Hello everyone - I would love to hear your thoughts on the video and if it helped inspire you on your path to wealth. (Please hit the like button & subscribe)
What should I do if I am 38 and working as a real estate agent with no employer match for 401K or anything else? Should I start a Roth IRA and how should I do that properly?
Absolutely - Starting a Roth IRA is a great option, as long as you're under the income limits. I would highly recommend getting started with one. You can contribute up to $7,000 into one in 2024, and you have until April 15th to contribute up to $6,500 for 2023. Use low-cost ETFs to avoid unnecessary fees. If interested, I'll link a couple of videos here that might be helpful for you to watch. ruclips.net/video/gX2dcPneqaQ/видео.html (IRAs) ruclips.net/video/LL-lkcM1_4U/видео.html (S&P 500) ruclips.net/video/QVUqNbvaGWI/видео.html (Dollar-Cost-Averaging)
This video resonates with me because it describes basically the exact path I've taken. I started saving / investing at the age of 19 when I got my first real job as an engineering intern. I continued after I started full-time. I've worked to increase my income through promotions and endeavors on the side. But with every pay increase, I always made sure to save a considerable portion. And even doing so, I've never felt like it was that big of a sacrifice. I was fortunate enough to meet and marry a woman with the same values and career trajectory as myself. We bought a modest house and modest cars even though we could afford much more. But we came to the conclusion early on that those items wouldn't actually improve our quality of life. Now we're knocking on the door of 40 years old and have healthy 7 figure worth. No crazy investing tactics, just passive index funds with consistent, honest contributions. No wild leveraging schemes, just reasonable and carefully considered purchases. No inheritance, just a healthy amount of hard work on our careers. It doesn't happen overnight, but it does happen. And it truly is a snowballing effect once you get the foundation built.
Thank you so much for sharing your journey! I’m happy to hear that the video resonated with your path. I’m sure your experiences and insights can help others as well. Glad you found the channel and checked out the video-thanks for the comment!
My story. Good but not great salary. Saved and invested from 18 y.o. - very small money at first. Into the 1% today. No lottery, bitcoin or inheritance needed. Dropped expensive gadgets, clothes, cars, furniture etc. Family, friends and fun is what counts - and its for free!
Thank you for sharing! It’s great that you started saving and investing at the age of 18. What are you invested in, and are you saving just 1% of your salary? I completely agree that family, friends, and enjoying life are what really matter-along with our health, of course. One way to feel rich in life is to have few desires and focus on the most important things.
This was super informative and full of hope. I appreciated the message that the ordinary can become financially secure. Also love the new stage. Keep up the great work.
Thank you for your comment! I'm glad you enjoyed the video. When choosing an ETF for the S&P 500, there are several options available, and they are essentially identical as long as you're selecting a low-cost ETF. Some good choices include VOO, SPY, IVV, and SPLG. I typically recommend SPLG because its shares are priced around $60/share and that's a little easier for many people. If you're interested in learning more about the S&P 500, including the best places to set up a brokerage account, its history, composition, performance, and more, I'll include a link to a video that covers everything you need to know about the S&P 500. I'll also provide a link to the calculator featured in the video. S&P 500 Video: ruclips.net/video/LL-lkcM1_4U/видео.html Calculator: www.360financialliteracy.org/Calculators/401-k-Savings-Calculator
Hi! I live in Europe. Do you think that it does matter which S&P500 do I choose? The lowest price is by Xtrackers S&P500 for me atm. And another question does it make any sense to pair it with something like EQQQ or just leave it solo? Thanks for any advices !
If you're looking for a European ETF for the S&P 500, focus on the expense ratio and aim for a low-cost option. In the U.S., many S&P 500 ETFs have an expense ratio of around 0.03%. Depending on your brokerage, you might have access to options like VUSA.AS or others such as CSPX and VUAA. While I'm not familiar with all the ETF choices available to you, these are a few worth considering. This video can help you grasp everything you need to know about the S&P 500: ruclips.net/video/LL-lkcM1_4U/видео.html Think of EQQQ as a more aggressive version of the S&P 500. It's about 50% technology, compared to the S&P 500's 30% in technology companies, making EQQQ more volatile. There's a 45% overlap between the two ETFs. For instance, in 2022, the S&P 500 dropped around 18%, while EQQQ dropped around 34%. However, in good years, EQQQ has outperformed the S&P 500. It's a higher risk, higher reward investment. It's fine to have some of your portfolio in it, but for safety, consider keeping the majority in something like the S&P 500, which has an excellent long-term track record.
@@MikesFinancialEdge So I would do like 70/30 Portfolio where 70 % will be S&P500 and 30% EQQQ should be fine right? That's what I was considering. Well, thank you very much ! Appreciate your answer!
That's a fairly common ratio between those two ETFs that many people choose. I feel the S&P 500 is already pretty overweighed towards the technology sector, so for myself, I don't see the need to add the QQQ. However, in recent years, the technology sector has been the outperforming sector, and there's a very good chance that could continue for a while. No one can predict the future, though.
@@MikesFinancialEdge I have one more question. So I live in Europe, so theres still risk of EUR/USD, I see alot of Eurpean invest 70/30 but MSCI World + EM. Do you think that even that I have to take the risk EUR/USD will my S&P500 still outperform MSCI World + EM ? Is that just like high risk high reward for us European or still a safe pick? How do you see that? Thank you for response !!!
Hi Mike, buying sp 500 index fund as a foreigner, we need to do a local and US currency exchange each time, do you think this would have big impact on my return in the long-term? Or its just a small amount can be neglected..
How much is the currency exchange fee you are paying, and what country are you in? Normally, there should be some low-cost funds available to you that mimic the S&P 500 and are available in your currency.
Hello Mike, your videos really are a piece of gold! This is the financial advice especially young people need to hear, my thoughts on (not only) this video are really positive, thank's for your useful advice!
@@MikesFinancialEdge many people like me here who are 40 plus and have money but haven’t start investing yet. Some of them invested in real estate only. So can you make video for us how we can start investing now
I'm not as familiar with all your options in Canada, but you can certainly invest in U.S. stocks using low-cost ETFs. You have accounts called RRSP that allow you to contribute pre-tax dollars in a retirement account. I also think you have tax-free savings accounts (TFSA) that you might look into. You can check places like Interactive Brokers to set up an account. There are others though. If you have not watched the following videos, they might be good to take a look at. ruclips.net/video/LL-lkcM1_4U/видео.html (S&P 500) ruclips.net/video/QVUqNbvaGWI/видео.html (Dollar-Cost-Averaging)
An HSA can be a great retirement account and, if used properly, it's really the best type. If interested in learning all about the best ways to use one, check out this video. ruclips.net/video/bwxhtmGhkss/видео.html
The 401k, IRA, TSP, 403b, etc... are mostly tax deferred accounts for long term investments. You still have to pay the taxes! Meanwhile... Long term capital gains have zero federal taxes, and you don't have to wait until 60 to access the money 💰💰💰 Traditional retirement accounts are perhaps the worst tool to use for reaching financial freedom fast. We get match dollars. But they're wholly inaccessible without penalty until 15 years before life expectancy. The 401k model is, work for 40 years, 20 to 60, then spend off 40 years of savings in 15 years. Meanwhile, spending in retirement actually goes down! The current model recommended across society keeps us locked into jobs. Certainly doesn't prioritize freedom 😢
It depends on the type of retirement account someone uses. If someone contributes to a Roth IRA, they can withdraw their own contributions at any time without taxes, and once in retirement, all withdrawals are tax-free. Many companies now offer both traditional 401(k) or 403(b) and the Roth versions, providing more opportunities for tax-free withdrawals in retirement. Regarding long-term capital gains, you don't pay "income taxes" on those, but rather capital gains taxes on the earnings. However, for most people, this tax rate is usually lower than their income tax rate and may even be zero if their income is low enough. The challenge arises from the fact that society has made many advances in extending lifespans, yet there hasn't been sufficient discussion about financing these extra years. Social Security only aims to replace around 35% of someone's income, highlighting the need for individuals to plan for a significant portion of their retirement income themselves. Tax-deferred accounts can play a crucial role in this planning. Moreover, having and investing in a personal brokerage account outside of retirement accounts adds flexibility to retirement planning. Those aiming to retire earlier than 59.5 need to be diligent super-savers and investors, utilizing personal brokerage accounts and Roth IRAs, if they qualify, in addition to any 401(k)s. However, the challenge for many is the temptation to withdraw and use accessible funds for unnecessary purchases, leaving them ill-prepared for retirement stability. It's often beneficial for individuals to treat their retirement savings as off-limits, safeguarding their future security.
I hate hearing about teachers. Many teachers, especially the ones around here in the NE US, get incredible benefits packages including a significant pension. One school district here the teachers get a 6 figure pension annually.
Yes, they typically have very good benefit packages, and if they have a full career, the pensions can be very good. In today's environment, the benefits associated with any job are an important consideration.
60% of property taxes... To float the lifestyle of full-time babysitters. But if you homeschool your kids, you don't get to touch any of that. The hypocrisy stinks 🦨🦨🦨
Hello everyone - I would love to hear your thoughts on the video and if it helped inspire you on your path to wealth. (Please hit the like button & subscribe)
What should I do if I am 38 and working as a real estate agent with no employer match for 401K or anything else? Should I start a Roth IRA and how should I do that properly?
Absolutely - Starting a Roth IRA is a great option, as long as you're under the income limits. I would highly recommend getting started with one. You can contribute up to $7,000 into one in 2024, and you have until April 15th to contribute up to $6,500 for 2023. Use low-cost ETFs to avoid unnecessary fees. If interested, I'll link a couple of videos here that might be helpful for you to watch.
ruclips.net/video/gX2dcPneqaQ/видео.html (IRAs)
ruclips.net/video/LL-lkcM1_4U/видео.html (S&P 500)
ruclips.net/video/QVUqNbvaGWI/видео.html (Dollar-Cost-Averaging)
This video resonates with me because it describes basically the exact path I've taken. I started saving / investing at the age of 19 when I got my first real job as an engineering intern. I continued after I started full-time. I've worked to increase my income through promotions and endeavors on the side. But with every pay increase, I always made sure to save a considerable portion. And even doing so, I've never felt like it was that big of a sacrifice. I was fortunate enough to meet and marry a woman with the same values and career trajectory as myself. We bought a modest house and modest cars even though we could afford much more. But we came to the conclusion early on that those items wouldn't actually improve our quality of life. Now we're knocking on the door of 40 years old and have healthy 7 figure worth. No crazy investing tactics, just passive index funds with consistent, honest contributions. No wild leveraging schemes, just reasonable and carefully considered purchases. No inheritance, just a healthy amount of hard work on our careers.
It doesn't happen overnight, but it does happen. And it truly is a snowballing effect once you get the foundation built.
Thank you so much for sharing your journey! I’m happy to hear that the video resonated with your path. I’m sure your experiences and insights can help others as well. Glad you found the channel and checked out the video-thanks for the comment!
The path that so many people benefit from, too.
Yes - Most people don't get around to saving and investing on their own, but many participate in their companies 401K.
Watched again because this is full of good advice. What a great list of money rules towards the end of the video. Very helpful information!
Thanks for sharing those thoughts.
@@MikesFinancialEdge Really is the best video on this topic!
I appreciate the comment!
My story. Good but not great salary. Saved and invested from 18 y.o. - very small money at first. Into the 1% today. No lottery, bitcoin or inheritance needed. Dropped expensive gadgets, clothes, cars, furniture etc. Family, friends and fun is what counts - and its for free!
Thank you for sharing! It’s great that you started saving and investing at the age of 18. What are you invested in, and are you saving just 1% of your salary? I completely agree that family, friends, and enjoying life are what really matter-along with our health, of course. One way to feel rich in life is to have few desires and focus on the most important things.
Awesome video🎉🎉
Thank you! Happy to hear you like it!
Thanks you sir giving information 😊
Thank you for the comment. Glad you liked the information!
Following from Facebook. Great info.
Thanks for following and the comment.
I didn't know there was a Facebook page, too.
Yes, same name as this channel, but it's just the same videos.
Keep going MIKE!!!! Great content
Thanks! Good to hear from you again and thanks for the comment.
This is great information! Every young adult should watch this and parents should encourage their kids to watch it.
Thanks for the comment. I wish I could have watched this when I was in my teens or 20s.
This was super informative and full of hope. I appreciated the message that the ordinary can become financially secure. Also love the new stage. Keep up the great work.
Glad to hear the new setup looked good and that you found the video informative. Thanks for the comment!
Great video however which S&P ticker are you talking about, SPY? Also can I have a link to that website calculator?
Thank you for your comment! I'm glad you enjoyed the video. When choosing an ETF for the S&P 500, there are several options available, and they are essentially identical as long as you're selecting a low-cost ETF. Some good choices include VOO, SPY, IVV, and SPLG. I typically recommend SPLG because its shares are priced around $60/share and that's a little easier for many people.
If you're interested in learning more about the S&P 500, including the best places to set up a brokerage account, its history, composition, performance, and more, I'll include a link to a video that covers everything you need to know about the S&P 500. I'll also provide a link to the calculator featured in the video.
S&P 500 Video: ruclips.net/video/LL-lkcM1_4U/видео.html
Calculator: www.360financialliteracy.org/Calculators/401-k-Savings-Calculator
I like the SPLG
I recommend that one often.
Hi!
I live in Europe. Do you think that it does matter which S&P500 do I choose? The lowest price is by Xtrackers S&P500 for me atm.
And another question does it make any sense to pair it with something like EQQQ or just leave it solo?
Thanks for any advices !
If you're looking for a European ETF for the S&P 500, focus on the expense ratio and aim for a low-cost option. In the U.S., many S&P 500 ETFs have an expense ratio of around 0.03%. Depending on your brokerage, you might have access to options like VUSA.AS or others such as CSPX and VUAA. While I'm not familiar with all the ETF choices available to you, these are a few worth considering. This video can help you grasp everything you need to know about the S&P 500:
ruclips.net/video/LL-lkcM1_4U/видео.html
Think of EQQQ as a more aggressive version of the S&P 500. It's about 50% technology, compared to the S&P 500's 30% in technology companies, making EQQQ more volatile. There's a 45% overlap between the two ETFs. For instance, in 2022, the S&P 500 dropped around 18%, while EQQQ dropped around 34%. However, in good years, EQQQ has outperformed the S&P 500. It's a higher risk, higher reward investment. It's fine to have some of your portfolio in it, but for safety, consider keeping the majority in something like the S&P 500, which has an excellent long-term track record.
@@MikesFinancialEdge So I would do like 70/30 Portfolio where 70 % will be S&P500 and 30% EQQQ should be fine right? That's what I was considering.
Well, thank you very much ! Appreciate your answer!
That's a fairly common ratio between those two ETFs that many people choose. I feel the S&P 500 is already pretty overweighed towards the technology sector, so for myself, I don't see the need to add the QQQ. However, in recent years, the technology sector has been the outperforming sector, and there's a very good chance that could continue for a while. No one can predict the future, though.
@@MikesFinancialEdge I have one more question. So I live in Europe, so theres still risk of EUR/USD, I see alot of Eurpean invest 70/30 but MSCI World + EM. Do you think that even that I have to take the risk EUR/USD will my S&P500 still outperform MSCI World + EM ? Is that just like high risk high reward for us European or still a safe pick? How do you see that?
Thank you for response !!!
Hi Mike, buying sp 500 index fund as a foreigner, we need to do a local and US currency exchange each time, do you think this would have big impact on my return in the long-term? Or its just a small amount can be neglected..
How much is the currency exchange fee you are paying, and what country are you in? Normally, there should be some low-cost funds available to you that mimic the S&P 500 and are available in your currency.
Hello Mike, your videos really are a piece of gold! This is the financial advice especially young people need to hear, my thoughts on (not only) this video are really positive, thank's for your useful advice!
Thank you for your comment and sharing your thoughts. I appreciate the feedback and support.
Really great channel
Thank you
Great video! Is that a piggy bank on that side table? It looks so cool!
Well, it's actually an antique cookie jar, but it holds some very special family history.
Great content as always.
Can you make video for Canadian please !
Most of the topics and information in the videos would apply to those living in Canada as well. Did you have a particular topic or idea in mind?
@@MikesFinancialEdge many people like me here who are 40 plus and have money but haven’t start investing yet. Some of them invested in real estate only. So can you make video for us how we can start investing now
I'm not as familiar with all your options in Canada, but you can certainly invest in U.S. stocks using low-cost ETFs. You have accounts called RRSP that allow you to contribute pre-tax dollars in a retirement account. I also think you have tax-free savings accounts (TFSA) that you might look into. You can check places like Interactive Brokers to set up an account. There are others though. If you have not watched the following videos, they might be good to take a look at.
ruclips.net/video/LL-lkcM1_4U/видео.html (S&P 500)
ruclips.net/video/QVUqNbvaGWI/видео.html (Dollar-Cost-Averaging)
What do you think about HSA?
An HSA can be a great retirement account and, if used properly, it's really the best type. If interested in learning all about the best ways to use one, check out this video. ruclips.net/video/bwxhtmGhkss/видео.html
Thanks much I will check out the video@@MikesFinancialEdge
The 401k, IRA, TSP, 403b, etc... are mostly tax deferred accounts for long term investments. You still have to pay the taxes!
Meanwhile...
Long term capital gains have zero federal taxes, and you don't have to wait until 60 to access the money 💰💰💰
Traditional retirement accounts are perhaps the worst tool to use for reaching financial freedom fast.
We get match dollars. But they're wholly inaccessible without penalty until 15 years before life expectancy.
The 401k model is, work for 40 years, 20 to 60, then spend off 40 years of savings in 15 years. Meanwhile, spending in retirement actually goes down!
The current model recommended across society keeps us locked into jobs. Certainly doesn't prioritize freedom 😢
It depends on the type of retirement account someone uses. If someone contributes to a Roth IRA, they can withdraw their own contributions at any time without taxes, and once in retirement, all withdrawals are tax-free. Many companies now offer both traditional 401(k) or 403(b) and the Roth versions, providing more opportunities for tax-free withdrawals in retirement.
Regarding long-term capital gains, you don't pay "income taxes" on those, but rather capital gains taxes on the earnings. However, for most people, this tax rate is usually lower than their income tax rate and may even be zero if their income is low enough.
The challenge arises from the fact that society has made many advances in extending lifespans, yet there hasn't been sufficient discussion about financing these extra years. Social Security only aims to replace around 35% of someone's income, highlighting the need for individuals to plan for a significant portion of their retirement income themselves. Tax-deferred accounts can play a crucial role in this planning.
Moreover, having and investing in a personal brokerage account outside of retirement accounts adds flexibility to retirement planning. Those aiming to retire earlier than 59.5 need to be diligent super-savers and investors, utilizing personal brokerage accounts and Roth IRAs, if they qualify, in addition to any 401(k)s.
However, the challenge for many is the temptation to withdraw and use accessible funds for unnecessary purchases, leaving them ill-prepared for retirement stability. It's often beneficial for individuals to treat their retirement savings as off-limits, safeguarding their future security.
HSA is not tax deferred. It is completely tax free.
I hate hearing about teachers. Many teachers, especially the ones around here in the NE US, get incredible benefits packages including a significant pension. One school district here the teachers get a 6 figure pension annually.
Yes, they typically have very good benefit packages, and if they have a full career, the pensions can be very good. In today's environment, the benefits associated with any job are an important consideration.
60% of property taxes... To float the lifestyle of full-time babysitters.
But if you homeschool your kids, you don't get to touch any of that. The hypocrisy stinks 🦨🦨🦨