Why Retiring At Age 35 Is A Bad Idea
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- Опубликовано: 27 сен 2024
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Why Retiring At Age 35 Is A Bad Idea
Today, we’re talking about F.I.R.E. 🔥(AKA Financial independence, retire early). And while early retirement sounds pretty awesome, we’re breaking down what F.I.R.E. is all about, plus the right way to reach your retirement goals.
Links:
The Ramsey Retirement Hub: ramseysolution...
Honest Math Withdrawal Simulation: static1.square...
Connect with a Ramsey Smartvestor: www.ramseysolu...
George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.
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It seems certain stocks are undervalued, flying under the radar despite their potential. You can't help but wonder when the market will recognize their true worth. How can I invest $600K wisely to ensure our future security?
It's frustrating when market inefficiencies persist, particularly with undervalued stocks. Consider consulting an advisor for smarter investing decisions.
My financial advisor has been a game-changer, providing clarity and boosting my confidence in navigating finance. With their help, I've achieved my goals faster than I imagined. Highly recommend!
Your advisor appears skilled. How can I contact them? I've recently sold property and aim to invest in stocks, seeking guidance.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
That's it. Its official. George is my favorite Ramsey Personality.
🥹🥹🥹
Mine too, but not because of this video, although it is a good one.
There was a question?
He's the only one not drinking the Kool-Aid they serve there.
Glad this video is still up! Hope Dave apologizes publicly if he hasn’t already.
Everybody should be allowed to have his own opinion 😂 Even Dave
@@georgelien Well then he should present it as an opinion, not as fact!
George, it's time to head out, brother. First video of yours I've watched and you are WAY better solo. You're a smart guy and charismatic.. And also right about 4% withdrawals
I don't think Dave allows his personalities to have a career if they leave...I meam, we've never heard from Hogan again.
@@Amanda-ws5ty that's a whole separate issue with different circumstances
Not right at all. If you withdrawal 4%. It will never run out if you are getting 8-12% every year
This video is great. Dave is negligent with his recommended 8% withdrawal rate in retirement.
Thanks for talking some sense, George. Hoping Dave can (for once) find an ounce of humility and admit that his advice is wrong. Heck, it’s downright dangerous.
As much as Dave likes to say real estate investors 'don't factor in risk', his 8% withdrawal rate seems to also not factor in risk of market downturns. That's where the more safe 4% withdrawal rate comes in. Sure, the market may average 10% in the long run, but your retirement isn't that long. One or two big recessions during your retirement will leave you broke with an 8% withdrawal rate.
After seeing what Dave did in response to this video it’s no wonder he can’t keep personalities around. I hope he apologized to you, George.
He should also apologize to his audience.
Dave talks about apologizing to 2 people in his book Entreleadership@@MikeBean
I would have loved to be a fly on the wall for that conversation!
What did Dave do?
@@annetraut8247did you get an update ?
Have a feeling this is the video Dave is trying to delete since it references lower than an 8% safe withdrawal rate on the Nov 2 live stream. @GeorgeKamel we stand with you! Papa Dave can be wrong sometimes.
The problem with that honest math calculator is there is not return on that money. Its basically calculated like a savings account which seems wrong. If i had $1m im not withdrawing it from a savings, im moving to an index fund that matches the s&p so my money will continue to grow even as i withdraw.
@@crashtestdummy1972nobody is suggesting the funds not be invested... the math shows the 4% rule of thumb wouldn't work with no market returns. The rule of thumb is based on a 7% average gross return.
@@crashtestdummy1972 That is incorrect.
At the bottom of the page they give you all of the assumptions used:
"10,000 trial Monte Carlo simulation at each withdrawal rate. 70/30 stock/bond allocation with monthly compounding. Fat-tailed levy process for sampling equity performance. Fraction shown corresponds with median simulation result. Analysis uses default forward-looking capital market expectations programmed into the Honest Math portfolio simulator. Assumes 75% of the portfolio is subject to income taxes upon withdrawal at an effective rate of 20%."
@@crashtestdummy1972
It does take into account returns. It’s the return volatility that makes for lower withdrawals.
@@crashtestdummy1972 the "Honest Math" money is invested. The thing is that some years the market is up and some years it's down. Dave's abbreviated assumptions say the market always goes up 12%. It's true it averages 11-12%, but there's years it does -10% and other years it's 20%. When you take from the account on down years, your account has a hard time recovering. Many simulations run with real historic returns show that the accounts often don't truly recover. 4% is a safe withdrawal rate for 30 years. Safe means there's a very low chance you'll be broke in 30 years, but there were still some bad years that even that low % still had the invested accounts drop to 0 within 30 years.
TLDR..
The market is not a guarantee and not every year is the average year.
I disagree with the hating the job part. Ive never felt fulfilled or excited about work. Work is a place you go to make money, that's it. If i have money, i won't work
This is the best way to approach it. Most of the people I know who view job as a means to make money and provide for themselves and the future are doing just fine. The ones who chased the "dream job" they love to do are mostly broke and struggling to get by because for most of us, what we'd love to do doesn't pay jack squat, lol.
So you do nothing of value until you start starving that’s really smart
This is how I was raised. Your job is not supposed to make you happy, it's supposed to make you *money.* Not expecting work to be this fountain of joy actually made me happier than my coworkers. I did FIRE and retired in my 40s after working somewhere for 20 years.
I'm kinda the same. But you do have to find something to fill the void once you quit working. That is essential.
That's what people that keep trying to tell you work is not the problem not get. At the end of the day most people want to own their time. Even if you love your job I'm sure most people don't love the things that come with it such as long commutes, having to plan your life around your job, limited free time etc. Most of the billionaires who "work" wouldn't work for someone else even doing something they love to do because no one wants to answer to someone else if they don't have to at the end of the day.
I retired at 40 just before the pandemic. I still work about 10 hours a week on average doing contract work on my own schedule, but I don't ever want to go and work directly for a company again.
I feel like that at 30 after losing my job during the pandemic. I’ve cobbled together several part time streams of income after trying to get a full time job for so long. I swear we are in a REAL recession between inflation and the job market. The stock market has nothing to do with how well most people can make ends meet, only on those living off investments (mostly retirement age and wealthy).
George is 100% correct. Dave's moronic assertion that 12-4=8 therefore withdrawal 8 completely ignores sequence of returns risk. Honestly I don't even think he knows what that is based on his statements. Even IF the market returned 12% on average (it doesn't), if someone retires right at the start of a few down years, an 8% withdrawal rate will permanently crush their portfolio and they will likely run out of money. Literally anyone can see this using simple historical simulations.
Agreed! I don’t care about historical figures … i KNOW that I’ve basically gained net zero in the last 3-4 years both in my 401k and my investment accounts … luckily I’m in my 40s and still working and saving/investing … my parents are biting their nails everyday however!
Most people that I know that are in to FIRE are all about the financial independence part, not about retiring. It's about getting to the point where you don't *need* to work, so you can then work on stuff you are passionate about. But yeah, if you can work on stuff you are passionate about now, then that's the best of both worlds.
That’s the key thing that the Ramsey Solutions Team & a lot of CEOs can’t figure out or refuse to believe. It’s really about being able to do what you want when you want & not having the stress about being able to pay bills & feeding yourself & your family at the same time.
That's exactly why I am pursuing FIRE. I want options
I agree 100%. I have no interest in not working. I just want to be able to coast fire.
Yep. Most studies I've seen suggest more than 50% of workers hate their job. So not needing to work for a living and not needing to depend on a job is great.
Completely agree here. Having options is what I want, not to stop working.
Being aggressive with saving and cutting expenses while hustling to build wealth faster isn’t a bad thing.
I’d love to hear how this is supposedly bad….but they kind of just get set in a mindset and don’t seem to change once they made their initial opinion
Thank you for speaking truth! I hope you're not going through too much at work, but you're absolutely correct on those percentages, and whatever happens, know you have fans and followers.
FIRE is almost always about the FI rather than the RE. If you want to retire early, then by all means go for it. But for most they truly value not having to go to work if they dont want to. Take a break if you need it, you can always go back to work later on.
Completely agree ❤
Learning about FIRE in my 20s really changed my mindset. Rather than just saving and investing the typically recommended 10-20%, FIRE taught me that it’s possible to live very lean (especially when young and single with lower expenses) to save and invest a significantly higher percentage of my income. Even if it’s just for a few years when you’re young, building an early nest egg can really speed up the math to building a sizable net worth. Whether that means retiring early or something else, that will be up to me but at least I’ll have options available to me.
I am a huge fan of George Kamel and Rachel Cruz - Smart Money Happy Hour and their individual videos. This situation with the 11/2/23 Ramsey Show tantrum by Dave is so unfortunate that he throws George under the bus, repeatedly calling him (and people like him) stupid and fearmongering, instead of finding out more about the video in question (this video) and that George was talking to FIRE investors who want to retire in their early to mid-30s and live 50-70yrs on investments. BIG DIFFERENCE than a "traditional" retiree in their 60s+. But Dave couldn't shut up enough to listen to his daughter to try to understand the context of the video in question. That is arrogance - he should apologize privately to his employees (including his daughter who was put in a very awkward situation publically) and a public apology for support of his "Ramsey Personalities" superstar George who along with Rachel is speaking to a younger generation than Dave could ever reach in his out of touch mean approach.
I just like the idea of living on less than you make, saving, and investing as much as you can.
Was surprised to see Dave lose his mind over this video. In my opinion, Dave's 8% advice is very reckless and most wisdom seems to lean closer to George. Dave has done a ton of good for people over the years, but looked like he lost his marbles in that clip to be honest. Even Rachel looked pretty uncomfortable.
He didn't lose his mind on this video. The guy that provoked Dave to lose his mind did it on purpose. He even recorded it and has his own youtube channel to show it. I am not looking him up again.
This is the video that pissed Dave off 😂
Dave was an asshole for throwing George under the bus.
@@mysticaltyger2009 am I right to assume Dave never apologized?
@@AnimatedIdiotGuide not publically.
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
Everyone needs a different stream of income , unfortunately having a job doesn't mean security due to the high rate of tax , one needs to move ahead their expectation, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold. Alternatively, seeking advice from a financial advisor could provide valuable guidance in this matter.
I'll recommend you create a diversification strategy because building a good financial-portfolio has been more complex since covid. Recently my colleague advised me to hire an advisor, surprisingly I have accrued over $210K under the guidance of my coach during this crash. She figured out Defensive strategies to protect my portfolio and make profit from this roller coaster market.
Mind if I ask you to recommend this particular coach you using their service?
My advisor is Stacie Lynn Winson, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
I didn't realize what I had been doing from the beginning was even part of a movement. I knew I wasn't going to be able to work many years bc I had to take care of a special needs sibling, so I just invested and got a little home. Now I'm actually ready to retire before my first baby is born so I can do the thing I really wanted to do, be a stay at home mom. It's worked out for me but I realized I'm very blessed and my husband is amazing.
I'm happy for you.
George is assuming by retiring that people just stop earning an income. No. This will allow freedom to get whatever job you want working as much or little as you want so you aren’t chained to a desk like most people.
I have had type 1 diabetes since age 11. I'm now 41. Let's be realistic - I'm not living to 90. In my situation I have been planning on a age 55 retirement since I entered the workforce 19 years ago. I refuse to die at my desk, or drop dead on the Walmart floor as another RUclipsr puts it. I don't even want to work part time at 55. My body is already on FIRE with side effects from this disease so I need to be on FIRE to retire at 55, or sooner.
Caleb's die on the Walmart floor analogy is perfect to get it through peoples heads how important saving is.
My husband is also T1 and he doesn’t have a strong calling for work… he wants to RE and volunteer part time in the community. Whereas I’ll work til I’m dead but on things I’m passionate about as a creative person like writing and music. FIRE will allow us to enjoy life while we can together. There’s nothing wrong with that!
maybe this is a hot take... but any age that starts with 50 isn't "early retirement". Hell, where I work I reach my full retirement at 50.
Don’t let your video editor retire early.
George is the bomb. He is by far my favorite Ramsey personality. I discovered FIRE then 5 years later discovered Ramsey pod cast (last week). Same general principles.... only Ramsey system allows for for a little more living in the today. Mr Money Moustache is still the OG in my opinion but George is a rising star on the FI stage. Thanks for covering the FIRE movement George :)
I recommend TheMoneyGuy. It's another group that offers solid advice on RUclips and podcasts. I'm just a fan of theirs, not associated in any way. I hope you like them.
1.2 Million at 34 here. I like the FIRE movement, but it's more about the FI. I will continue working after I hit my FIRE number but it will be because I want to. This is a big difference because currently I HAVE TO work. This will lead to a more meaningful career.
Yeah. I just don't want a boss to be able to fire me and screw up my future.
$1.2M saved?
@@IrisP989 saved and invested
You are absolutely crushing it and are far ahead of people your age! Do you own your own home yet or is the 1.2 million also including the value of your home? If you don't own a home, I would work on that next and try to get it paid off in 15 years. If you are including the value of your home, then you wouldn't have enough to retire anyway. One of the biggest issues retiring prior to age 59 1/2 is not being able to pull money from your retirement accounts unless you set up a Roth conversion ladder where each conversion needs to sit in the account for 5 full years before you can touch it without penalty.
How much do you make and are you married? (including spouse assets in that number?) If you've done that on your own, that's incredible. My wife and I are at a similar number but that's both of us combined
Dave’s rant is getting this video some good publicity & views. I’m sure it’ll stay up 😄
Hope you and Dave hashed things out
I work on high end homes for very wealthy people. What they have in common is that they are always working even though they don't have to.
I'm sure they are working on their business and not for someone else. They get to control theiri time and effort.
As someone who saves above 50% of my income, I don't really find it to be a struggle or anything. I just...live very frugally because I don't spend money on stupid stuff.
Edit: I do also make a good salary so that helps
Props to you and those that can do it, but for me, there has to be balance and not enjoying anything in life now for the sake of saving every last penny doesn't seem appealing to me at all. Technically anything that brings enjoyment in life beyond necessities can easily be thrown in the "stupid stuff" category, so you have to define that cut-off somewhere.
@panzer_TZ yeah that's why I threw in my edit. I just live on my income from a decade ago and chill. And then save the raises. My goal is to reach fi at like 40 and then just donate my salary to charity for a decade.
Can I ask ballpark how much do you make and what city you're in?
That is how I feel also. Our salary is high and we saved and invested 50% plus of our income. So the reasoning is instead of working 40 years, we only really need to work 20 years. Now that 23 years of working has passed....hmmm....hahaha.. My Barista FIRE situation isn't too bad to be honest.
@rayzee0285 I make about 100k but I was on pace to do it way over in orange County california since i kept my rent to 550 in southern california in 2017 (I lived on cheaper than I do now) and I live in the acela corridor now.
I just live on the same 1500 biweekly salary I made out of college a decade ago. My lifestyle inflation all stayed under that number.
Once you get financial Independence you could do anything you want. Don't worry so much about the retirement part.
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $120k in a savings account that i want to invest in a non-retirement account. Where would you invest this as of now?
Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio.
I agree. Based on personal experience working with a financįal advlsor, I currently have $800k in a well-diversified portfolìo that has experienced exponential growth from when i started. It's not only about having money to invest in stõcks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Your advisor must be excellent. How can I get in touch with them? I'm worried about the decline in my retirement portfolio and could really use some guidance.
I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Melissa Elise Robinson" I've worked with her for 9 years and highly recommend her. Check if she meets your criteria.
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.
If you’re starting late to save for retirement it’s worth it to look at some of the fire tactics to maximize your savings in the limited time you have left to catch up your retirement savings
I don’t follow FIRE or Ramsey, but what Ramsey always gets wrong is assuming ppl who choose FIRE will just stop working. That’s not true. Bottom line is Ramsey crew don’t condone “non traditional “ ways of living/working. That’s it.
They can't see/think outside the box, but they also have to follow the company line/rules since that's their schtick. I'm sure some of the personalities may have differing views from what the company spouts, but they can't say it out loud and have to condemn anything that doesn't line up with their company messaging.
I remember Dave’s take on fire and he was saying how everyone was gonna move to an island and never see your family again lol where does fire say you’ll never see your family again or that you’ll move to some island
Out of interest, if you don’t stop working, then doesn’t that counteract the “retire early” part? Or is the goal to be able to do what you want in terms of work?
@@bens196the "retire" means you do what you want without worrying about your jobs income. So you could work part-time at a low stress job and pursue your passions or have a low earning business, or move to your dream location and volunteer or something. Basically you live on your terms and don't move or land work because you NEED to, you just do it cause you WANT to
The key is no debt, 2 years worth of average expenses saved and investing into the market on a consistent basis.
Dave needs to PUBLICLY apologize to George, as well to his viewers who are sick of his unhinged rants and belittling speeches. If Dave can't control his temper, he needs to step down. The personalities may not be allowed to deviate from his message, but at least they have a chance at not perpetuating the gross behavior if they stop emulating him. His ego and rudeness is starting to infect Ken especially.
The fact that this video is still up after yesterdays outburst tells me Dave realized the caller had the wrong context. Hopefully Dave will issue an apology for his brash comments yesterday.
The article that was mentioned got taken down. It makes me a bit sad. I like this video and the article.
@@hopefilledfinancial that's very unfortunate. I was hoping that Dave would do right by George. I hope there's an apology the next time he's on air.
I came here looking for this.
The caller had the wrong context? He called asking about the 4% rule and dave blew up. That's all the context needed to know dave was in the wrong.
Sorry Dave blasted you on that other video…he is 8% withdrawal advice is totally irresponsible and completely ignores sequence of returns risk
The issue with FIRE is that the people doing it usually leech off people in their lives to reduce their own costs.
Good video on the FIRE movement. A few points: It was stated you pay penalties for withdrawing money early from retirement accounts. The FIRE movement uses a “Roth conversion ladder” strategy to avoid paying these penalties. Because of this strategy you need 25x your expenses across all investment accounts even pretax….not post tax like stated in the video.
I’ve had $3000 of debt for the past few years… thanks to you and many others I look forward to getting out of that and saving for the first time.
I’ve had about 3 credit cards, all below $300. I owe about $200 more on one and $300 more on another… I can’t imagine if they allowed me to have a higher credit limit at 18.
Thanks for the math lesson George; I hope you get a chance to teach this concept to Dave, as he really needs to learn it.
It is interesting to see George talking about a 4% withdrawal rate when Dave often talks about withdrawing 10% a year in retirement.
Exactly! I reacted to a clip where Dave, with George, were discussing how financial lemmings say 4% is safe but 5% is crippling. Dave called that BS and went on with his 8% to 10% numbers and made fun of the advisors who roll with conservative SWRs. IN THIS VIDEO, the 5% SWR looks super risky compared to 4%. That is the exact point I make in my show, and I am excited to see Dave change his mind soon.
Dave talks about 12% actually.
I also noticed this, Dave is on record saying 8-10% is fine for growth mutual funds. I agree with many Ramsey principles in general so I'm close to diet Dave or Dave light, but they always present their own solutions with 10-12% average returns and 8-10% withdrawal, then use 4% for any other plan they do not agree with which changes numbers drastically.
@@35goingon90 I bet, we can get Dave to change his mind with love, logic, and evidence. It is my current mission to see all of Ramsey Solutions become consistent on this front.
8-12% is on return, not safe withdrawal. They seem similar but are quite different. Especially when retiring young there is an increased volatility/risk. Which means the two numbers will be even more different than other normal retirement circumstances.
We stand with George in solidarity 🇺🇸🇺🇸🇺🇸
The video is still up yay! 😊
FIRE these days is a lot of people trying to retire at fifty something as well, I've heard 55 or 57 thrown around a lot. There's a whole spectrum.
wow video is still up. Either Dave can't find this video or he's just an angry old man yelling at clouds that doesn't actually do what he says.
He did remove the article that I mentioned on the call though. Dave's team called me back, and asked for the name of this video. I told them, and they said that George was just talking about FIRE, but he doesn't give an alternative to the 4% there within. I told them that he actually claims it isn't conservative enough per honest math. They just thanked me and asked to call back if I needed help with anything else.
@@hopefilledfinancial That's such a crap answer from the Ramsey team because even the part where he's talking about the 4% leaving only 0.03x of your money is based on a 30 year normal retirement timeline and not even related to fire other than 4% is not enough for 30+ years of retirement.
@@whasian2007 Exactly! I explain as much on my reaction/review of the call. But, this may be why Dave didn't have this video taken down. He may have taken the word of his team that it just talks about what FIRE is. I like this video. I really do, and I would hate to see it then down. It may note help that it is explained here in the comments, but Dave isn't reading my comments.
For me, it’s about the FI and not necessarily the RE. I like being able to just walk out of a job if it is no longer where I want to be (in fact, I did this once, and it was even better than I thought it would be).
Of course. Once you have enough money you can do anything you want.
This is an amazing video. Very reasonable.
It’s funny I was listening to Dave Ramsey the other day and someone called in and told Dave that George said you should take 3 percent out of your retirement to be safe he got so mad said it STUPID and he is going to remove this video immediately. Dave says you can take 8 percent in retirement which I find insane I would agree with the 4 percent rule.
If you do Dave’s rule of 8 percent there’s a good chance you will run out of money if the market goes negative a few years in row.
Between thus video, and the videos of Dave's meltdown about the %4 in retirement, I finally figured my own idealized hope for my own retirement. Thanks for all your info videos.
The only thing more certain than death and taxes is 12% market returns
My goal is not retiring at all..I want money freedom I want to work on something (work, garden, house, fitness, helping people) till death
Yah my husband wants to “retire” so he can volunteer for good causes and enjoy life. Ain’t nothing wrong with that.
My good friend retired at the age of 38; which was 35 years ago. Since then, he lives 6 months in Chicago and 6 months in Hawaii. How did he do it? Two reasons: 1) he is by far the cheapest person I have ever met. 2) He invested more than 50% of his working salary in commercial real estate. So, early retirement is possible, but you have to have a plan and discipline.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits, such as regularly setting aside money for sound investments.
I am excited 😊 my life has totally changed. I have been benefiting $10,250 from my $4,000 investment every 14days
I invested with Jason, i make about a 30,000USD every month.
I heard a lot of investing with Mr Jason Appel and how good he is, please how safe are the profit?
I trade with him, The profit are secured and over a 100% return on investment directly sent to your wallet.
I've seen a lot of recommendation about Mr Jason Appel, Please can I have his info? I want to invest 1,000usd with him.
I would love to retire at 35 from secular work and do ministry work for the rest of my life without having to worry about money for expenses.
This is my goal too!
I want to own a small farm and live with a peace of mind, and have pile of cash being stash in the middle of the farm. 😂
My bank account may not be ready to retire, but my knees lower back are!
True that 😂😂
George wouldn’t understand that
Yes! Nurses work so hard!! Take care of yourself first!!
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
Monica Amanda McClure ’is the advisor that guides me. She’s a verified coach and she helped me see that returns can be made in both bull and bear markets. She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, look - her up
This was helpful. Thank you. I checked her website out. I have sent her an email, and I hope she gets back to me soon.
That “ Merry crisis” 😂 almost make me drop my breakfast 😅. Great video and info about FIRE.
Brilliant explanation.
FINALLY! A Ramsey Solutions video that recognizes conservative SWRs exist. I think there are better studies than the one at honestmath (I think my study is much more usable as one example), but this is progress! Now, George, please tell me you are taking this SWR information to Dave to recant his 8 to 10% SWR advice that he gives to traditional retirees on the main radio show. I don't care which study you cite as evidence, but I have been praying for Dave to change his position on SWRs. I think this is a great start! Keep It Up!
I too thought this was a bit ironic. Just a week ago dave told someone they would be able to live perpetually on the 8-12% average return their portfolio netted without ever depleting the principal
Well, would you look at that. The answer to the question I had last week. I love having discussions with my sister and then being able to send these to her when you clarify something we weren't sure about.
Keep up the great work, George!
To each its own. Sp don't be a hater, George.
I wanna reach FIRE so when I have to wake up super early to go to work one day I can actually mean it when I say, "maybe I don't really need this job!!"
Life if you agree with George, comment if you disagree with Dave
I’m normally a fan George, think you have missed the point for a click bait video 👎.
Its time for Dave to retire and just let it be george and rachel
100%... You get a tasty cup of tea and settle in for a nice podcast after work, then BAM! Unmedicated aggressive stressful rant raising everyone's blood pressure.
Dave is right, without hope there is nothing.
George respects and loves Dave. He isnt going anywhere
I love George Kamel! He is so entertaining while teaching! I wish my high school teachers were this entertaining!
Wow. So glad I watched the entire video! Context is key. George was in NO WAY endorsing the FIRE plan or the 4% rule. He was just stating practically what you would have to do for the plan to work; he then talks about why he doesn't like the FIRE plan itself. He's still on brand with Dave; the caller brought up the clip out of context--hence Dave's reaction--lol
Agreed. Glad to see someone else actually watched the video to compare. Daves caller from Nov 2nd apparently did take this 3% draw out of context and missed George's whole point. Which was to prove how this fire movement has its own flaws and is unrealistic. Dave went a little overboard but George is in total agreement with Dave in the end.
Are we so lost in the numbers that we don't know what either George or Dave are saying? Both are advising against this model.
While it's nice to support George, we should be careful disparaging his boss on his channel regarding the safe withdraw percentage. But yes, George is great!
Only shitty bosses can't admit when they are wrong. All the math says 8% has a high likelihood of failure.
@@thehomeless_trucker Agreed. Dave needs to get a ration of shit for being such an asshole.
Love your show 😊
It's crazy how we have to come up with a number based on how many years we plan to live whereas people with pensions just stop getting money when they die... What do people do when have less money than years? And what if you have no children or no family to help? Our society is in for a really bad time...
There's a reason why pensions didn't last very long... they can't be invested in equities, so the returns possible only equal average inflation.
George, hopefully you take advantage of the Ramsey Solutions to get your book out there then you ditch them. There’s no reason for old delusional Dave to publicly insult you.
Especially since it seems like nepotism will be the way forward in the company.
Team 4%
I could retire at 35, if I drop dead on my 36th birthday
Don’t say that
I will hopefully retire at 57 years old I’m 47 now
7:24. That's some passive-aggressive fortune cookie tidbit right there
50 is my fire goal, very reasonable for more folks with a gov pension at 60, and SS. I am ahead of schedule with a 40% savings rate. I would retire earlier if I could, but not willing to lean fire.
…oh child I heard dat! I recently got a whiff on the FIRE concept from a few friends who thought I did it for I’ve been work free since I was 35 (54 now). I am just lucky for I had a Father who taught me finances/stock and Mother who still bugs me about budget and her crazy Mother who I constantly pestered and left me a hefty chunk. But here is the but, but I had worked a lot. At 19 together with an Aunt got a laundromat, sold it after 5 years (great profits) a few other businesses while employed by United Airlines as Cabin Crew which most my pay I did invest in houses, a strip mall, a few start ups in the Silicon Valley where I live and marrying well. Wish I was still able to be Cabin Crew for I loved every minute of it, too bad I got injured badly in one of the major supermarkets, they paid big time but I paid more with my health and corny as it sounds Health is Wealth. Take care of it
This is the one thing I will always disagree. If you don’t like your job , see what avenues you can go into. Maybe finally doing a business can be the option or sales. And retiring early is a good thing just accumulate money, be smart with the investments. If that’s your goal go do it. Remember that partial advice should be said by people who are already there. Not a shot but this whole jobs are awesome is a bit tiring
I love how George deals with the reality of retiring in your 30s.
Now that the Ramsey team has established that 8% and not 4% is enough for FIRE, it seems much more achievable. My FIRE number is now just $562,500, not the crazy $1,125,000 needed using George’s crazy number. Will retire over the new year. 🎉
YIKES! hopefully you roll the dice right to not run out of money.
@@caseyrichards3212 12% average returns - 4% inflation = 8% that can be withdrawn without touching the nest egg. Dave Ramsey himself addressed this issue on a recent episode of his show. George is being way to conservative suggesting 3-4%
@@sorvojaI did the math and found that some earlier negative return years with 8% withdrawal can completely derail retirement plans.
@@sorvoja good luck with that!
Dave can take out that much because he is insanely rich. I think it is what causes this enormous blind spot on this topic. Good luck 😬
The beauty of the Bridge Account example...at $65K per year, for a married filing jointly couple, any long term capital gains and qualified dividends are TAX FREE! For 2023 you can run up to $89,450 in total income and still enjoy tax free results. And since you don't pay tax on any withdrawals of the principle investments, all $65K could be tax free. I'm guessing the only taxable income you'd have would be any interest earned along the way...most likely well below the standard deduction.
Hmm... George is really contradicting Dave's "you can withdraw 8% every year in retirement" theory. Happy he is doing honest math though ;)
I am surprised that Dave didn't have this video taken down. I am happy about it though, this is a good video, and I like it.
The HonestMath calculation doesn't play out - If I had 100k and took out 4% (non invested and received zero return) It would last 25 years. HonestMath implying that 100k "invested" only lasts 30 years with 3k left @ 4% withdrawl rate? - Nah - Dave's wrong too because you don't get 12% (his fund is closer to 10%) every year, year in and year out. So 8% is way, way too much unless he's planning for a bleed down of the total funds (which he isn't)
But wait, Dave says you can withdraw 7-10% in retirement and you are bashing the 4% rule saying it should be 3% HAHAHAHAHAHAHAHA
You are right. Good callout. I forgot he said that.
The difference being that if you retire at 65, you'll maybe live 15 years in retirement. If you retire at 35, you might live 45 more years. That changes the math dramatically.
@@andrewlamb456 no, Dave says that with his mutual funds and average S&P returns of 12% that you can take 7-10% out and the money will last in perpetuity. Multiple times he's claimed this. And grow with to cover inflation of 2-5%
@@andrewlamb456a 10% withdrawal rate only has a roughly 30% chance of surviving a 20 year retirement.... it's more likely that 65 year old will be out of money around age 75 withdrawing that much every year.... someone retiring at age 65 needs to plan to at least age 90, so no more than about 5% withdrawal rate.
And Dave has told callers in their mid-late 50s who wanted to retire immediately that they can retire if they can live on 10% of thr current balance.
Also... the 4% rule of thumb is based on retiring at traditional retirement age.
I also find this funny/interesting. Also, for those saying that they are talking about retiring at 35, so this is different than Dave's 7%-10%, the comparison here is dependent on time horizons - not age. Dave say's his 7% to 10% works forever and never gives a time limit (I think this is ill informed). If you retire at age 60, you could easily live to age 90. That is 30 years just like George's time horizon cited in the video - George even says as much right after the honest math chart cuts back to him. It does not matter if you retire from age 30 to age 60 or 60 to 90, 30 year survival statistics are applicable to both cases. Finally, if there is a rebuttal that points out tax implications, taxes should be paid out of the withdrawal rate applied in question as to pay taxes on top of it would be to invalidate the results if the assumptions of the study stated that the withdrawal rate represents the whole of the distributions out of the retirement account.
The part of fire I can’t get with is DIY and biking everywhere, even with kids. Mr Money Mustache isn’t for me in that department. I also am not giving up that much of my life today to retire that much sooner. I thankfully love my job 🥳
Nice to see Dave hasn't followed through on his threat to take this video down.
Quitting the "W-2, leave balances, and mandatory HR training" life doesn't mean quitting life! Financially independent at 45 means, yeah, I don't have to go to the useless ops meeting. If I want to take the trailer to the lake on Tuesday-Thursday (when nobody else is out there!), I can. But, I have some small contracts too, doing stuff I find enjoyable, making some money for fun spending, all on my terms.
8% is fine, but its more likely than not to stagnate the growth of the portfolio.
Dave, Dave, check this out!!😂
Sorry, I do not agree with the reasons. Who would not want to have the opportunity of being financial independence.
I love working as a matter fact I considered myself to be a workaholic.
But I love the FIRE movement bc I want to spend more time with my family. With that being said, I probably will always work on PRN basis.
I want to work because I want to not bc I have to Kamel. I think that’s the point you missing.
I think you miss the pt. I make a great salary, I have all the flexibility I could want, work from home, and like my coworkers. I STILL want to stop working, and just be done with it. Why? Cause I put in my time. I am nearly 50, and this has been a plan for 45 years. So retirement for me is not an evil thing, and work isnt either but I just want to do what I want. Something to be said about working to a goal and then ENJOYING that goal.
Does anyone else think it's weird that George has to put the Ramsey brand at the beginning of the video and in the watermark of the video? I'm assuming that Ramsey Solutions collects a portion of this channel's revenue stream, which is kind of limiting George in ever developing his own brand. I wonder how long that contract is that George has to split revenue with Ramsey Solutions. I'm assuming that Ramsey Solutions helps with George's production and all that but I guess this whole fiasco is making me question what the terms of the relationship is between this channel and Ramsey Solutions
Cant help and notice the honnest math page slide shows just 5% withdrawl will kill your retirement in 20 years...but 8% per Dave is fine 😂 so you really need to withdraw around 2.5% to be safe with Fire and 3.5% if retiring around 55. To really do effectively FIRE you gotta move to a cheaper country than the US.
So this is the video your boss wants taken down because he doesn't understand math and doesn't get that CAGR doesn't mean you get the same rate year after year guaranteed. George, if you're reading this, you're too good for Dave. He's a poor leader and doesn't deserve you after that public lashing. Anthony O is doing great solo and so will you when you inevitably peace out from that cult-like workplace he runs.
Retirement doesn’t have to mean do nothing - it can mean do whatever you want! Why would philanthropy be a bad thing? I hate this assumption!
Yeah... I think I'm designed to lay on a beach, wearing a speedo, sipping Mai Thais, instead of working. Think I'll retire early, anyway.
The chart uses a 30 percent bond mix, which means that the annually rate of return is like 5-6 percent overall according to my math.
No idea why Ramsey is so against people not working if they can afford it. (We never see him talk about heirs and heiress of mega fortunes not working!)
It’s so strange, by this logic you should never retire. What is it about age 65 that makes retiring “acceptable” to Ramsey?
My dad retired at 70 and after seeing his struggle I never want to have to wait to retire! Life is short in the grand scheme of things. My husband wants to retire early by 50 ish and I will support that mission 💯
Hi George, yet more great content, thanks. I've been through all my expenses, bills are £403.4 per month, not including food, so I reckon 12 months will be £12,000 minimum, and 25 times that gives me £300,00. Cool.