I have two pensions. I would much rather have had a Roth 401k throughout my working lifetime. $500/month invested from 25 - 65 at 9% is $2.3mil. I have $100k that i like to invest in a non-retirement account, Where would you invest this as of now?
I would avoid the index funds or specific stocks cos 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows signs of recovery or better still consult with a market expert for guidance.
I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Also speaking with an advisor can help with pointers. I've been in contact with one I reached through commentaries here, she has been really helpful.
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.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
I too am a school counselor, no debt, $65k salary in educatoin, and will never afford a home. Haley's question @1:10:17 hits too hard. What I got from Bo's reaction is that there's not really much hope. I don't feel like I want a house because of cultural pressure, but because a)rent is like throwing away money I'll never see, and b) I want to actually belong somewhere. I move every other year because rent keeps going up and salary stays the same.
It's really horrible that those who want a home cannot afford one. I'm not sure if I'll ever be able to own either, but I'm not even sure I'd want to. There is so much work and responsibility with owning a home (plus even the insurance and taxes have become unaffordable for some current owners), but I also want to be in control of what happens with my home. I hope you can someday get your own home.
This is the wrong mentality. Owning a home is location dependent, some places it makes sense others it doesn’t. If it matters that much to you, you will need to move to a location that it works. 65k salary is reasonable to own a home in some areas but at this salary it usually makes more sense to wait until you are married. If you are single take advantage of renting with roommates.
Rent isn't exactly "throwing away money". - In addition to my mortgage and utility bills, I just shelled out $3k for gutters. Soon, I'll be shelling out another $3k for entry doors. - So, owning a home isn't exactly a pure win. There are plenty of good resources on this question: rent vs. own. There are benefits to each and depending on your location / situation, renting may make more sense. - However, renting may never provide your "B".
@@miked412 I said like because it's a comparison, I know it's not exact. I say the comparison because every month I shell out $2k to my landlord for temporary stay in a studio apartment and never get it back. Mortgage can be akin to an investment where at least you gain equity in the place you live.
@@sticknotfire Don't forget that homeowners pay property taxes + yearly maintenance + interest on home loans + (maybe) HOA fees as well. And most do not see any equity in their homes until they are 5-10 years into homeownership. Additionally, the average home equity growth is at 5.4% (data from Mar 1992-Jun 2023), while the average growth rate of the S&P500 is around 10.26% (since 1957) --- 7% to account for yearly 3% inflation. So let's do the math, and here's our variables: 1. You and some guy Joey make the same (65k) 2. You rent for 2k, he pays a mortgage of 2k. 3. Your rent increases 2.5% on average, so over 30 years it's an average increase of $6/month ($75/year). 4. Joey has a 375k loan at 5% that he'll pay over 30 years + he owes 1% property taxes every year ($3750/year) + an extra 25% ($500/month) on phantom costs like home maintenance/repairs. So really, he actually pays $2000 + $312 + $500 = $2,812 every month. Over 30 years, Joey would have paid $349,709 in interest and $292,320 in phantom costs. Let's say his house gains equity on year 7 (the average). So from year 7 to 30 at let's just say 6% growth rate, he gains $234,067.54 in home equity. If he sold his house, he gets 375k + 234k = 609k --- but this gain does not even subtract the phantom costs or the interest he has paid to own this home which in the end would amount to a negative number. On the flip side, now because you're renting and do not have phantom costs related to home ownership, let's say you invested that phantom cost value of $812 minus $6 to account for rent increase every month. At the end of 30 years of investing $806, you would have $984,108. You can literally buy out a home in cash and still have more money than Joey. Obviously I'm doing a lot of rough estimates that are based on historical data we know of. But I think math and perspective is key here. Oftentimes, home ownership especially if the home is your primary residence, is not about the money and surely not about "throwing away rent money." People need to have a better reason than "I'm throwing away rent money" to justify buying a home. Unless you're investing in multiple real estate and your rentees pay your entire mortgage + phantom costs or you get lucky (most people don't) and you manage to sell it at an inflated price, you are most likely not making any real money as an investment from a primary residence.
I’m 60 and want to retire in 6 months. I have a $170K annuity, plus a 401k depleted to $200K of money that I’m not sure what I can do with at this point. My retirement plans seem to be out the window. Is it a good idea to get professional help?
With everything going on, consider a financial planner, … that is okay. You can get your money to work for you. but I would say delay retirement a little
And what if that is all you have, even with SS you may not have enough to retire with. If you opt to work with a financial adviser, you make sure they are certified from AARP or FINRA.
The decision on when to pick an advisor is a very personal one. I take guidance from ‘ Monica Mary Strigle ‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
I think they missed on Marco's question at 54:00. Marco said he wants to pay off a higher balance, lower interest debt first which goes against both the snowball and avalanche methods. Without any other context it makes not sense to me why he'd want to do that. It doesn't make sense mathematically and it's not a quick win either.
Exactly, they have the opportunity to do both avalanche and snowball on the high interest / low balance debt, it's such a no brainer but Bo went into autopilot mode 😆
You could invest in stocks, start a side business, or focus on advancing your career. It's important to set goals and make a plan. Remember, wealth can mean different things to different people, One thing i can say that helped me in life to reach my first million was starting early, i got curious and informed i became open to passive income, investments in equities , etfs and the likes. also sought help to handle my portfolio which was my foundation. i'm ever grateful to Anna Rounds Fay my FA.
I would love to see a conversation about these things framed for a married couple where one had been the stay at home parent. I dont feel like calculating off my husband alone is wise as 2 of us will be living off of his finances but its also not as simple as divide by 2 because we can save a lot by sharing and workinh together.
I feel like I'm in the messy middle early. I'm 27 with a 1.5yo and a 1 month old. We just moved across the state for a decent salary increase (48k a year income). When we close on selling our old condo on April 17 we'll have all debts cleared and 10k in our pockets. But we're renting and our investments are a joke (3200). Hoping that Ramsey 15% will work at least until we can get in a house without PMI.
I don't own a home (yet), but learned last year how much (or rather little) PMI can actually affect cost of homeownership. Also, while DR recommends having 20% if possible, his common standard for his listeners is that of 10%. Any less may not leave you with enough equity, he says. Also, great job for being young, already owning a home, and increasing your income. I hope you achieve your goals.
@@mina7versace Thank you. The condo was mostly my wife being lucky. She bought in 2018 with a first time buyers grant in an expanding suburb so we've had about 40% appreciation. It was definitely as Brian says "sometimes it's better to be lucky than good".
😠 😡 I literally came to the comment section to write this as I caught it, timestamp and all, but I saw your comment being at the top of the comment section...lol 😂😂😂
54:27 I did this with a penny stock. Bought $100 @ $.0001/share. Watched it go up to $0.10 and thought it would keep going all the way to $1.00. the company decided to dilute and cash in on gains and I watched it tank to 0.018. Math simple: 100 investment could have resulted in 100,000. Greed left with 18k not 100k.
A saying I love about individual stock returns, "If it's good enough to screenshot, it's good enough to take gains". If you would brag to a friend about your Nvidia, Apple, or btc position it's time to take some gains.
Ooph that hits home lol I have screenshots of stuff at much better percentages than they currently sit. The only comfort is I knew it was going to drop and I planned to hold for years but it's definitely a good guide lol
Content idea: can yall talk more about the landing phase of the last 5, maybe 10 years before retirement and what kinds of things we should be thinking about? Especially with regard to strategies for dealing with SORR, plus modifiers for FIRE people?
Pay raise question @31:00 we perfect my wife just got a 4% raise since we are still working towards our 25% we just put the entire thing into automatic savings.
I have a topic suggestion: Insurance and things like when is it worth getting new roof to save on house insurance. have been looking into saving money on insurance since my net worth and assets are at a point where i don't really need lower deductibles so maybe a chat on how do i navigate house insurance and car insurance and any other forms of deductibles you cover in that FOO step. for instance, i bumped my health insurance to bigger out of pocket max and what not because i have a decent chunk of money in my HSA and my family is very healthy. ideally that savings now helps me save more toward things like roof or retirement.
As one whose income basically doubled in the last 6.5 years (Comp Sci grad 2017, no internship experience to start, proved myself very hard at a job that recognizes talent and hard work) It is good to keep in mind the caveat that a quickly rising income can raise the goalpost faster than you can save to it sometimes. Be proud of what you're accomplishing, and continue to faithfully increase your saving/investing habits with your income.
According to tool, im perfectly average. Not prodigious but considering i started with a negative net worth at 29. now at 36, Im in the middle or above average. A few more years, and i should be prodigious
Is there any research anywhere on the effect of increased available cashflow from snowball on debt payoff success? I always hear the arguments for snowball being purely behavioral, but it feels like for at least some subset of people, increasing available cashflow might have a serious mathematical benefit rather than just a behavioral "take the win" benefit. At least until you have "enough" cashflow to safely switch to avalanche. Obviously the purely optimal path would still be avalanche with no emergencies along the way, but...
I currently put 10% of my income into my 401K and my employer matches 2%. I am scared to reduce my contribution to this to truly follow the FOO and build emergency reserves. Have any others backed down their contributions to follow the FOO perfectly?
Is 10 percent required to get the 2 percent? Then I wouldn't drop it. I door dashed for a year to build my emergency fun personally. Just a few nights a week just a few hours after work. If you have the ability to get a side hustle like that it helps.
Regarding the student loans.. I owe about 40k. I make 126k (not including employee stock purchase)… on the SAVE plan. Should I look to pay off the loan asap? Or should I pay the minimum for the 20 years then it becomes forgiven?
Only saying what I would do in your position. If I were under 35, I would pay it off. My income would be more than triple the balance and I wouldn't even be in my peak earning years. Also, there are a thousand better things to do over the next 20 years of my life than worry about renewing my IBR or a future administration over complicating my student loan through bad policy or my servicer changing and "losing" documentation.
Screw 20 years I'm paying it off asap I don't trust the Republicans to not do away with it. Not trying to be political that party just keeps talking about taking away those programs.
Yeah don't count on inheritance some of those boomers and silent generation folks are fairly long lived. My dad is 92 and FIL is 85 and both still travel some.
I don’t even understand how to get there lmfao 😢 I’m out of debt 36k+ almost got a years worth of EF. But I can’t even imagine how to save that much. It would take years for me to save just my 1 year Salary
In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start.Any tips on finding a reliable financial adviser or resource to guide beginners?
I agree, based on personal experience working with an investment advisor, I currently have $650k in a well diversified portfolio, that has experienced exponential growth. It is not about having money to invest in stocks,but also you need to be knowledgeable, persistent,and have strong hands to back it up.
How can I participate in this?I sincerely aspire to establish a secure financial future and am eager to participate.who is the driving force behind your success?.
I'm using a strategic Counselor Marie Ann Treloar as a licensed Fin. adviser she's good at what she does. You can actually browse about her for detailed info.
You should educate yourself more on Bitcoin Bo. It’s going to come up more and more in the coming years. You should be educating yourself on it, because it’s very relevant to your job. You’re speaking about something that you don’t fundamentally know much about.
first questions does an employee stock purchase plan count towards my 25% even if it is 15% of my gross income? that plus company match is 21% of my income so I feel that my shovel for paying off debt is small at 4% of my income. second question I am qualified to get a VA loan so I plan on using that to buy a home once I pay off my student loan and have a good emergency fund. Any loan I get will be above 5% interest rate. So once I have bought my home does that mean I am in step 3 again and need to continue to stay there until I pay off the house in 15 years? third question is it ok to sell my ESP immediately every 6 months to pay off high interest debt? details below: I am a 31 years old with a 5.75% graduate student plus loan that is 30k. after getting my employer match and my employee stock purchase that is 21% of my gross income. every 6 months they match that 15% of my gross income with company stock. I get control of that stock every october and march and plan on selling it immediately and putting that cash minus gains tax into my student loan as it is a high interest loan at 5% in my 30s. I have no car payment or credit cards and step 1 is complete. Income is 115k plus a part time job of 20k a year but I am taxed close to 33% of my income so after 25% of my gross and taxes and rent I have about 15% of my income left which is about 1400 a month for just life and most of that is food.
