Biggest financial mistake I ever made was with my 401k. My company had a Roth 401k when my kids were in college, but I didn't actually start contributing until year 3 of the 6 years I had kids in college. Because I was helping them with expenses, I was entitled to the tax credits, so my effective tax rate was extremely low. That is the time you NEED to be in a roth! i still retired with about $350k in my 401k.
In my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)
I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a crash .
Accurate asset allocation is crucial, I used hedging strategies to allocate part of my portfOlio to defensive assets for market downturns. Expert guidance is vital for achieving this. This approach has helped me stay finan-cially secure for over five years, yielding nearly $1 million in returns on invest-ments.
I'm cautious about giving specific recommendations since everyone's situation varies, but I've worked with "Melissa Elise Robinson" for years and highly recommend her. See if she meets your criteria.
At the very least, I now grasp the concept of leverage. Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.
That is why I work with Margaret Johnson Arndt, who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures. You also get to meet new people, which was the best decision I ever made.
Yeah for real, Margaret Johnson Arndt is one asset manager that gives the breakdown of everything on how things are done, joining an effective financial community can be 100% beneficial when joined properly that's all I can say out of experience..
Excellent video. So I fall into this topic sadly. I have averaged $750K over 25 years as a surgeon. I have lived well, very well, but only have a few million in investments. My tax planning was poor. I should have had all the money distributed with only my budgeted amount available to spend. We were paid pretax dollars and required to make quarterly tax payments as small business owners. This is very challenging since it looks like one has much money to spend. Fortunately we still have close to 10 years working (income around $600K working short week) so we are trying to put more away. My advice is to have the investment (and tax) money removed before you even see it. Set this all up with a money manager/accountant. You will become very wealthy for your older years. Make very sure you enjoy the world. We moved to Denver to play before it's too late. Live well and have a good life.
That's a similar story to my dad's he is a plastic surgeon, but he never invested in anything and often times he thought times were going to be good, until something happened. He always rented, then there was a lawsuit, then Covid and if it weren't enough he owed money to the tax authorities in my country. Fortunatly, he no longer has any large obligations and he still has like 7 years, so he can buy a modest house in a medium class neigborhood, save a little and he will have a pension.
I am a high earner as well, but not as much as you. Moving money before you see it is a great advice. It is only when I started doing this everything came in place
Great video and very good advice. I became financially retired at 54 and now semi retired at 56. No debt period including business. I live below my means and every day is a great day!
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently
The adviser I'm in touch with is LUCY ROSE CARTER. She works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. For me, her strategy works hence my result. She provides entry and exit point for the securities I focus on.
The advice in this video is valuable for the typical American. I started investing when I was 30 back in 1998. Today, I have a decent $3.7M nest egg, thanks to the careful supervision of my CFP. After learning all of this, my only regret is not starting earlier when I was 25. It may not seem like much but those extra 5 years are the most important.
This is why I've entrusted a fiduciary with my investment decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to $780k, generating sufficient dividends for my household's needs.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make decent returns
Before investing, I would highly recommand you to read a few books before. Books like Common stock and uncommom profits and the intelligent investor. They will help you alot
If you are not conversant with the markets, I'd advise you to get some kind of advise or assistance from a financial/investing coach. It might sound basic or generic, but getting in touch with an investment broker was how I was able to outperform the market and raise a profit of $250,000 since Sept. For me, its the most ideal way to jump into the market these days
It's not about making a lot of money, it's all about keeping as much money as possible and investing it. Pay yourself first by saving a decent chunk of your income and then start paying bills. Keep doing it over and over!!
It's not about any of that. It is all about living your life the way that makes you happy. Will not find it in any cirriculum or yt. Been there, spent years on CFA and other crap. Years later I live way better with way lower income.
The first part of this vid is the best! I currently earn a high income and am surrounded by others who do at work. I see a *LOT* of lifestyle inflation and it's based on the idea that the gravy train won't end. Many people are TRAPPED in those jobs due to their debt load. I personally have a small house, small mortgage and try to do more saving than spending. The ultimate luxury is being set enough to say goodbye to work when YOU are ready, not when you're ready to die. ;)
Great Video - keeping lifestyle creep in check is the hardest part of being a top earner because other high earners are in your circle. Your friend just got that big house, boat, new car, etc. while investing to generate cash flow / financial independence takes time (perfectly obtainable by late 40s or early 50s if you have high income with the right focus).
Love how you breakdown of common financial pitfalls! How do you recommend high-income earners strike a balance between enjoying their success and making wise financial decisions for the long term?
Consistently great content, Tae! I've learned so much from your channel. I hope you take this to college campuses soon. Definitely do a Ted Talk on the slow and boring path to wealth!
Thanks for your insights. For many many many people, I would add flood insurance. I lived in an area that had not flooded in 40 years. Hurricane Harvey cost me 200 K in repairs.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Not at all, having monitored edge my portfolio performance which has made a jaw dropping $473k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemingly unknown market. I must say it's the boldest decision I've taken since recently.
@@StellaMaris-lv2uq I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
*Mary Onita Wier* serves as my advisor, bringing extensive qualifications and experience in the financial market. Her deep understanding of portfolio diversity positions her as an industry expert. I suggest delving into her credentials for further insight. With her considerable experience, she offers valuable guidance to anyone seeking to navigate the complexities of the financial market.
I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. One way to minimize the anxiety out of stock market investing, is to make sure you keep a large cash cushion. I invest in the market, but never put all my money in market.
This is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. That is how people are able to make such huge profits in the market.
I’ve copied trades from a licensed wealth manager over the past few years and its better than trading blindly on your own if youre an absolute newbie. It would give you a better understanding of what's happening but keep in mind that the success of copying another trader is dependable on their transparency. That's actually how I was able to raise a profit of $610K in a few months of active sessions.
My advisor is “Lisa Angelique Abel” I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for the helpful tip. it was easy to find your coach. Before scheduling a phone call with her, I made sure to do my due diligence. Her résumé looks impressive, and she appears to be highly proficient in her field.
"Taking Unnecessary Risks" - this is me unfortunately. be it crypto, futures, options trading, real estate (safer but still high risk). thanks for calling this out Tae, it's helpful to have someone really explain it
My learning: no matter how much you earn, understanding fundamental principles like budgeting and simple investments are the foundation of solid financial decisions and long-term security.
To insurance I'd add long-term disability with supplemental disability, paying taxes on the premium. I'd also get an umbrella liability policy. Rich people are targets of lawsuits.
Great video, hopefully internalize a lot of this advice as I get older. We should add a tiny bullet at the end for the older folk that are bad with social media and technology.. "Don't fall for the obvious scam bots posing as 'financial advisors' in the comments section of every financial advice channel."
10:40 That match was a tough one. Thanks for the vid, Tae. I live in Argentina and strong financial education is crucial due to political corruption. I have to deal with significant inflation every month. Maybe that could be a topic for a video :)
0:14: 💰 High-income earners often make financial mistakes despite their income. 5:42: 💰 High-income earners make the mistake of investing heavily in illiquid assets. 2:55: 💼 High income comes at a cost, impacting health, relationships, and happiness. 7:44: 💰 High income earners often make investment mistakes by listening to the wrong advice and overcomplicating their finances. 10:20: 💰 High income earners often neglect to adequately protect themselves with proper insurance, which can lead to financial mistakes and potential bankruptcy. Recap by Tammy AI
I don't know about higher income workers, but lower income workers experience a lot of wage theft, because many jobs do not have a contract. I have zeros for 2002/3 in my SS statement. Ofcourse I was working the two years. I didn't choose not to get a paycheck. Employer chose not to pay. I was too poor to leave that job or not work for a week while I'm looking for a job. There were two more jobs like that, and two that cost me more to go to work than stay home.
With respect to homeowners insurance, here in Florida, it runs $6-8K plus. I own my house free and clear and am choosing to self-insure, whereby, I put that money into SP500. At 8%, in just 20 years, the amount I would have paid into insurance will equal the max the insurance ever can or will pay. First of all, you must own your house completely to opt out of homeowners insurance. Second, the average claim is minimal. Thirdly, fraud and company profits account for the bloated premiums. I take good care of my home to ensure it is all up to code to minimize fire or wind damage. The other insurance items I agree with: Yes, term-life you need until you have several million in the bank and your kids are independent. In terms of health insurance, if you are self-employed and healthy, consider a healthshare. It works like health insurance but is 1/3 the price because they cut out the profits from insurance companies.
Most people ignore the importance of Insurance, especially when it comes to Life Insurance. And having enough insurance to protect you in the event of a lawsuit. For life insurance, I highly recommend Term Life Insurance with Living Benefits in the event that you become seriously ill such as cancer, heart attack, stroke, etc. You can file a claim on your Life Insurance. And you need to make sure that you max out coverage for your auto, home, and carry an umbrella policy.
Dude I just found your channel. Come to do a speech to all the 10,000+ employees at my local county hospital. Its a huge teaching facility of medical students, nurses, residents, and fellows. Most are clueless about how money works and cater to their wants day in and day out.
Going minimal 4 years ago has led to significant spending contraction which allowed increased savings and life experience expansion. We decided it was more important to travel and take classes than own expensive toys.
I started at 25. Made my highest income from work was at 40. Now at 50, my total income is still higher than when i was 40, however the income from work makes up only 60% of my overall income. Comparing work income, i was pulling about 20% more when i was 40 than now at 50. Hoping to retire at 55 with a passive income equivalent to 50% of active work. That would be very comfy as i hv no intention to spend anything more than $200k per year
Wow, I really identify with all of this. I live paycheck to paycheck on $150k salary. I am broke and exhausted. It’s an awful trap I never thought I’d be in.
LOL. Truth. Actually this should really be the top priority. The amount of losses you can incur in making this mistake can be absolutely epic. Depending on the state, you can nearly be completely wiped out. There really isn't a more risky endeavor.
I am all for living live at the fullest. However, it doesnt mean that I am not prepared for the future either. I always make sure to have an emergency fund and steady contribution to retirement funds. After that, I try to pay off my house and still have some left over for lots of fun money. Always make sure to give some away as well.
Thinking gross, not net is also a problem. High earners think “I make half a million a year, I can afford (whatever).” Well, no. Maybe you pay 50% in taxes and 30% for housing, food, transportation, etc. that leaves you with 20% or $100,000, which you have spent several times over because you feel like you deserve whatever you want. Also, you only need to get rich once, then you just need to stay rich. At some point less exposure to the stock market is prudent if you have amassed a very nice net egg, like $8MM or so by retirement age.
What do you think about REITs. From what I understand, you prone a all in one index found. Do you think people should have a % in REITs? (All in one REITs index/ ETF like VRE)
Great insights on the housing market! The shifting dynamics present potential opportunities for those ready to invest. It's evident that the Federal Reserve's policies have far-reaching implications for the housing market, making real estate a journey of long-term investment. Amid these fluctuations, I've ventured into new investment avenues. Thanks to the guidance of a mentor Edward Joseph James, my portfolio has seen significant growth in just 6 weeks. These are indeed turbulent times, but as the saying goes, fortune favors the bold!
Investments should be the best thing anybody can do for themselves, till today my profits in stocks continue to impact my wealth greatly therefore I don't feel any urge to soley depend on my salary.
Good content and advice. The only thing I would rethink is the advice on too much illiquid assets. This seems to undermine the importance of real estate investing, generating passive income and using debt to grow.
You missed one of the biggest and most common mistakes... in fact you advocated the opposite. "Don't invest so much in retirement accounts that you don't have money free to retire early." I know a lot of wealthy people in their late 40s... they have a net worth of 2-3 million bucks, but it's all in 401k's and Roth IRA's so retirement at 50 isn't an option but at 60 they'll have way more than they need. Be sure to create that buffer account to get you from 50 to 62.
@-RU-vidr_channel.. sure. I was a high earner... I hit my 401k match, then maxed my roth, then went for max annual 401k contribution... in my late 30s, I realized that I had screwed up. Even shifting to just enough 401k to get the match, I would have 4 million in my 401k at age 50... but wouldn't have enough in non-retirement accounts to get me from 50 to 60... I got creative and found solutions (for example, using the Roth to pay for the kids' college and playing with the equity in my house) but it's an easy trap to fall into.
I just hit 51, I contributed minimal to 401k but I did invested in real estate. Now home and 3 rentals paid off in the SF Bay Area. Rentals income are cash flowing g like crazy which I get access to rather than 401K or IRA. It worked out well since I bought these properties in the last 20+ years span. Now real estate is just too high to invest in and I put more into 401K to lower my income tax.
@@robertschraedley7097 Thanks for the insight! I can see myself getting into that pitfall without having read your comment. I'm 20 investing 50% of my income as a college student, not including also maxing out my Roth IRA. I never considered planning on *not* maxing out my 401k or anything similar in the future due to how much I prefer to invest over spend. Something I would have never considered, but now duely noted! Real-estate could be a good plan to avoid this, seems that's also what helped you in your case of equity
3:31 This is the biggest reason most pro athletes wind up broke. They only get paid half the year but rack up so much debt they need to be paid all year and when they retire, forget about, it's over.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Monitoring my portfolio closely has been incredibly rewarding. In just the past two quarters, I've made an impressive $273k. It's fascinating to see how experienced traders can generate significant returns. This has definitely been a bold and exciting decision for me.
The adviser I'm in touch with is Camille Alicia Garcia. You can use something else, for me her strategy works hence my result. she provides entry and exit point for the securities I focus on.
