I say be as aggressive as you can be as early as possible... at 25 I thought I'd retire around 65, at 30 I wanted 62, at 40 I wanted 60, in my 50s I want to retire ASAP.
Hi, in my 50’s now and I’d like not to die ASAP. Saving for my pension since 18 and now taking it. Still working and saving 40% to let me retire when my health forces me to. Take care all M.
What’s wrong with saving as much as you can at any age? If you over do it, you can always spend more later. If you don’t save enough, it’s harder to save/work more later in life.
Nothing is wrong but your life might suck when you're older too. If you have bad health, accidents, maybe life a spouse you planned on having through retirement, etc.
A big mistake I wasn't aware of when I was younger and have have a hard time breaking now, is Over Consuming the wrong things. Instead of 4-5 drinks, pair it down to 3. Instead of 3-4 hours of TV, make it 2-3 and spend an hour everyother day reading and sweeping or yard work (alternating). Instead of eating to be full, eat 2/3 thirds or 1/2 of the food you would have ordered while some would go to waste. This adds up to quite a bit.
My nephew and I were having a discussion... Although I think saving a fixed amount is good, given stages of life, saving more when possible is something I suggest to him. Stages, meaning saving for a house, layoffs, kids, etc.
I was absolutely clueless about funding retirement when I was young, never had a pension, and didn’t have a job with a 401(k) until I was nearly 40. Once I had that option, I started investing 15% of my income, so that at 55 I had too little invested and too much debt. I knew I had to change, so I got very frugal and got rid of the debt. I was able to save 50% of my income for about 3 years before I was laid off. My current job doesn’t allow that level of savings, but those three years made a huge difference. It got me to where I need to be for a reasonably comfortable retirement replacing 100% of my income (assuming social security survives) when I’m ready to leave the job.
I'm the same way. I did the bare minimum to get the company match. I didn't start until saving aggressively until age 38. no one talked to me about funding retirement. My family, friends, or coworkers didn't say a word. I was around broke people!
I want to setup my daughter with a Roth IRA as soon as she starts working. I'll match what she puts in it. If she maxes it out every year from 14-24, she should have over 100k in tax free money when she gets out of college. If she keeps maxing that out she would have 6 million tax free by age 60.
You're correct at this point in time I don't live on 100% of my income but in retirement I want to live better than I do now. So I'm shooting to replace 100% if not more
I save 75 percent of my salary max out 403 457 and Roth IRA I’m 53 .I do a small side hustle to live on .plus 25 percent of my salary I live good .should I be doing something else?
Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities.
Choose a reputable financial adviser like *Jenny Pamogas Canaya* for insurance, regardless of the firm. With her dedicated career in financial planning, you'll receive guidance for growth, better navigation, and secure task completion.
25% is the Money Guy "financial mutant" aspirational advice, especially for the younger starting savers who don't need to catch up and are moreso looking to get ahead on that financial independence goal. The best advice, as I see it, is 1) Educate educate educate yourself and then 2) start now with saving something, if its that optimal level of 25'ish% then thats amazing and if less then it's a great start and stay motivated to work towards increasing that over time until you reach that optimal level all the while you're building your nest egg as you do.
We have a specific cost of living we operate within. We have been saving 25% our income is doubling. We will be saving closer to 50-60% maintaining the same standard of living to target 10x our income invested by 50. That works out to 40x our standard of living. We could very comfortably retire at 50. Though we will likely work until our mid 50's.
I’ve done 15% from age 24-60 and didn’t make a million. Lots of other factors like salary and how it was invested. I obviously didn’t invest very well. My value is still more my money I put in than what it made for me. Remember there wasn’t an internet telling me how to do this back in the mid 80s. And you guys where in diapers.
That depends on your age, your debts and amount set away for emergencies among other factors. If you have no other debts other than mortgage and have a good emergency fund built up, you may be able to pay more toward the house AND invest in Roth, etc. There are several factors to consider, so one answer is not adequate for all people.
I agree that daves thing is one size fits all but just wanted to point out that under his system it's 15% until the house is paid off (which obviously may or may not make sense depending on a bunch of variables).
I've been contributing 10% (required) towards my pension since I was 24. I'm 36 now and have opened a 457 and Roth IRA 2 years ago and am saving about 25% now. I'm going to try 25% the next 2 years also and then slow down to 20%.
Good video. Topic for future video; I'd really enjoy a review/ critique/ comparison of the big name robo- investors, showing the pros and cons, and essentially your sales pitch for yourselves as an alternative.
This makes me feel good in a way because I'm saving 35% (6% pretax and 29% Roth) of my gross but I still feel like I'm behind where I should be and the market is not helping matters. As I'm 62, it's getting a little scary. I feel like I may be working until I'm 70! :) I live below my means but I still have a $500.00 per month mortgage so I'm torn as to whether I should take money out of my retirement fund to pay off my condo or whether I should leave my funds in investments and take a mortgage into retirement. When I look at the monthly cost of Medicare and Medigap, it's frightening that I could be spending $500.00 per month just on healthcare. That's a huge hit.
My dad is stuck working full time as he approaches 70. He has a mortgage and could sell his way to big of a house, downsize, be 100% debt free and pocket some cash but he just won't do it. He has sacrificed his entire life for his "dream house". It is insane.
Today yes but the idea is that in the retirement years you will pay less taxes so have a good balance of taxed and pre-tax. do the yearly ROTH amount and at least up to the match in the 401k as that is a 100% return.
I’ve been living below my means for a while. Payed kids college and house is payed for. Still don’t feel like the investing thing is going to plan out for us. I do 16% and the wife has a pension and a maxed out Roth. The Markets are eating away our retirement. I feel I am spinning my wheels. No matter how much we put In it is staying the same or worse.
you guys investing in sp 500 or equivalent? also theres gonna be years when you make 18 to 35% gain and years your down 18%, key is to not sell long term
I look at it like the market is on sale right now. And I think your lake house will be down next year. There is a huge short term rental bubble that I think is going to pop soon.
@@JJJobson We are retired and we are definitely sick of these markets, too. Our balance in retirement funds is almost as low as it was in Mar. of 2020 and it was awful then. It did rebound (finally) after that but who knows if/when it will rebound this time... We aren't really worried, just aggravated that it has taken this dive so soon after the last one. Crazy times.
Saving for retirement is much much easier once you save a large amount early in your 20s through mid 30s or early 40s due to compound interest. You can always take your foot off the gas in your 40s knowing you're on track to retire well.
For the 40 year old, switching to contributing to a Roth isn't necessarily a small (painless) thing for them. They will lose the tax deduction on the contribution, taking home less each pay period. Yes, it may make much more sense long term but, IMO, it's not quite the tiny fix implied here!
You know what noone else has videos on? Age gap retirement planning. How to handle a significant age gap between spouses when planning for retirement and social security. That would be great guys!
Minor comment/correction. I believe Dave Ramsey advocates 15% (employee contribution) and after paying off mortgage to max out retirement savings. You were showing employee contributing 10% and counting employer's 5% match to give you a total of 15%. Enjoyed your video! Good food for thought
I am 55 and started my current job at 38. I have a 401k with a 5% match and a pension. Slowly increased my 401K over the years, and now I am investing 27% of my salary and trying to invest the max into my personal Roth IRA. I am very fortunate to have both the pension and 401K. I figure between my pension and Social Security, I should only need to take out 2% of my portfolio to live comfortably in retirement.
I am 42. My employee puts in 8% and I put in 27% for a total of 35%. I can access this when I am 69. I rather not have this money in my hand because I’d spend it on something useless 😂
@@midwestrustwarrior I’ve never understood the whole not counting the match thing. As long as you are vested you can count the match in my opinion, then if the company decides to not offer a match don’t count it anymore.
IMO people should save 70% of their pay. The issue is state and fed taxes will be going up to pay for all the illegal aliens and all the poor . Inflation will stay high for decades. Lastly there will be no social security in 10 years. Interest Rates will stay high for years and Markets will return less than they have the last 25 years.
DR say save 15% while your still paying off your house ..but once you're debt free house and all Dave then say max all retirement accounts out with the freed up money..
@@Chris-fd4kh when i said save I ment invest..sorry for using the wrong verbiage...the DR plan is pay off all debts ( cc, cars and what not) ...have a 3-6 month emergency fund, invest 15% of income in retirement, pay off house..then max out all retirement accounts ..
Between the HSA, 401K & ESPP, I've been putting away 20%. I also put away more in an IRA, but I don't count that towards my savings percentage. BTW, thank you for the videos you did on infinite banking.
The rich stay by spending like the poor and investing without stopping while the poor stay poor by spending like the yet not investing like the rich. INVEST NOW!
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed more light on some things, but I'm confused, I'm a newbie and I'm open to ideas
VOO Index Fund its a one stop shopping as your investing in 500 company's , has low cost, and it is self correcting as if a company is not doing well they drop out and another takes it place. Then read, listen, and act as you understand things better and what sort of tolerance you have to market ups and downs.
Great info. My wife and I were late starters and Ramsey has truly helped us in the right direction, Yes he does recommend 15% but he also has a method and while he does advise that and to use a good financial adviser that teaches (just as you all are doing here), the overall idea is 15% and focus on paying off the house ASAP then you have more $$ to invest with should you choose. side not. after the hurricane yesterday, I hope you all are safe!
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
I say be as aggressive as you can be as early as possible... at 25 I thought I'd retire around 65, at 30 I wanted 62, at 40 I wanted 60, in my 50s I want to retire ASAP.
Hi, in my 50’s now and I’d like not to die ASAP.
Saving for my pension since 18 and now taking it.
Still working and saving 40% to let me retire when my health forces me to.
Take care all M.
What’s wrong with saving as much as you can at any age? If you over do it, you can always spend more later. If you don’t save enough, it’s harder to save/work more later in life.
I agree. Front load retirement if you can.
Not only that, but if you have children this works out wonderfully as well if you plan to "share" your future wealth with your loved ones.
Nothing wrong with it. Just be sure to live life also. Especially if no kids, less responsibilities, etc.
Nothing is wrong but your life might suck when you're older too. If you have bad health, accidents, maybe life a spouse you planned on having through retirement, etc.
Anova vaccum instructions
I’m trying to retire by 50, so I’m saving 70%. Still have a fulfilling exciting life without wasting money on a nice car, fancy vacations, restaurants
A big mistake I wasn't aware of when I was younger and have have
a hard time breaking now, is Over Consuming the wrong things. Instead of 4-5 drinks, pair it down to 3. Instead of 3-4 hours of TV, make it 2-3 and spend an hour everyother day reading and sweeping or yard work (alternating). Instead of eating to be full, eat 2/3 thirds or 1/2 of the food you would have ordered while some would go to waste. This adds up to quite a bit.
My nephew and I were having a discussion... Although I think saving a fixed amount is good, given stages of life, saving more when possible is something I suggest to him. Stages, meaning saving for a house, layoffs, kids, etc.
Yes, DR has researched it and has data to support his 15% rule. I have heard him discuss how he reached that number.
I was absolutely clueless about funding retirement when I was young, never had a pension, and didn’t have a job with a 401(k) until I was nearly 40. Once I had that option, I started investing 15% of my income, so that at 55 I had too little invested and too much debt. I knew I had to change, so I got very frugal and got rid of the debt. I was able to save 50% of my income for about 3 years before I was laid off. My current job doesn’t allow that level of savings, but those three years made a huge difference. It got me to where I need to be for a reasonably comfortable retirement replacing 100% of my income (assuming social security survives) when I’m ready to leave the job.
I'm the same way. I did the bare minimum to get the company match. I didn't start until saving aggressively until age 38. no one talked to me about funding retirement. My family, friends, or coworkers didn't say a word. I was around broke people!
I do my best to invest roughly 50% every month, some months more, some less, depending on different expenses that come up
I want to setup my daughter with a Roth IRA as soon as she starts working. I'll match what she puts in it. If she maxes it out every year from 14-24, she should have over 100k in tax free money when she gets out of college.
If she keeps maxing that out she would have 6 million tax free by age 60.
You're correct at this point in time I don't live on 100% of my income but in retirement I want to live better than I do now. So I'm shooting to replace 100% if not more
You must be debt free first. Makes a very big difference. My mom does everything she wants making 40k in retirement.
I save 75 percent of my salary max out 403 457 and Roth IRA I’m 53 .I do a small side hustle to live on .plus 25 percent of my salary I live good .should I be doing something else?
I saved/invested 25% of my income for the last 15 years of my working career and on top of that I had a 6/% company match. It worked great for me!
Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities.
Choose a reputable financial adviser like *Jenny Pamogas Canaya* for insurance, regardless of the firm. With her dedicated career in financial planning, you'll receive guidance for growth, better navigation, and secure task completion.
I love ro change the word "retirement" to financial independence. Well, that may introduce too many variables.
Dave Ramsey only says 15% until your house is paid off. then it's as much as you want
25% is the Money Guy "financial mutant" aspirational advice, especially for the younger starting savers who don't need to catch up and are moreso looking to get ahead on that financial independence goal.
The best advice, as I see it, is 1) Educate educate educate yourself and then 2) start now with saving something, if its that optimal level of 25'ish% then thats amazing and if less then it's a great start and stay motivated to work towards increasing that over time until you reach that optimal level all the while you're building your nest egg as you do.
I don't count social security. I have serious doubts that it will be there or a completely new system could be in place in 35 years when I retire.
We have a specific cost of living we operate within. We have been saving 25% our income is doubling. We will be saving closer to 50-60% maintaining the same standard of living to target 10x our income invested by 50. That works out to 40x our standard of living. We could very comfortably retire at 50.
Though we will likely work until our mid 50's.
Save as much as you can, you don’t want to be one of those old people at Walmart or home depot still working
I’ve done 15% from age 24-60 and didn’t make a million. Lots of other factors like salary and how it was invested. I obviously didn’t invest very well. My value is still more my money I put in than what it made for me.
Remember there wasn’t an internet telling me how to do this back in the mid 80s. And you guys where in diapers.
Simple question.. pay off the house or continue to invest on your retirement at 15% on Roth
That depends on your age, your debts and amount set away for emergencies among other factors. If you have no other debts other than mortgage and have a good emergency fund built up, you may be able to pay more toward the house AND invest in Roth, etc. There are several factors to consider, so one answer is not adequate for all people.
I agree that daves thing is one size fits all but just wanted to point out that under his system it's 15% until the house is paid off (which obviously may or may not make sense depending on a bunch of variables).
I like the simplicity of the 15% guideline, but see that for those who are a little behind bumping it up to 20% or more may be necessary.
Sept 23 we slid back into Bear Market? What do those of us near retirement do now?
pray
Keep working
Start building your 3 bucket retirement plan so that you can ride out the market swings over 3 years.
Talk to Jazz and get the money in the right places to max your dough....
Saving and investing is fun! You can never save enough!
Yep..I was that 401k guy!!! Great content!!!
I've been contributing 10% (required) towards my pension since I was 24. I'm 36 now and have opened a 457 and Roth IRA 2 years ago and am saving about 25% now. I'm going to try 25% the next 2 years also and then slow down to 20%.
What’s the rationale for calculating this percentage pretax versus after tax?
Retiring with 10 or more rental properties paid off at 55 to 60 ?
So is the roth vs traditional 401k is the 10% the same dollar amount or are the taxes actually calculated on both ends?
Very helpful video! More like this!
Good video. Topic for future video; I'd really enjoy a review/ critique/ comparison of the big name robo- investors, showing the pros and cons, and essentially your sales pitch for yourselves as an alternative.
I would've loved to see analysis examples without employer match
This format is great. Really enjoyed the vid
This makes me feel good in a way because I'm saving 35% (6% pretax and 29% Roth) of my gross but I still feel like I'm behind where I should be and the market is not helping matters. As I'm 62, it's getting a little scary. I feel like I may be working until I'm 70! :) I live below my means but I still have a $500.00 per month mortgage so I'm torn as to whether I should take money out of my retirement fund to pay off my condo or whether I should leave my funds in investments and take a mortgage into retirement. When I look at the monthly cost of Medicare and Medigap, it's frightening that I could be spending $500.00 per month just on healthcare. That's a huge hit.
I’m right there with you
My dad is stuck working full time as he approaches 70. He has a mortgage and could sell his way to big of a house, downsize, be 100% debt free and pocket some cash but he just won't do it. He has sacrificed his entire life for his "dream house". It is insane.
Doesn't 10% Roth cost more than 10% pre-tax? You'd have to pay the taxes then contribute 10% for the roth.
Today yes but the idea is that in the retirement years you will pay less taxes so have a good balance of taxed and pre-tax. do the yearly ROTH amount and at least up to the match in the 401k as that is a 100% return.
Thanks guys! Learned a lot.
I’ve been living below my means for a while. Payed kids college and house is payed for. Still don’t feel like the investing thing is going to plan out for us. I do 16% and the wife has a pension and a maxed out Roth. The Markets are eating away our retirement. I feel I am spinning my wheels. No matter how much we put In it is staying the same or worse.
you guys investing in sp 500 or equivalent? also theres gonna be years when you make 18 to 35% gain and years your down 18%, key is to not sell long term
I look at it like the market is on sale right now. And I think your lake house will be down next year. There is a huge short term rental bubble that I think is going to pop soon.
@@JJJobson We are retired and we are definitely sick of these markets, too. Our balance in retirement funds is almost as low as it was in Mar. of 2020 and it was awful then. It did rebound (finally) after that but who knows if/when it will rebound this time... We aren't really worried, just aggravated that it has taken this dive so soon after the last one. Crazy times.
@@peterhoffman8525 sorry to hear that. I’m about down to a 2% ROI over the last 5 years now. Just getting chewed up and spit out.
everything is on sale. Your buying more shares for the same money and when it pops you will see large gains. hold the course and hold on for the ride.
Age / 2 = what to save
Saving for retirement is much much easier once you save a large amount early in your 20s through mid 30s or early 40s due to compound interest. You can always take your foot off the gas in your 40s knowing you're on track to retire well.
For the 40 year old, switching to contributing to a Roth isn't necessarily a small (painless) thing for them. They will lose the tax deduction on the contribution, taking home less each pay period. Yes, it may make much more sense long term but, IMO, it's not quite the tiny fix implied here!
You know what noone else has videos on? Age gap retirement planning. How to handle a significant age gap between spouses when planning for retirement and social security. That would be great guys!
That would be really helpful
Chart on! 📈📊 Whoops wrong channel! 😅 Nice research and info Eric and Dustin!
Thanks Dustin and Eric great way to break it down.
Minor comment/correction. I believe Dave Ramsey advocates 15% (employee contribution) and after paying off mortgage to max out retirement savings. You were showing employee contributing 10% and counting employer's 5% match to give you a total of 15%. Enjoyed your video! Good food for thought
I am 55 and started my current job at 38. I have a 401k with a 5% match and a pension. Slowly increased my 401K over the years, and now I am investing 27% of my salary and trying to invest the max into my personal Roth IRA. I am very fortunate to have both the pension and 401K. I figure between my pension and Social Security, I should only need to take out 2% of my portfolio to live comfortably in retirement.
Another option for your retirement portfolio is to have it more focused on dividends so you don’t have to touch the principal
I am 42. My employee puts in 8% and I put in 27% for a total of 35%. I can access this when I am 69. I rather not have this money in my hand because I’d spend it on something useless 😂
69? Seems pretty late in life to access it. Pensions usually start at 65.
@@hsingholee1058 Exactly! For the younger generation, it is expected to be 70!or even higher.
Keep in mind when Dave says 15% he’s assuming at 12% rate of return.
And says not to count the match.
@@midwestrustwarrior I’ve never understood the whole not counting the match thing. As long as you are vested you can count the match in my opinion, then if the company decides to not offer a match don’t count it anymore.
What do you think about Ray Dalio's "All Weather" portfolio?
IMO people should save 70% of their pay. The issue is state and fed taxes will be going up to pay for all the illegal aliens and all the poor . Inflation will stay high for decades. Lastly there will be no social security in 10 years. Interest Rates will stay high for years and Markets will return less than they have the last 25 years.
DR say save 15% while your still paying off your house ..but once you're debt free house and all Dave then say max all retirement accounts out with the freed up money..
@@Chris-fd4kh when i said save I ment invest..sorry for using the wrong verbiage...the DR plan is pay off all debts ( cc, cars and what not) ...have a 3-6 month emergency fund, invest 15% of income in retirement, pay off house..then max out all retirement accounts ..
Lol these guys think Dave Ramsey have no reason why 15% work for all?!!😅😢
I want to live, or else it will get rewound...again.
Between the HSA, 401K & ESPP, I've been putting away 20%. I also put away more in an IRA, but I don't count that towards my savings percentage. BTW, thank you for the videos you did on infinite banking.
The rich stay by spending like the poor and investing without stopping while the poor stay poor by spending like the yet not investing like the rich. INVEST NOW!
I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k. Somehow this video has helped shed more light on some things, but I'm confused, I'm a newbie and I'm open to ideas
@Oscar Douglas HOW? I would appreciate if you show me how to do that, I'm interested.
If your car payment is higher than your investment amount your all wrong..
VOO Index Fund its a one stop shopping as your investing in 500 company's , has low cost, and it is self correcting as if a company is not doing well they drop out and another takes it place. Then read, listen, and act as you understand things better and what sort of tolerance you have to market ups and downs.
Great info. My wife and I were late starters and Ramsey has truly helped us in the right direction, Yes he does recommend 15% but he also has a method and while he does advise that and to use a good financial adviser that teaches (just as you all are doing here), the overall idea is 15% and focus on paying off the house ASAP then you have more $$ to invest with should you choose. side not. after the hurricane yesterday, I hope you all are safe!