How To Retire A Millionaire
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- Опубликовано: 24 сен 2023
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BOOKS THAT CHANGED MY LIFE
So Good They Can't Ignore You - geni.us/SoGood This book transformed my life when I read it for the first time nearly 10 years ago. It's still guides the way I think about self-development today.
Deep Work - geni.us/ALE-DeepWork The most important currency you have is your undivided attention. This book shows you exactly how to spend this currency in a manner that will lead to head-turning accomplishment.
SYSTEM DESIGN
Designing Data-Intensive Applications geni.us/DataIntensive
Currently the best reference for contemporary for system design.
System Design Interview (Volume 2) geni.us/SystemDesignIntervie and geni.us/SystemDesignInterview - For interviews, the best references are System Design Interview and System Design Interview Volume 2 by Alex Xu.
I get a kick-back for the affiliate links above. The opinions expressed in this video are my own. I do not speak for Amazon. 
Наука
you are the TechLead that we need
Steve, please don't start a cryptocurrency or overcharge for. Putting ads on your RUclips videos is one thing, but Patrick Shyu (TheTechLead's) level of scamminess is completely unacceptable
Love your content, man
(as a millionaire)
1. Pay yourself first(save for retirement)
2. Time in market > timing the market
3. Money isn't everything
This is super important content! I had to learn all this the hard way
I've watched numerous videos about this topic and this is the ONLY video that I will be sharing with my wife lol...I love your practical and straightforward delivery! I recently went through that phase of carving out dimes for saving at the expense of joy and happiness. Guess I'll be moving on to more balancing and rational saving pretty soon. Thank you, uncle Steve!
one of the best videos I've watched relating to financial freedom - no overcomplications, just basic discipline, yet enjoying life!
great vid Steve! i'm still trying to find the balance between saving money and enjoying it. also super excited for your launch!!!
Thank you so much for sharing. I keep learning with every new video and mail in your newsletter.
I’ve recently started learning about money management and how to invest /save for retirement and you’ve summarised what I found spread across different books perfectly.
Thank you for taking the time and inspiring aspiring developers with your great work.
I had a similar history with FIRE. Love the story and now I'm thinking about "my health 401k" as I'm getting old.
1. Save pre spending
2. Time on the market >>> timing the market, DCA, max out 401/IRA (murica specific, basically retirement and tax free accounts). Buy ETF, don't touch money until you retire.
3. Money is not everything in your life. Don't fall for FIRE and obsessions like that.
I love your effort into these RUclips videos. I'm eventually planning on starting some RUclips content myself and you are an inspiration!
I'm an SDE 2 (started at SDE 1) who luckily had a friend let me know about 401k + Mega backdoor Roth 401k at Amazon that I've been able to utilize (and save about $90k in my 401k accounts over the past 2 years). Speaking as someone who is in a MCOL (Seattle, Austin) 25% of your savings is a good place to start but is also likely too little. Housing is crazy now a days and in a MCOL city I think the goal should be 50% so you can save money for your future home/condo purchase.
Also one thing that is crazy is the promotions at these large tech companies. I was able to get a promotion in about one and a half years at Amazon (Q1 this year), and got my stock grants priced at $100 a share (they are currently at $130). Now that has ballooned my TC up and I'm planning on selling all on my RSU vests and using this for my house fund, if I had not put in the extra hours here and there and delayed my promotion that would have cost me $30-60k over the next 2 years.🤯
Bruh, compound interest is the 8th wonder of the world. I'm lucky I learned that in 2004 at my first job out of college, which was a financial advisor with Morgan Stanley. Imma gunna start a business, hires my kids at a young age, and auto deposit their earnings into their retirement account. Now that's a head start!
Funny- I just evaluated my finances yesterday and uncle Steve drops a related video the next day. I guess I wont be buying anything for a while
I agree with everything you said with one Caveat. What tells you that Time is on anyone's side?
I think that's the biggest flawed belief. That you have time. Because how do you know you'll wake up tomorrow to see the next day?
So I think together with this advice, balance and enjoying what you make is key. Coz at the end of the day, you don't know when the end is.
Great video
For people on a less exuberant income, the well established rule of thumbs are:
* Save 15% of your take home pay
* Your house payment should not be more than 25% of your income, your fixed costs should not be more than 50%
* Don't let personal spending exceed 25%
These are guidelines. They can be played around with. In the current economy 15/75/10 is not uncommon. Try to keep the 15% minimum, though.
And _always_ take your employer's retirement match.
Here's a wrench, mortgages are massive compared to just 10 years ago. Owning a house is the new retire a millionaire...
It’s funny/sad that the $-anchored milestones I used to fantasize about as a kid end up feeling less magical as I attain them.
Making $100k per year doesn’t seem like the key to happiness. Having $1M doesn’t do it, either. It’s a sexy number to hang onto when you don’t have it, but as you implied, life (and happiness/fulfillment) is about way more than money. No one should wait to have $1M before trying to be happy.
Somewhat ironically, because I’ve gotten used to “paying myself” (i.e. automating my savings/investments before my paycheck goes into my bank account), I almost feel like I’m treading water because my bank balance is relatively static. Sure, my other accounts are growing, but that almost feels like imaginary money, since it’s largely illiquid.
Thanks, Steve! Super helpful as always. How would you correct the strategy for someone in their late 30s with minimum savings in 401K?
I saved every single penny I could, but unfortunately I am not in the top 10% of the worlds economy and already lost most of my saving due to inflation.
also, first you need to be born ina rich country
then, you need a good education, stable family life,
then, you got to be lucky to avoid any chronic illness
then, you need a job in the top 5% or so of income range
I mean try to be a millionare in eastern europe with
yep this video is either tone deaf, or targeted at US only
@@sdwvit well, there is a very small percentage in many countries but yeah, the target audience is like insanely small.
Hi Steve, love your show! Do you have any advice for mid-career software engineers trying to move to the US from other parts of the world? Here in Australia, climbing the corporate ladder is slower than in the US, so I'm concerned that I might be considered less capable when I apply for a position in the US. Thanks in advance!
whitch watch are you wearing?
So thorough, even better than Bukola's, Warren Buffett's, or that guy from CBS. I wish you had gone into ETF / mutual fund choice(s) and. Knowing the secret sauce would save even more effort and time
I will look up the backdoor Roth IRA you mentioned; and I really love the automatic configuration so you don't have to think about it anymore
I haven't been that intense about my stinginess as you mentioned, but it definitely has contributed both to my worrying more than necessary and to hurting some close relationships
Cheers,
Nathan
Thanks Steve, but do I need sell the stocks distributed by my company to apply your strategy?
Hello uncle! As a college student, we are extremely confused about what career path to choose from dozens of options in the computer science field. Can you help us with that? Thanks!
In particular, my doubt is what to choose from mainstream SWE and ML engineer. Since ML engineering requires masters or phd degree, that time could have been spent on climbing the corporate ladder and hence, making more money.
I’m frustrated I don’t have a job to start saving, but I’m glad I know this stuff before starting.
I can’t wait until either my security clearance goes through or another company is willing to give me a chance to break the chicken-and-egg problem: need experience to get experience.
In the meantime I’m going to try to live life to the fullest while continuing to make myself a better engineer in some way every day.
Thank you, Unc, for mentioning the downsides of FIRE. Too frequently I see young SWEs sacrifice living life now for early retirement and everyone praising their foresight
What's your strategy with RSUs? Do you let it ride with AMZN, migrate into other stocks, or convert into cash for more diversification? There's also the short term vs long term tax implications for selling of course.
The best financial choice is to sell the moment you get it and diversify, e.g. throw it in a S&P500 fund.
The way to think about it is if someone gave you the amount of vesting RSUs in $$$, would you put it all in AMZN?
Risk mitigation theory says to diversify. If Amazon wouldn’t do well you could loose your job and have your stock be of less value at the same time
Loved the info. Hated the thumbnail. I guess is part of the YT algo game. Keep spreading personal finances basics uncle. We all win.
I work and live in india and working towards being a USD millionaire. Being in tech definitely helps. 😬
congrats to that nice rolex :-)
Where did he find 9% interest rate??? I don't see anything near this rate.
What is the difference between those IRA + 401k, and if I would invest in ETF of entire World(let's say from Vanguard)?
They tend to be safer investments; but more importantly they have significant tax benefits and your employer often matches investments made into them. No strategy will beat a 100% return on the first day.
Your IRA and 401k will often allow you to buy that ETF. There are cases where they don’t, but the tax advantages are worth whatever return differences.
It’s just you don’t have to pay income taxes on the funds you put into your IRA/401k, so you can add more than if you just bought the ETF on Vanguard (or otherwise save on income taxes), or you don’t have to pay taxes on withdrawal (including all its earnings) for Roth IRA/401ks
Hey Uncle, I haven't been seeing any of your emails coming in.
nice watch! Did you buy it when u were not investing during the great financial crisis? 😆
*if you start young
By the time of retirement 1 million dollars isn't going to be worth much. Is it even enough to retire on today?
Wow, Steve invested in crypto in 2015. Assuming a 5000 investment, it has grown 80x now. So it's 4 million.
Are you Vietnamese, Huynh?
How did you manage to get out of the obsession with money?
Wait, can you retire not a millionaire?
Max out your 401k
I didnt quite get the joke with the Asian father... someone explain?
I feel like it's a waste to put money away in a roth IRA or IRA for retirement as you cannot touch that money until you retire around 66 years old. If you do decide to take it out then you'll have a big tax bill. Why not just put that money into the stock market after having only an emergency fund in the bank account and invest the rest in index or ETF funds in the market? Maybe also invest in dividend stocks that have like 3-4% monthly returns? It's nice to think positively and envision that you'll be alive by the time you're 66, but that isn't guaranteed. I think you should live your life day at a time because you truly do not know if it'll be your last. Now this is not an excuse to go on a massive Starbucks run to get as many pumpkin ice lattes, obviously.
Check out Financial Planning Templates ➡ clickhubspot.com/1dg
🚀 Transform your tech career with my free weekly newsletter - newsletter.alifeengineered.com/general
💥 Continue the conversation on my Discord server with like-minded viewers. The advice section is *chef's kiss* - discord.gg/HFVMbQgRJJ
💥 My RUclips content will always be free of charge but if you'd like to support the channel, I'd be honored if you supported me on Patreon - www.patreon.com/ALifeEngineered
lol
Ah, so the trick to retiring with lots of money is to earn an improbably large amount of money, got it.
No, you didnt listen. Its about saving some of that money. If you spend it all youll never retire with lots of money
I've met millionaires who have kids and never had a household income above 60k. The book "The Millionaire Next Door" is a great read that goes into the details of who the wealthy people in the US actually are. The results are surprising to most.
The bitterness is real. Just save what you can. Anyone can do better than yesterday, than last month, help their children save better than they do, etc.
funny you are wearing a Rolex to emphasize on the fact that you have money ? lol
IYKYK
@@ALifeEngineeredis it like a guidance to get people trust? this guys wears a rolex, he must be good
@@sdwvitHe probably just wanted one and could easily afford it
Bro, you have Amazon stock from 2006, why are you worried about s&p 9% returns lol. You should be a millionaire several times over
Unless he kept the stock, which I doubt. Most logical course of action is to sell at vest and buy index funds.
I mean, obviously he sold the Amazon stock to put it in a S&P index fund instead
What kind of risk happy employee would keep exposure to 1 stock when they could grow steadily with 500?
the sub is awesome!