capitalism. Get with the program.
@@DavidEVogel I’m suggesting to use market forces to chase them out of the market. Fully onboard with capitalism & since institutional investors are distorting the market for first time homebuyers, how do we disincentive them from participating. I believe I recommended one strategy
I'm from the Philippines and tv commercials about credit cards are giving my generation the wrong message. They (Local Banks) are encouraging people to get a credit card to "spend more carefree," but in a subtle and scheming way. I'm not so sure with other countries but here in my country, its a sad reality.
If there was no intro to the video, I would've thought Bo was the money guy.
Hey guys. A lot of respect for talking about Bitcoin and long term wealth building. Could you do another piece where you bring the price action and other variable tech and adoption since 2008?
It would help a lot. Thank you :)
Great information and reminders!!
You know things are weird when The Money Guys are talking about the effects of late stage capitalism.
Also, why is it still The Money _Guy_ ? Didn't Beau earn an intro by now 😆
The money guy, and his sidekick… money boy?
My guess is it's an ego thing. Brian likely owns the company and Bo is a paid employee.
@ Like Mermaid man and barnacle boy? 😂
@@cjmhall It could just be meaning a general term. "My money guy advised me to do xyz"
@@rallycsx how many people have died under Scandinavian “socialism”?
Best content channel on RUclips bar none.
16:03 "We live in a society" -Bo
Yes. Wage has been stagnated for god knows how long and inflation continuously occurs. Invest your money so you don't miss out.
Base on google Nashville Tn average household income is 60k but average house cost $368k…so how does 25% of that income pay ?
Read some history and take a chill. In 1946 the inflation rate was 18.1 percent, in 1947 it was 8.8 percent as servicemen returned and demand returned while it took time for businesses to convert from wartime to peacetime production. But, by 1948 inflation was back down to 3.0 percent as production started to ramp up again And that is exactly what is happening now. Inflation rises after practically every crises as demand comes back much faster than the supply chain can be filled.
What is envelope strategy?
Where are you getting job numbers from? Everywhere I hear or look, wages are increasing.
Yeah damn landlords stealing half my pay...
Cant afford to buy at sky high prices...
Employers wont increase wages to match rental or home buying prices this is unsustainable.
Will Beau ever not say he is excited for a conversation? Stay tuned to find out!
I feel like he has to know that he's doing it and it's some sort of inside joke. Like it's so obviously cheesy.
Super excited!*
Lol
He’s adorable.
Not a free market when Central bankers set interest rates. US is expensive needing insurance for business and personal and health and accidents.
Invest in productive assets like real estate and high quality companies for the long term. Otherwise if you keep cash for too long, it's gonna be eaten away by inflation.
Wish they would have gone back a few more years on the house price wage growth chart. I do not see how we can't be looking at a crash/correction when wages just does not support the growth.
I think a lot of the home purchases in the past year was retired people and/or cash purchases, which wouldn't be affected by wages.
Yeah those making wages aren’t buying the homes
@@chemquests sure they are. Due to the pandemic, many more people work from home. People who have high salaries working in the city are now moving to cheaper areas and creating bidding wars on homes. It's happening right here in NJ.
@@robertsleeth861 sure that’s a small part of it. Most of the bubble is speculation. In fact there are institutional investors dominating the starter home market
I'm from India and I save more than 50% of my salary. Plus I'm not really frugal and I buy the things I need
Great video.
Love the "what can 25% do for you" chart that you guys always point to. Question: could you layer that onto which retirement vehicles/strategies that age group should be using all in the same video? For example, if I get a pay raise at retirement, it sounds like leveraging Roth accounts all the way is preferred, however if I get a late start and a "pay cut" at retirement, perhaps pre-tax vehicles would make more sense?
Their go to on this questiom, is your effective tax rate above 30%. At that point taking the tax break up front will work out likely in your favor. There is much more that goes into this but its a nice starting point.
Roth is very safe for most ages(under 45) unless you make a very sizable amount of money per year, or you live in a high taxed state.
If you have a large income you should get someone to help you with tax planning regardless. The goal is to get just the right amount in taxable accounts to keep your tax rate down, and have your none taxable accounts fill in everything past that. Of course planning 45 years ahead is not easy.
After taking off taxes etc , you're effectively suggesting saving around 35% of your ' real ' income. Ie your net income. Then paying a mortgage / car / family and having a life it's near impossible. VERY aspirational.
25% savings is mostly aspirational. If your 20 years old you'll be fine if you start saving whatever you can. However, you gotta up you savings rate with each raise you get. Sometimes you gotta swap jobs to make more money.
BTW I started with saving my 401k match, 3%. Now I'm up to 14%.
@@sd0753 excellent stuff
Many mutants are living off >50% of their gross income; a mutant by definition is extreme. People do it, so it’s possible. I personally find I’ve only been able to do it by holding expenses constant while my income increases. Not easy while growing the family (3kids), but you can get used to it.
@@chemquests Yes , that's the trick i guess. Avoid the temptation of a bigger house , better car , luxury holiday as your salary growths , stay small.
I would say wealth building is semi-automatic now. You have to educate yourself and have a little more overhead in having to manage additional investments, but time still does a lot of the work for you.
My savings rate is about 70%.
The trick is to work for the US, but live in a cheaper country.
YES
Aw man, we need more hard working money smart citizens like you!! Nice job lol :)
I intend to deal with inflation by only purchasing the minimum needed to survive and live. I am moving towards the minimalist lifestyle. Eventually, if enough people stop purchasing unnecessary items, eventually the prices will come back down. How many purses do you need ? really
I need toilet paper. The price has doubled!
What are unnecessary items? Unnecessary for you or for me?
Yes
I don't know what to do,
I paid 25% down payment on my first home(which I am living in)
I have only mortgage payment going on for 20years tenure. But it is 50% of my takeaway salary. Even after that, I am investing 25% of my income. 🤔
I am not sure this setup can last for 20years, what should I do?
How did the bank approve your mortgage with a 50% debt to income ratio?
@@sd0753 I have credit score of 800+ forgot to mention that
Credit score shows how disciplined you are at paying debts. Your debt to income ratio shows how much debt you can pay back. Paying 50% of your income for a house is tough. You can change that equation by having less debt (cheaper house) or raising your income (higher paying job/second job).
Well, if you aren't in love with the house, considering the current state of the market, it might not be a bad time to sell and move to a cheaper place. I don't know your life circumstances (age, family, commute, living conditions, where you live, how much equity you have, etc.) but 50% of take home income going just to your mortgage seems like a bit much to me. Alternatively, you could look into refinancing to a 30 year mortgage, which would probably free up a lot of your income, might get you a lower interest rate too.
Increase the shovel can you get a side hustle maybe
A EV v internal combustion engine car payments?
Bacon is not shipped over seas , there no shortage, but 3 bucks 12oz now 6 bucks
Invest in bitcoin and save yourself from collapsing with the fiat dumpster fire
I think the Bitcoin volatility will decrease as the adoption increases, especially the institutional adoption. Great episode, loving it, guys!!!
If it continues, then sure, but that is one of the risks with Bitcoin. If something else catches on, like those rock jpgs, then that could be an issue.
Your Auto for 2021 doesn't make sense for an average income earner. I am talking used cars, not even a new car. The system is currently extremely messed up.
Can we see housing prices per square foot relative to wages?
Great show. Daniel’s FTE on inflation was excellent! I didn’t realize the CPI was a mechanism to reduce SS payments!!!
Dig into that a bit further to understand that there are different CPI figures...W and E. 🤓
@@Jamie-dz8dg That is exactly what Mike is talking about --- FTE Daniel's most recent paper (subscribed to his email list; he is a very valued resource - very nice research) was "Why CPI Is Not an Accurate Measure of Inflation".
Income down living costs up
I feel like investing in index funds is too slow. Im already late to the game starting at 30 so 8-12% roi isnt gonna be making a huge difference.
At least u have a lot of money!
It honestly feels like things are just getting more expensive. Rent goes up every year, gas prices are up. Even a plate lunch that costed 8$ is now 12$. They're raising prices but our pay isnt raising not nearly as much.
If you're starting from the bottom it's you either have to work extremely hard or be extremely lucky to get yourself out of the mud.
As you've noted, rent is up for you, so theirs probably is too. Food costs are up, as well as other expenses, so their price increases may not be going into their pocket. Just saying. If you can find a higher paying job, and if you like your job/boss give your boss notice and offer to stay if they can increase your pay/benefits. This is a great time to find a job.
@@jameswalker590 in order to afford things where I'm from, a person needs to be making atleast 20 an hour. Thats usually when you stop living paycheck to paycheck around here. But entry level jobs usually go up to about 11$ max. You may get an increase of a couple cents every year but it no where near out paces the cost of living.
People are struggling. Asking for a raise is outta the question because most managers come up with an excuse. Even working two jobs takes a toll on expenses even with the extra income. It's very unfortunate when you look at it.
This doesnt even bring into account kids, or debts. Because if you're making a 20 an hour but you have kids, student loans, credit card debt then you'll be living paycheck to paycheck. It's almost like life will bring you back to square one if you're not careful.
@@reffa2858 in a similar situation, my grandma and grandpa moved their 5 kids to a state with an opportunity in 1950 with a questionable vehicle. This is a year or so after they first got electricity. Do what you want, but you aren't forced to live where you do. McDonald's here is paying 12-15 an hour, aldis is 13.50, and factory jobs are 15-22 an hour with no experience. This is an area of Missouri where rent can be well under 1000/month.
The United States is in decline, and you have to live appropriate to that. I wouldn't even consider kids, unless you have a LOT of savings piled up. Renting a very small unit is probably a good idea. I wouldn't even rule out moving back in with parents, if they will let you. The key is to minimize expenses and costs, so you can save up that investment capital on a limited income. That is probably the best option for most people.
like things are just getting more expensive.
Yes we know.
Dragic plus Boucher . That would work
Im investing probably 70% of my earnings. Every week. I started at 30 im 31 now. I wish i learned all this 10 years ago. I gotta lot of making up to do. The good thing is i still live at home and i never had kids so im able to put most of my paycheck aside. Still need to get outta debt first and pay off my car which i still have 30% more to go. Then its housebuying time!!
I'm about to be 24 and feel like I'm so behind but everyone says I'm young and have time lol thx for this comment
@@Dokgo22 lucky bastard. Well goody for u, im Glad my misfortune makes u feel better lol
@@FreequentFlyer no no it just reassures me that its always better late then never
You guys need to debate Dave Ramsey's 15% savings rate versus your 25% savings rate. I like that both of your channels suggest savings rates and investments.
Also I like that you mentioned taking advantage of these lowest ever mortgage rates such as 3% and taking the opportunity to invest more money rather than paying off the house but that goes directly against Dave Ramsey's plan same goes for putting only one or 3% down on a house where he wants 10 or 20% as a down payment.
I like your channel a lot but I'd like to see side by side comparisons of these ideas graphed on a chart through simulation.
That would be validating. A lot of Ramsey listeners need to follow his rules or they’ll get in more trouble. For others, he does a disservice. The more sophisticated people need to move over to the The Money Guy.
The 15% gross income investment rate is a minimum. So, a household making 100k/yr should be investing at least 15k/yr. It's the floor not the ceiling. It's intentionally low, I presume, because it's a doable rate for households with low incomes without pushing them into poverty on paying for the necessities.
I don't think you can meaningfully compare the two. Dave Ramsey is different from The Money Guys, as are the interests and personalities of their audiences. So, it makes sense that both companies would disagree on some things.
TMG is great for advice on building wealth quickly/aggressively while managing debt responsibly. DR is great for those more risk adverse who want to be financially sound while still building wealth.
As they say, personal finance is personal. Not everyone feels comfortable having 98% of their home cost in a mortgage. Not everyone wants a credit card in their name. Not everyone can afford their monthly bills and still put away 25+% for retirement. And some people really do need to be yelled at because they're being that dumb with money.
I listen to both (and others) and take an à la carte approach because, no, not even TMG and DR have all the answers. For example, what about people looking to live/retire in lower COL countries? Everything assumes USA living standards and costs but for that demographic this advice is limited.
Save like an Autist, max that rate to 94 %, live at home with mom, eat beans and rice, break out of wage slavery and become free !
You guys need to debate Dave Ramsey's 15% savings rate versus your 25% savings rate.
And the point would be?
Daniel for the win! Love the research statistics. Love the look at macro economics as it impacts personal economy.
Farming in NZ is increasingly owned by companies. Inflation means US50$ per hour to be compared to 1970?
During times of inflation, you should be paying off your debt, especially if you have a fixed interest rate. Debt is worth a lot less when the value of a dollar drops...
Probably better to invest now and pay off the fixed rate debt later
Is it advisable to sell my over valued house and buy a F150 camper shell like that Mav fella and travel the United States?
Useful content - thanks. One missing discussion point for this topic. As this show always states, the best tool for accumulating wealth is the passage of time and compounding. And if you look at the statistics, the age group that is on average the wealthiest are those in their 60s and 70s (those that have saved for retirement but haven’t spent that money down yet). Inflation is brutal for these age groups as they are no longer working (so not getting cost of living increases in wages) but cost of living is increasing quickly. Add to this low interest rates and dividends, retirees are getting creamed by governmental policy keeping rates low while driving up inflation with easy money.
Most people in this group have 0 debt, paid off property's, and are smart about their spending. In addition, their investments are still compounding so inflation is almost a non factor as they only have to feed themselves as their kids are all grown.
@@TheAnthonyvzw Thanks for the optimism, but I’m in that group and don’t feel so positive. Combine market sequence of returns risk, no earned income with COLA to cover expenses, and spiraling higher prices, I’m nervous.
@@Eric-wc7lx I want to be in your group one day! Early 30s now and I'm sure with every phase there is new challenges and worrys that come with the territory. Best of luck to you and you made it further than many will ever dream of.
@@TheAnthonyvzw that’s not most people in that age group. The majority of retirees are entirely dependent on social security
The answer is to take more risk. Bonds just don't work anymore, so they must be replaced with something else that will not be ravaged by inflation. It kind of depends on your total savings, if its large, you can just own 100 % stocks and live off the dividends. This is the best option, but you need enough that 1.5 % is enough to live on, or be willing to sell when everything is down. Alternatively, you could hold gold or Bitcoin, but those are risky in their own right. A third option is to own stable coins, and lend them for interest. There is no insurance, but at least the yield is enough to almost keep up with inflation. With rates held at 0, there are no good options
Money guys, did the after-tax backdoor roth conversion actually survive, or is it still on the chopping block? Im' starting to see conflicting information on the web.
As of November 19th, elimination of the mega backdoor Roth is in the Build Back Better bill that passed the House, but has not yet passed in the Senate. So we don't know yet.
@@Alan-jk1yi I really hope it fails in the senate, the ability to convert after tax 401k dollars into a roth can really help families that try to save as much as they can for retirement. Maxing out a 401k, in your 40s, doesn't make up for the 20's and 30's when you weren't making enough to do that. I'm probably in the vast minority of savers that actually takes advantage of this option.
The trend of large corporations buying up former homeowner owned homes and converting them to rentals is very bad,indeed I think you are justified in calling it "evil".
This raises rents,artificially turns would be homeowners into long term renters and increases the trend "rich get richer while the poor get poorer"
Excellent,Excellent point in your video. Glad someone is pointing this out. And the evil synergy between this and the artificially low interest rates. !!!!!!!!
I see that you have also fallen for the Blackrock fake news.
less than 25% of my income....lol....I guess I'm never gonna afford it haha.
Hi guys, can a CFP advise on my 401k selections as well as the IRAs he manages? I feel like that matters as well.
I'm sure they could, although its usually not that hard to just pick the index option. These things usually have a simple correct answer.
Yes. A CFP will recommend something that makes him money.
How the fvck are you supposed to invest into real estate when you can't even afford your own place?
I dabbled in Bitcoin. Sunk 10k in it and pulled it out 4 days later. It was up $700 so decided that was good enough. :). That investment scares the crap out of me.
You have to understand it to be assured it will continue to appreciate. Read the bitcoin standard and learn
Good to see these issues on the Money Guy Show. Love watching you guys in general but nice to see you guys don't mind diving into the bigger issues people face in these times.
But isn’t one of the main purposes of the United States of America to allow access to more first time homebuyers? And isn’t another main purpose of the United States of America to build a job market that is open and accessible to all in order to purchase that home, be able to afford the home in the long term, be able to drive to a local grocery store and fill up your cupboards, and to be able to send your kids to good schools and a competent healthcare provider? And then my last question is, is any of the craziness that’s going on in our stock market today getting us any closer to any of these things? The answers to these questions are very important because it speaks of the soul of America 🇺🇸
I think you made an excellent definition of socialism.
@@DavidEVogel I’m not talking about government handouts or mandates, I’m talking about citizens working and creating together to tend to what truly matters in communities before we worry about stacking paper.
And if our free markets were not being manipulated by computer programs and counterfeit currency we’d all be better off. Not sure what you’re proposing but when this house of cards falls it will be us struggling the hardest left to pick up the pieces. Wall Street is a joke, and the players are disconnected from reality in a tragic way
Very good episode on the real problems created by the govt
Love it, thank y'all! Another great video.
Wait a minute, you're telling me that a well-intentioned government policy did not have the intended consequences and actually had the exact opposite effect? I CANNOT believe it.
The first step to successful investing is figuring out your goals and risk tolerance - either on your own or with the help of a Financial Advisor. If you can get the facts about savings and investing with a well detailed plan, you should be able to gain financial security over the years and enjoy the benefits of managing your income.
Do these 25% percent savings charts assume you are starting at zero? For example, if a 40 year old has zero dollars, he can replace 58% of his salary by saving 25% until retirement?
Good luck trying to save 25% at that age. Kids , mortgage , cars .
Yes
You guys should do shorter videos. I see the title and want to watch but then check the run time and think it's too long to sit through.
You can always listen to it in segments
Is it just me or does Bo seem less excited today?