I wish this video had 100k views! Thank you all for providing such amazing quality content for all to see! The natural conversation between Erik and Zacc discussing financial freedom in a no-shame environment is so welcoming on such a sensitive topic! Great job team!
The exact information and resources I need for building a quality financial situation. I'm a 25 year old young man and trying to set my son and I's life up for sustainable success. This should be understood by every single person before they go out into the world. This knowledge is requisite! Thank you ❤
Letters and numbers make sense to me! People think I’m crazy for my 3hr per day round trip commute to work but it’s a part of my career path and allows me to be disciplined enough to absorb super valuable education like this. Your channel is quickly becoming one of my favorites. I need to go back to the last one about creating a trust as that’s next on my list, but was holding off due to cost.
Thank you so much for tuning in! So glad to hear it is helpful! Definitely give that one a listen. Jim is fantastic and the reason I love having him and his team as partners is because: 1. They are so good at what they do. 2. They are much less than most of the estate planners I've interacted with, so cost may not be as scary as you may think :)
I greatly appreciate the letters and numbers approach, it helps people understand what needs to be done in sequence vs simultaneously. I work in business finance and wish more of my clients had seen your content. I plan to share it profusely!
Letters and numbers make sense. Thank you for sharing your knowledge. I'm new at this and have found all your talks, that I have watched so far, very helpful and enlightening. You guys make a great team.
ABC, it's easier than 1, 2, 3. Outstanding. It's great to see Zacc Call again on the Retirement Nerds RUclips channel! You guys rock!! I bought the book today; I will leave an Amazon review.
After watching your videos, I recognized the value and felt ready to select an advisor. I tried a website that gave me five firms, but was not comfortable with any of them. I emailed Capita and met with an advisor yesterday. I was a little nervous to meet with someone besides Zacc, because I feel like I’ve already interviewed him and would feel safe with him, but his advisor was fabulous, too. Now I can’t decide if I should buy one book or a book for each of my adult kids. I hope they find it all as easy as ABC, 123. 😊
Thank you so much for this! Zacc is so great to be willing to come on and share his wisdom. He is great. Truly. What I appreciate just as much is the team he has built that is also great - as you experienced 🙂 they are wonderful partners of the channel. And you made it to the end!
ABC123 :) Another great collab! Erik and Zacc are a couple of my Personal Finance favorites. Genuinely great guys that share important info in an easy to digest format. Keep up the great work! I’ll stay on the train.
Letters and numbers make sense to me. Love how much information that the two of you always impart. Giving serious consideration about reaching out to Capita as we get ready to retire in the next year!
Letters and Numbers.... I'm working in project 6 but only have one item in project 4. I'll be getting the rest done very soon. Thank you for all the great information. It's definitely a long vid but very well worth the time. Also should mention, this is the first time I've seen your videos. Great job.
Oh cool! Glad you found us! Yeah this video is kind of a culmination of several concepts we covered over the past year and now applying them 🙂 Congrats on being in project 6! Project 4 can be relatively quick. Here is an even more in-depth video on that: ruclips.net/video/nkFQmsdCW-I/видео.htmlsi=pXCLKkaO9GjofISp
@~24:00 Yes! Disability insurance is huge! I used to work in healthcare. So many people think that the worst thing that can happen to them is to die-- it's not.
I like the letters and numbers because it recognizes that yes there are clear priorities when it comes to the financials but the 'life' stuff surrounding them has more flexibility. I consume a lot of financial content and you have some of the best out there. This video reminded me with our oldest hitting 18 and our assets significantly changed from when we did our estate plan almost 20 years ago it's time to revisit. Thanks for another great video!
That was outstanding. Watched the entire thing (yes, the letters snd numbers were a great idea, Zacc). Going to have my 20 something son watch this video. Thanks! These videos with Erik and Zacc are the best planning discussions on the web.
Letters and numbers make sense to me! Thank you for such a great podcast! Really enjoyable content and really appreciate all of the advice!! A lot to think about and I look forward to seeing where I am in 5 or so years.
Gentlemen, another brilliant video. I hope you’ll do more collaborations. The abc (parallel) vs 123 (sequential) made sense to me. My only regret is I’m 70 and just retired 2 months ago so I’m kinda late to the party. Still good advice I can share with my adult children.
Amazing video! Thank you for such a detailed explanation of all the 7 projects. I do like the number & letter system!! Keep up the great job you both do. I love your partnership ❤️
This video is incredible - really a one-stop shop for DIY financial planning. I especially appreciate the section about offense vs defense as so many other personal finance frameworks (i.e. Baby Steps, FOO) don't take into account your income and really just make you feel bad about yourself if you're not where you need to be offensively. I do have a couple questions regarding the portion where you mention determining your income based on the COL in your state: - Do you have a preferred source for determining this information? I came up with ~$60,000 for Arkansas but that seems high to me, and I'm also not sure if that's per household or if it includes singles, dual incomes, or families? - How would you adjust for a SAH parent? I would imagine part of the COL includes childcare costs, which would be negated by the SAH parent. Perhaps increase the cost needed per child by a lesser amount? I understand it's just a back-of-napkin analysis, but it's super helpful to kind of determine if your issues are more income-based or habits/spending-related. I'm 25, married and making $61,000 as the sole income for our household with 1 infant. Certainly explains why things feel so tight - but I'm working on myself a lot. Finished a bachelor's on year ago, a master's 3 months ago, and on track to becoming a CPA within the next year. Hoping that all this investing in myself will get us into a much better offensive position in the near future. Thanks for all the invaluable insights Zacc & Eric!
Congratulations on your well-thought-out book. I like how you grouped the to-do list in letters & numbers. I listened to your Social Security interview with Erik, too. You explain things to make it easier to understand. You brought up a matter that I was thinking of doing with my 85-yr old Mom....putting her home in my or my sister's name. From what you said, I won't be doing that. Thanks a bunch! We'll do a trust.
Zacc is so great! Thank you for watching to the end! Have you seen the estate planning video on the channel? Could be super helpful for your mom. ruclips.net/video/nkFQmsdCW-I/видео.htmlsi=R_rPriMjCnnRAPnr
I’m a Commercial Banker and request Personal Financial Statements (Net Worth Statement) from customers all the time. If you need a form, contact a local bank (many even have one other their website for free). Then you have a template to start with!
This was great guys. Appreciate it! I wish it had a bit more for those who are less inside of a traditional W-2 situation with FSA, HSA, 401(k) plans, but might be more self employed at the lower income spectrum. The phases work using letters and numbers, but I'm trying to educate family members who don't have jobs with some of these plans. Anyway, thanks again, and I love listening to you guys! When is the ebook available?
Question for Zacc - heard you mention on a previous video that your company wouldn’t do a flat fee plan for a client - instead your model is a % of AUM. What about a client close to retirement who doesn’t have many assets outside of a 401K and home equity…..these are not assets you could manage. I’d love advice on upcoming choices such as pension decisions, social security, withdrawal strategy from 401k, etc. Anyway, just curious about this when my assets are sort of tied up at the moment and not in scope for being “managed”. Thanks!!! You are both awesome and I love your videos.
Hi there! Thanks for the message. We are totally open to consultations that don't result in client relationships. I feel that is part of doing good in the world. You might also get good advice from us and decide 5-10 years down the road that it is time to have us help in a deeper manner. So I would say give us a call and we can chat. Also, if there is extensive work on the planning side to do, we can provide a few solutions that would put you in contact with flat fee planning solutions. (XY Planning network, Garrett Planning Network, etc)
I'll be real honest. I was following the letters and number system very astutely at first like a proper student. But then as the conversation flowed into this nice podcast feel, I just kinda zoned out the particular letter or number and just kinda focused on the vibes. Like I could see the infographic and vibe of it being a whole new section and tell from there, that there were subsections. But I can't directly recall the particular letters or anything like that now that I finished the video, even though I feel like I grasped everything and can regurgitate everything to someone else, if that makes sense. Perhaps like static bullet point text on the video that stayed for all the subsections of each "project" would have been more memorable and then like they could vanish for the next project. But perhaps that would just incentivize people skipping around and not necessarily listening to the full discussion, naturally, as it was intended. As younger individual, I feel pretty stunlocked. I am doing well with the emergency savings and then setting aside some cash for retirement and some small non-retirement investment etc. But my income is not very high. I am not a W2 employee so things like employee stock purchase plans and company matches are not options for me. I also rely a good deal on my health insurance atm and would not want a high deductible plan for an HSA. This feels like it cuts off a lot of the magic of the early project steps for me. So it feels like my primary focus is instead then increasing income in order to even have a family, and assets, and many of the things discussed here. But then I feel concerned about missing out on some of the early planning that could assuage me while I am young and have the time to allocate to setting things ups. When should I even consider a Will, Trust, Net Worth Statement, etc.? I feel like particular documents that might require counsel from lawyers will cost a hefty but worthwhile fee and that I would definitely be willing to put in the work now to handle these things. But my fear is that these things are not built to be modular for lower income individuals. The base fees for lawyers to even breathe on a document will make revisions far more gatekept than for higher income individuals. And so without a home, or kids, etc. it puts me in quite the pickle. Do I pay to have this stuff done now and then pay to have it revised later? Or should I just write out my plans, focus on increasing income and wait a bit more to spend on a Trust and all these things? Especially when Wills can include like sentimental items and Trusts can have such particular instructions, it feels like I would be revising these documents every other year if I don't wait until I am in my later 30s or early 40s, with a home and family etc.
Appreciate you watching and your open feedback! Trusts really come into play once you own property - think a house. You can do one before then, but the big assets are what you're trying to avoid going to probate with a trust. A wife and kids really add to the need of making sure you have some sort of estate plan in place. We both reference our Estate Planning partner - Jim. This is a video with him: ruclips.net/video/nkFQmsdCW-I/видео.html To give you an idea of costs - it's a flat fee of $695 for a complete estate plan (Will, Trust, power of attorney, healthcare directive). If you have a home and want them to prepare the deed, it's an additional $250, so less than $1,000 for everything. There are other services out there that are 100% online without human interaction that can be less, and then if you want a human, it's an hourly fee, so lots of more budget options if needed.
@@Theretirementnerds First, thanks for the prompt and sizable response! That’s very refreshing in this fast paced crunch RUclips environment. It really stands out and I appreciate it greatly! Wow, that’s really not bad at all on pricing imo. It’s very funny though. I immediately checked your channel to find an answer after this and then watched the entire conversation with Jim😂. So, it’s very funny you mentioned that, it really did answer my exact question at one succinct point in that convo. You were there, so you obviously know the answer. But for any lurkers who read my comment, felt similar, and then read your answer, basically Jim said a Will and/or Trust is not ALWAYS necessary for everyone as states all have their own preset Wills in place and a “probate” process. But for the VAST MAJORITY of people a crafted Will and/or Revocable Living Trust is a better option. Then they explained how a Revocable Living Trust was their preferred selection for most people over just a Will. But how it actually benefits many people to have both with the Will being supplementary to a Trust and serving to address particulars without, I guess, over complicating the Trust. They also directed answered my question, they said that you don’t need to stress over a Trust until you have some assets like a home or real estate and if you are unmarried with no children. Perhaps that can be for later. He did stress that a Will can still help in those situations to supercede the state’s Will and that you should still consider Health Directives and Powers of Attorney etc. in case something unfortunate occurs in your life. The particulars and explanations for all those terms, are purposefully not included by me so you lurkers will still do the right thing and give that video some views and time. ✊🏿 Anyway, I feel a lot better now, thanks. The price of a Will and all really is not bad at all. And I do not think I will setup a Trust until I have property, like you suggest. Then I will put other large assets into it and flesh it out more. I think I am going to just continue saving and investing and give it another year then see where I am. But now I can allocate some savings to the side for an estate plan knowing a rough ballpark. So thanks. I think I will take the loss on not setting up a Trust at first if a package is offered with that, but setup everything else like a Will and some of the paperwork if I get disabled/injured. And I will let them know, I plan on including a Trust to the equation later above the entire estate plan structure. To make things easier for them in future and hear out some other types of Trusts that might fit me. Thanks again!
Absolutely loved this video. I feel the level of detail and steps beyond debt pay down and retirement savings in some other videos really sets you apart! ABC vs 123 is not a necessary distinction to make, in my opinion. Where you're being prescriptive to people that want to follow your advice, I think it's fine to just give a one-size-fits-all order to follow so there's no confusion, but I understand why you did it. If you're fielding questions... Should kiddos college savings all go into a 529 account? Any reason to put it some of it in a different type of account?
That is a great question! There are multiple factors that might lead you into one of several account types. A 529 plan has some of the best tax benefits. Along with tax benefits usually come restrictions like needing to use it for education purposes. The other types to consider would be custodial accounts, often called UTMA or UGMA accounts. The major difference is that custodial accounts can be used for whatever purpose (non-education as well) however, this money belongs to the minor. In some states when you reach the age of majority, the assets automatically convert into an individual account in the child’s name. Some people don’t like that worrying that the young adult will spend it frivolously. Another common option, that is often overlooked, is a brokerage account in the parents’ name. The parents know the money is really set aside for their kids’ education, however, the official account owner is the parent for legal and tax purposes. The parents maintain lot more flexibility and control by leaving it in their own name longer. There are no restrictions around how you use funds like that. Little be less tax benefit in this last option. So it boils down to what you will use the money for and how much you are willing to trade off flexibility/control for tax benefits.
This is super helpful, I did not know about custodial accounts and will look into it! Yeah, of course my concern with the 529 is either they choose not to go to college and we eat the penalty or, maybe worse, they feel pressured to go. It feels a bit odd to hedge a bet that they won't want further education... But different strokes for different folks, I suppose! Thank you for the replies & keep being amazing ^_^
@@bensatterfield5278 my pleasure! I’m gonna give you a little pro tip to noodle on with custodial accounts. The benefit of a custodial account is that the income and gains are tax at the minors rate. Given that most minors don’t have much income, this is typically at better rates than parents. Here is the catch… The IRS widened up to this potential of hiding assets in the kids names. So they introduced something called the kiddie tax. Basically everything over a certain threshold tax at the parent rate. Here is the trick… Every year I make sure to log just enough gains and income on purpose. The kids pay zero tax on it. I don’t go over the threshold where we are taxed at the parent rate. Basically, I’ve never paid taxes on my custodial accounts. That is re-creating all the benefits of a 529… Without the restrictions. Now the only thing I am up against is the fact that the custodial account will revert to the kids ownership at a certain age.
Great video! Correct me if I’m wrong but i believe you still get a 50% stepped up basis if the deed includes mom / child and mom dies. Opps yes letters and numbers make sense 😊
Numbers, letters, ... I haven't tried to apply the principles to know if the distinction helps. How do you get this message into high schools? It would need to be tailored a bit, but you've outlined the basic building blocks to a sound financial future. I don't know if having this clear message when I was just starting out in the working world would have changed me, but I'd like to think having this information buried in memory would have made a difference. I've done just fine, but some of that was chance and some, overcompensating on the savings side. If I could give 25 year old me any advice, it would be to make sure I accounted for Projects 1-3 and then allow myself to spend some of any remainder. I simply socked it away, mostly in the bank, but some in a few mutual funds. I am living proof that you can save too much. It's all about balance. Thanks, guys.
If i am offered both a 401k and a 457 through my employer, but im not capping my 401k, is there a reason to contribute to the 457 as well? i.e. put maybe 10% into each one? Or just max out one of them?
Love the channel. Small comment both the debt snowball and avalanche methods aren’t actually the most efficient to save money but emotionally most people like them since they’re easy. An example would be Debt A is $10 at 10% interest, Debt B is $50 at 5% interest, Debt C is $100 at 1% interest. Debt B is costing you the most per month even though it’s neither the biggest interest rate nor the largest amount. If youre willing to do the math calculate interest that will accrue on each loan in the next month and whichever is highest pay towards that. It will likely change over time as you pay the balances down.
Zacc, what percentage of US households have $140k annual income ? Perhaps 10% ? What percentage of your employees who are not a CFP or CPA have household incomes of $140K ? I really do enjoy listening to you, but this video rubbed me the wrong way. Only 10% will be in the top 10%.
Hi Eric, Erik here 🙂 can I ask what rubbed you the wrong way? When talking about a way to get to financial freedom, and being able to have excess capital past needs, emergency funds, and funding retirement, it's pushing into income ranges like that. In some areas of the country (SF, NYC) that's not nearly enough.
Totally get that Eric. We’ve actually had folks get upset that we use too low of examples as well. But to your point, most states don’t have that high of a median household income. So the number in the equation I built is going to be closer to $120k a lot of the time. It is pretty common for people to make $60k/year. Husband and wife making $60k each doesn’t seem too crazy does it? If so, it is worse out there than I thought. This RUclips audience tends to be higher income than average. Also, I think we are saying the same thing…I agree, most people don’t make that kind of money. Then they are surprised they struggle to build financial freedom by budgeting. The whole point is that most people need to focus on their own financial income offense more!
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This is slowly becoming one of my favorite personal finance and retirement channels. So much quality information in one video. Also, love the details!
Thank you so much for spending time with us and saying such nice things!
Wait, why "slowly"? J/k. Super happy it is helpful.
I wish this video had 100k views! Thank you all for providing such amazing quality content for all to see! The natural conversation between Erik and Zacc discussing financial freedom in a no-shame environment is so welcoming on such a sensitive topic! Great job team!
Thank you so much! We wish it did too! ☺️
Spread the word
The exact information and resources I need for building a quality financial situation. I'm a 25 year old young man and trying to set my son and I's life up for sustainable success. This should be understood by every single person before they go out into the world. This knowledge is requisite! Thank you ❤
So glad this was helpful! Thank you so much for watching and starting early!
Letters and numbers make sense to me! People think I’m crazy for my 3hr per day round trip commute to work but it’s a part of my career path and allows me to be disciplined enough to absorb super valuable education like this. Your channel is quickly becoming one of my favorites. I need to go back to the last one about creating a trust as that’s next on my list, but was holding off due to cost.
Thank you so much for tuning in! So glad to hear it is helpful!
Definitely give that one a listen. Jim is fantastic and the reason I love having him and his team as partners is because: 1. They are so good at what they do. 2. They are much less than most of the estate planners I've interacted with, so cost may not be as scary as you may think :)
Thank you for all the information.
Letters and numbers make sense !
Thank you for taking the time to watch!
I greatly appreciate the letters and numbers approach, it helps people understand what needs to be done in sequence vs simultaneously.
I work in business finance and wish more of my clients had seen your content. I plan to share it profusely!
Appreciate you watching (to the end!).
Letters and numbers make sense. Thank you for sharing your knowledge. I'm new at this and have found all your talks, that I have watched so far, very helpful and enlightening. You guys make a great team.
Thank you so much for spending time with us! Zacc is great and I'm grateful he's willing to come chat with me :)
ABC, it's easier than 1, 2, 3. Outstanding. It's great to see Zacc Call again on the Retirement Nerds RUclips channel! You guys rock!! I bought the book today; I will leave an Amazon review.
Thank you David!
@@TheretirementnerdsMy pleasure!
Thanks for buying a book! I’m excited to hear your feedback!
@@zaccarycall My pleasure. Thanks for writing the book!
This is the most helpful episode by far. Thank you both. I always listen to your show.
Thank you so much for your support!
After watching your videos, I recognized the value and felt ready to select an advisor. I tried a website that gave me five firms, but was not comfortable with any of them. I emailed Capita and met with an advisor yesterday. I was a little nervous to meet with someone besides Zacc, because I feel like I’ve already interviewed him and would feel safe with him, but his advisor was fabulous, too. Now I can’t decide if I should buy one book or a book for each of my adult kids. I hope they find it all as easy as ABC, 123. 😊
Thank you so much for this! Zacc is so great to be willing to come on and share his wisdom. He is great. Truly. What I appreciate just as much is the team he has built that is also great - as you experienced 🙂 they are wonderful partners of the channel.
And you made it to the end!
This is so sweet of you. I am happy it was a good experience for you! This feeling an d confidence to move forward is exactly why we do this!!!
I watched the Capita bootcamp tonight and was so excited to see Alison!
@5Brownells she is so great!
Great job!!! Truly enjoy listening and learning from both of you. Letters and numbers
Thank you so much for spending time with us!
ABC123 :) Another great collab! Erik and Zacc are a couple of my Personal Finance favorites. Genuinely great guys that share important info in an easy to digest format. Keep up the great work! I’ll stay on the train.
Thank you so much, Jeff! Appreciate you!
Letters and numbers make sense to me. Love how much information that the two of you always impart. Giving serious consideration about reaching out to Capita as we get ready to retire in the next year!
Appreciate you taking the time to listen to us! :)
Letters and Numbers.... I'm working in project 6 but only have one item in project 4. I'll be getting the rest done very soon. Thank you for all the great information. It's definitely a long vid but very well worth the time. Also should mention, this is the first time I've seen your videos. Great job.
Oh cool! Glad you found us! Yeah this video is kind of a culmination of several concepts we covered over the past year and now applying them 🙂
Congrats on being in project 6!
Project 4 can be relatively quick.
Here is an even more in-depth video on that:
ruclips.net/video/nkFQmsdCW-I/видео.htmlsi=pXCLKkaO9GjofISp
@@Theretirementnerds Thank you. I'll check it out.
@~24:00 Yes! Disability insurance is huge! I used to work in healthcare. So many people think that the worst thing that can happen to them is to die-- it's not.
Agreed! Thank you for watching!
I like the letters and numbers because it recognizes that yes there are clear priorities when it comes to the financials but the 'life' stuff surrounding them has more flexibility. I consume a lot of financial content and you have some of the best out there. This video reminded me with our oldest hitting 18 and our assets significantly changed from when we did our estate plan almost 20 years ago it's time to revisit. Thanks for another great video!
Thank you so much for taking the time to watch and comment!
That was outstanding. Watched the entire thing (yes, the letters snd numbers were a great idea, Zacc). Going to have my 20 something son watch this video. Thanks! These videos with Erik and Zacc are the best planning discussions on the web.
You are too kind! Thank you so much!
Letters and numbers make sense to me! Thank you for such a great podcast! Really enjoyable content and really appreciate all of the advice!! A lot to think about and I look forward to seeing where I am in 5 or so years.
Thank you so much for taking the time to watch!
Letters and numbers make sense! Great tool for people starting out
Thank you so much for watching!!
Gentlemen, another brilliant video. I hope you’ll do more collaborations. The abc (parallel) vs 123 (sequential) made sense to me. My only regret is I’m 70 and just retired 2 months ago so I’m kinda late to the party. Still good advice I can share with my adult children.
Zacc is amazing. Need to figure out how to interview him more 🤔
Amazing video! Thank you for such a detailed explanation of all the 7 projects.
I do like the number & letter system!! Keep up the great job you both do. I love your partnership ❤️
Thank you so much for spending time with us! Zacc is very kind to agree to letting me grill him with questions ☺️
ABC its easier than 123. Liked the scale of letters and numbers. A great key. Plus learned alot, thank you. Planning to buy the book.
Thank you so much for spending time with us... all the way to the end! :) Appreciate you!
This video is incredible - really a one-stop shop for DIY financial planning. I especially appreciate the section about offense vs defense as so many other personal finance frameworks (i.e. Baby Steps, FOO) don't take into account your income and really just make you feel bad about yourself if you're not where you need to be offensively.
I do have a couple questions regarding the portion where you mention determining your income based on the COL in your state:
- Do you have a preferred source for determining this information? I came up with ~$60,000 for Arkansas but that seems high to me, and I'm also not sure if that's per household or if it includes singles, dual incomes, or families?
- How would you adjust for a SAH parent? I would imagine part of the COL includes childcare costs, which would be negated by the SAH parent. Perhaps increase the cost needed per child by a lesser amount?
I understand it's just a back-of-napkin analysis, but it's super helpful to kind of determine if your issues are more income-based or habits/spending-related. I'm 25, married and making $61,000 as the sole income for our household with 1 infant. Certainly explains why things feel so tight - but I'm working on myself a lot. Finished a bachelor's on year ago, a master's 3 months ago, and on track to becoming a CPA within the next year. Hoping that all this investing in myself will get us into a much better offensive position in the near future. Thanks for all the invaluable insights Zacc & Eric!
Letters and numbers work well. Thank you
Thank you so much!
Congratulations on your well-thought-out book. I like how you grouped the to-do list in letters & numbers. I listened to your Social Security interview with Erik, too. You explain things to make it easier to understand. You brought up a matter that I was thinking of doing with my 85-yr old Mom....putting her home in my or my sister's name. From what you said, I won't be doing that. Thanks a bunch! We'll do a trust.
Zacc is so great! Thank you for watching to the end! Have you seen the estate planning video on the channel? Could be super helpful for your mom.
ruclips.net/video/nkFQmsdCW-I/видео.htmlsi=R_rPriMjCnnRAPnr
@@Theretirementnerds I did (another great interview), but I need to watch it again. Thanks!
I’m a Commercial Banker and request Personal Financial Statements (Net Worth Statement) from customers all the time.
If you need a form, contact a local bank (many even have one other their website for free). Then you have a template to start with!
Great tip! Thank you so much!
This was great guys. Appreciate it!
I wish it had a bit more for those who are less inside of a traditional W-2 situation with FSA, HSA, 401(k) plans, but might be more self employed at the lower income spectrum.
The phases work using letters and numbers, but I'm trying to educate family members who don't have jobs with some of these plans.
Anyway, thanks again, and I love listening to you guys!
When is the ebook available?
Unfortunately Capital financial fees are very expensive. It would be great to have an advisor like Zacc.
I'm leaning towards mainly using numbers. Letters sounds like they are subsets 1-a, 2-b.
Thank you!
Question for Zacc - heard you mention on a previous video that your company wouldn’t do a flat fee plan for a client - instead your model is a % of AUM. What about a client close to retirement who doesn’t have many assets outside of a 401K and home equity…..these are not assets you could manage. I’d love advice on upcoming choices such as pension decisions, social security, withdrawal strategy from 401k, etc. Anyway, just curious about this when my assets are sort of tied up at the moment and not in scope for being “managed”. Thanks!!! You are both awesome and I love your videos.
Hi there! Thanks for the message. We are totally open to consultations that don't result in client relationships. I feel that is part of doing good in the world. You might also get good advice from us and decide 5-10 years down the road that it is time to have us help in a deeper manner. So I would say give us a call and we can chat. Also, if there is extensive work on the planning side to do, we can provide a few solutions that would put you in contact with flat fee planning solutions. (XY Planning network, Garrett Planning Network, etc)
I'll be real honest. I was following the letters and number system very astutely at first like a proper student. But then as the conversation flowed into this nice podcast feel, I just kinda zoned out the particular letter or number and just kinda focused on the vibes. Like I could see the infographic and vibe of it being a whole new section and tell from there, that there were subsections. But I can't directly recall the particular letters or anything like that now that I finished the video, even though I feel like I grasped everything and can regurgitate everything to someone else, if that makes sense. Perhaps like static bullet point text on the video that stayed for all the subsections of each "project" would have been more memorable and then like they could vanish for the next project. But perhaps that would just incentivize people skipping around and not necessarily listening to the full discussion, naturally, as it was intended.
As younger individual, I feel pretty stunlocked. I am doing well with the emergency savings and then setting aside some cash for retirement and some small non-retirement investment etc. But my income is not very high. I am not a W2 employee so things like employee stock purchase plans and company matches are not options for me. I also rely a good deal on my health insurance atm and would not want a high deductible plan for an HSA. This feels like it cuts off a lot of the magic of the early project steps for me. So it feels like my primary focus is instead then increasing income in order to even have a family, and assets, and many of the things discussed here. But then I feel concerned about missing out on some of the early planning that could assuage me while I am young and have the time to allocate to setting things ups. When should I even consider a Will, Trust, Net Worth Statement, etc.? I feel like particular documents that might require counsel from lawyers will cost a hefty but worthwhile fee and that I would definitely be willing to put in the work now to handle these things. But my fear is that these things are not built to be modular for lower income individuals. The base fees for lawyers to even breathe on a document will make revisions far more gatekept than for higher income individuals. And so without a home, or kids, etc. it puts me in quite the pickle. Do I pay to have this stuff done now and then pay to have it revised later? Or should I just write out my plans, focus on increasing income and wait a bit more to spend on a Trust and all these things? Especially when Wills can include like sentimental items and Trusts can have such particular instructions, it feels like I would be revising these documents every other year if I don't wait until I am in my later 30s or early 40s, with a home and family etc.
Appreciate you watching and your open feedback!
Trusts really come into play once you own property - think a house. You can do one before then, but the big assets are what you're trying to avoid going to probate with a trust.
A wife and kids really add to the need of making sure you have some sort of estate plan in place.
We both reference our Estate Planning partner - Jim.
This is a video with him: ruclips.net/video/nkFQmsdCW-I/видео.html
To give you an idea of costs - it's a flat fee of $695 for a complete estate plan (Will, Trust, power of attorney, healthcare directive). If you have a home and want them to prepare the deed, it's an additional $250, so less than $1,000 for everything.
There are other services out there that are 100% online without human interaction that can be less, and then if you want a human, it's an hourly fee, so lots of more budget options if needed.
@@Theretirementnerds First, thanks for the prompt and sizable response! That’s very refreshing in this fast paced crunch RUclips environment. It really stands out and I appreciate it greatly!
Wow, that’s really not bad at all on pricing imo. It’s very funny though. I immediately checked your channel to find an answer after this and then watched the entire conversation with Jim😂. So, it’s very funny you mentioned that, it really did answer my exact question at one succinct point in that convo.
You were there, so you obviously know the answer. But for any lurkers who read my comment, felt similar, and then read your answer, basically Jim said a Will and/or Trust is not ALWAYS necessary for everyone as states all have their own preset Wills in place and a “probate” process. But for the VAST MAJORITY of people a crafted Will and/or Revocable Living Trust is a better option. Then they explained how a Revocable Living Trust was their preferred selection for most people over just a Will. But how it actually benefits many people to have both with the Will being supplementary to a Trust and serving to address particulars without, I guess, over complicating the Trust.
They also directed answered my question, they said that you don’t need to stress over a Trust until you have some assets like a home or real estate and if you are unmarried with no children. Perhaps that can be for later. He did stress that a Will can still help in those situations to supercede the state’s Will and that you should still consider Health Directives and Powers of Attorney etc. in case something unfortunate occurs in your life.
The particulars and explanations for all those terms, are purposefully not included by me so you lurkers will still do the right thing and give that video some views and time. ✊🏿
Anyway, I feel a lot better now, thanks. The price of a Will and all really is not bad at all. And I do not think I will setup a Trust until I have property, like you suggest. Then I will put other large assets into it and flesh it out more. I think I am going to just continue saving and investing and give it another year then see where I am. But now I can allocate some savings to the side for an estate plan knowing a rough ballpark. So thanks.
I think I will take the loss on not setting up a Trust at first if a package is offered with that, but setup everything else like a Will and some of the paperwork if I get disabled/injured. And I will let them know, I plan on including a Trust to the equation later above the entire estate plan structure. To make things easier for them in future and hear out some other types of Trusts that might fit me.
Thanks again!
Absolutely loved this video. I feel the level of detail and steps beyond debt pay down and retirement savings in some other videos really sets you apart! ABC vs 123 is not a necessary distinction to make, in my opinion. Where you're being prescriptive to people that want to follow your advice, I think it's fine to just give a one-size-fits-all order to follow so there's no confusion, but I understand why you did it. If you're fielding questions... Should kiddos college savings all go into a 529 account? Any reason to put it some of it in a different type of account?
Thank you so much for watching all the way through!
I'll make sure Zacc sees this and he can answer that question better :)
That is a great question! There are multiple factors that might lead you into one of several account types. A 529 plan has some of the best tax benefits. Along with tax benefits usually come restrictions like needing to use it for education purposes. The other types to consider would be custodial accounts, often called UTMA or UGMA accounts. The major difference is that custodial accounts can be used for whatever purpose (non-education as well) however, this money belongs to the minor. In some states when you reach the age of majority, the assets automatically convert into an individual account in the child’s name. Some people don’t like that worrying that the young adult will spend it frivolously. Another common option, that is often overlooked, is a brokerage account in the parents’ name. The parents know the money is really set aside for their kids’ education, however, the official account owner is the parent for legal and tax purposes. The parents maintain lot more flexibility and control by leaving it in their own name longer. There are no restrictions around how you use funds like that. Little be less tax benefit in this last option. So it boils down to what you will use the money for and how much you are willing to trade off flexibility/control for tax benefits.
@zaccarycall not saying right or wrong... but the brokerage option controlled and owned by us parents is the way we've gone 🙂
This is super helpful, I did not know about custodial accounts and will look into it! Yeah, of course my concern with the 529 is either they choose not to go to college and we eat the penalty or, maybe worse, they feel pressured to go. It feels a bit odd to hedge a bet that they won't want further education... But different strokes for different folks, I suppose! Thank you for the replies & keep being amazing ^_^
@@bensatterfield5278 my pleasure! I’m gonna give you a little pro tip to noodle on with custodial accounts. The benefit of a custodial account is that the income and gains are tax at the minors rate. Given that most minors don’t have much income, this is typically at better rates than parents. Here is the catch… The IRS widened up to this potential of hiding assets in the kids names. So they introduced something called the kiddie tax. Basically everything over a certain threshold tax at the parent rate.
Here is the trick… Every year I make sure to log just enough gains and income on purpose. The kids pay zero tax on it. I don’t go over the threshold where we are taxed at the parent rate. Basically, I’ve never paid taxes on my custodial accounts. That is re-creating all the benefits of a 529… Without the restrictions.
Now the only thing I am up against is the fact that the custodial account will revert to the kids ownership at a certain age.
Great video! Correct me if I’m wrong but i believe you still get a 50% stepped up basis if the deed includes mom / child and mom dies. Opps yes letters and numbers make sense 😊
Great point! It is my understanding that it is a state specific answer! Many legal matters like that are.
@@zaccarycall you point it well taken. Why loose any of the stepped up basis adjustment, over a simple title correction.
Numbers, letters, ... I haven't tried to apply the principles to know if the distinction helps. How do you get this message into high schools? It would need to be tailored a bit, but you've outlined the basic building blocks to a sound financial future. I don't know if having this clear message when I was just starting out in the working world would have changed me, but I'd like to think having this information buried in memory would have made a difference. I've done just fine, but some of that was chance and some, overcompensating on the savings side. If I could give 25 year old me any advice, it would be to make sure I accounted for Projects 1-3 and then allow myself to spend some of any remainder. I simply socked it away, mostly in the bank, but some in a few mutual funds. I am living proof that you can save too much. It's all about balance. Thanks, guys.
Great question! I wish I had this in high school! Thank you so much for watching!
I think without hearing him break it down I would have thought ABC was also done consecutively. Lots of information to chew on.
Thank you so much for spending time with us!
I'm a numbers guy so numbers over letters
Thank you so much for listening to the end!
If i am offered both a 401k and a 457 through my employer, but im not capping my 401k, is there a reason to contribute to the 457 as well? i.e. put maybe 10% into each one? Or just max out one of them?
Love the channel. Small comment both the debt snowball and avalanche methods aren’t actually the most efficient to save money but emotionally most people like them since they’re easy. An example would be Debt A is $10 at 10% interest, Debt B is $50 at 5% interest, Debt C is $100 at 1% interest. Debt B is costing you the most per month even though it’s neither the biggest interest rate nor the largest amount. If youre willing to do the math calculate interest that will accrue on each loan in the next month and whichever is highest pay towards that. It will likely change over time as you pay the balances down.
So Zacc's #7 is buying $MSTR
U have more ads then on tv. Realy hard to concentrate on content.
I don’t see a single ad on here. Great video!
Sorry about that! I don't control the ads RUclips shows or when they show up. I'll see if there is a setting on my end that does control that.
Zacc, what percentage of US households have $140k annual income ? Perhaps 10% ?
What percentage of your employees who are not a CFP or CPA have household incomes of $140K ?
I really do enjoy listening to you, but this video rubbed me the wrong way. Only 10% will be in the top 10%.
Hi Eric, Erik here 🙂 can I ask what rubbed you the wrong way? When talking about a way to get to financial freedom, and being able to have excess capital past needs, emergency funds, and funding retirement, it's pushing into income ranges like that. In some areas of the country (SF, NYC) that's not nearly enough.
Totally get that Eric. We’ve actually had folks get upset that we use too low of examples as well.
But to your point, most states don’t have that high of a median household income. So the number in the equation I built is going to be closer to $120k a lot of the time. It is pretty common for people to make $60k/year. Husband and wife making $60k each doesn’t seem too crazy does it? If so, it is worse out there than I thought. This RUclips audience tends to be higher income than average.
Also, I think we are saying the same thing…I agree, most people don’t make that kind of money. Then they are surprised they struggle to build financial freedom by budgeting. The whole point is that most people need to focus on their own financial income offense more!
@@zaccarycall I think my reply was wiped away. Sorry
Rice & 🫘 ✔️🐶
Thank you! 🙂