@joelmartinez2278 , I don't think she is the problem... I think he is. It sounds like he's probably been investing HARD their entire marriage but not respecting her desire to live a little. They pull in $10k a month in social security and pensions, and have close to 3.5 million between the 2 investment accounts. They shouldn't have any debt if he was doing it right. I have a feeling he is STILL trying to save money to invest. That $3.5 million should be making 150k minimum at less than 5% returns if it was in a ultra conservative treasury based security fund or as much as $600k+ if it was invested in good growth mutual funds. Heck, some made over 30% the last couple years in a row. Some average 18% over the last 15 years. He needs to loosen up. Pay off the debt over 2 or 3 years.
Hah! Once he said 3 mil I'm thinking uhhh, so pay the stuff off and let your investments keep growing. Some more frugality doesn't hurt but this doesn't seem very dire.
The problem is their spending is completely out of control (way more than their 9k income), and their debt number is growing way faster than their investment number. They added 230k to their mortgage because of excessive spending. They are also tricking themselves into thinking they have $3 million in investments. Those investments are now down to 2.6 million in a short period of time (because they are offset by debt). When you carry debt instead of paying cash, it gives you a false sense of where you are financially. If you pay cash, then you know exactly what you have left, and how fast you are spending. I agree they have the resources to set everything straight, and live a good life. But if they continue to blow through money and add to their mortgage or possibly credit card debt, they will blow through the 2.6 million way before the end of their lives. Just because you have a big income and investments doesn't mean you don't need to follow a budget.
They have to address the core issue though. Otherwise, they can pay off the current debts but be right back in the same situation, and with a smaller savings amount to tap into.
They have certainly figured out how to save. They have accumulated $3 million in retirement accounts over 37 years of marriage! So obviously they have been living within their means even with his wife’s extravagant spending,
@@tracybrovan3997 there’s so many luxury cars everywhere now that there’s nothing even special about them anymore. Your standard Nissan or Honda has as many features as the luxury brands these days.
@@reese85it’s very true. Mostly all brands have features that would be consider luxury 10 years ago as standard. Like rear view cameras, active lane assist, HUD displays, navigation etc.
@@danayarbrough1494most of them are broke and lie about what they have. They put on a front for everyone…. From my experience dealing with them anyways.
@db2631 , George and Ken COMPLETELY botched this one. These folks got between $270k and $600k in annual retirement income depending on how there over 3 million is invested. I think the husband is over saving. I bet he is still trying to save a portion of their pension money... They should just wipe out the debt and try to figure out how to spend 10k in pension money every month.
@@JustinCase780 why what? They are not on the same page. They need to be to have a good marriage. Otherwise there will be tension, stress, anger, pouting etc. Not good
yeah. I don't get it either. they fed into his emotion and ignored the numbers he was giving them. The husband is the problem. I bet he was over saving during their entire marrage. now they got this enormous retirement because of it. that's great, but he still thinks they have to be careful. if that 3 million was invested in the safest possible investment based on the federal funds rate they would be making 150k a year on it. if it was invested in mutual fund... he probably made 600k this last year. Their budget talk should consist of.. "hey sweetheart. we have $20k to spend over the next 2 months.. you want to go to Tahiti? or Italy? or on a cruise or something? I know too many people who dropped dead 2-3 years after retiring, or lost their minds to Alzheimer's or Dementia. They need to be living.
My parents are retired, they own their home free and clear. No bills too. My dad will be 80 in a couple of years and people we know at his age are struggling with debt, some raising their adult children and grandchildren. The kind of retirement my parents are living is what my siblings and I are striving for.
@@cassnate6259 just goes to show money doesn’t solve problems for people. Doesn’t matter how much money you have, if you have no discipline, it won’t last long.
$5000 per month from a pension and both of them getting $2000+ each a month from SS? They make a six figure income without even tapping the retirement accounts. What's the issue here lol
100%, I am frugal and try to save and invest everything but if I am lucky enough to have $3 mil and all of that guaranteed income at 65 I am living it up.
I agree, they don't have a money problem. I did a $62K truck loan at 0% for 36 months and the monthly was $1,800ish, not a big deal as I was making lots of money. Perspective people. Funny, I traded that 2019 truck (paid off) this past year for a 2023 truck and got a $59K trade-in value. I was shocked I got that much. As a data point it was a 2019 Chevy High Country 3500HD D'Max with 14,000 miles.
Thank god my wife has never been like this. I have to force the issue of her going and buying something for herself. Even when she earns or gets extra money , if she splurges it she alway does something for the family . We are always telling her , do something for yourself. But she says she gets more joy sharing with others . That is why me and my sons spoiler her as much as we can .. she is a treasure. 36 yrs coming up soon.
In upstate South Carolina, my wife and used to manage miserly on about $65k/year. We drove paid-off older vehicles, our 3-bed, 2-bath house cost $145k, we lived frugally and avoided major subscriptions. But thanks to Mary Callahan Erdoes, our financial advisor, the older we get the more money we seem to have, the more I appreciate the benefit of professional guidance. Strategies for handling retirement investment meltdowns are complex, and Mary has been crucial in helping us navigate them and increase our income.
I know this FA, Mary Callahan Erdoes Services but only by her reputation at JP Morgan; even though she's now involved in managing portfolios and providing investmnt guidance to clients. I have been trying to get in contact since I watched her interview on WSJ last month
@@KimJimCastroWell her name is 'MARY CALLAHAN ERDOES SERVICES'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Mary Callahan Erdoes. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, she was able to scale this quickly to $150,000.
Great share! Out of curiosity, I searched Mary Callahan Erdoes Services online, found her consulting page ranked at the top, and scheduled a call session. I've read many reviews about advisors, but none seem as impressive as hers.
>3 million in retirement and receiving $11,000 a month. They are fine and can spend as they chose. It's just stupid to pay so much for a car per month but if she wants to, she can. She's pulling in $7000 a month still while in retirement. Let her live.
Plenty of people and celebrities have substantial income and wind up in bankruptcy. Borrowing money is the best way to destroy finances long term. It's foolish and immature as well.
If they pay off their debt they’re still worth $2.5 million with an $130K/yr income stream. They should be fine IF the wife is not further out of control. That’s a big if though, given how they’re tapping a HELOC.
That could be a good strategy for some people, but in reality most people our age are going to be working until they are 80. Just look at Hugh Jackman, he’s going to be playing Wolverine until he’s 90. If he can’t retire, what hope do we have?
I'm 32 and my wife is 30, She drives a paid off modest 2016 toyota corolla, she earns 200k a year. And she always shows me her new bags, dressers, glasses and makes me guess how much they cost.. They always cost less then $15.. She doesn't spend money on anything, she is the best
Lucky you, thankfully my wife makes $175k but lets me make the big financial decisions and likes to buy frivolous crap still. Amazing she can make amazing money but then tells me the other day that taking out a $100k loan to remodel our house at 7% interest is cheap because it would only cost us $7,000 in interest.....
@@djpuplex i mean it's justified. You can't not say anything or agree when your spouse makes a decsion then turn around after the fact like and blame the spouse for the decision. Have some back bone before hand explain your side then when things blow up you can be 100% not at fault of the spouse decides to do it anyways and it backfires.
@@whothou He probably has very little say like most men. Modern women hold divorce or martial discontent over a husbands head of he just doesn't go ahead with what she wants. Its essentially financial and emotional abuse.
You’re right, the silence told the story. Sounds like she’s been the head bread winner in the house for years and still is. She doesn’t see him as a leader, thats the root issue.
they bring in $4500 in social security, another $5k in pension and have a $3M retirement nest egg on top of it. He has zero reason to be stressed about the range rover payments other than that he should just pay it off and be out of debt.
My wife buys clothes at very low clearance prices, or at Goodwill. She hates spending money she doesn't need to spend. Her car is eight years old and she said it's perfectly fine for her.
@@jimmymcgill6778 Eventually they won't have 3 million if she continues to spend like she does. 3 million nowadays is not a lot of money to piss away like it was in the old days when everything was much cheaper. You can live very comfortably during retirement with 3 mil if you are 100% debt free, but not lavishly. If they live old enough, they won't have a dime to their name if they keep spending like this.
@@jimmymcgill6778 They'll need every penny of it with their mortgage, car payments and lifestyle in retirement. He'll have to start working part time again.
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Brian Humphery Services was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Brian.
Guys you've got to adopt Dave's approach of cutting through the noise and getting to the point. Don't let the caller wander through the forest. Don't let him tell you his life story. Ask pointed questions, get to the root of the problem, give decisive advice, mute button.
The issue here is they're spending more than they're making. The wife is slowly but gradually bleeding out their $3 million fund. They're both still in a great position to do something about it. For now.
you didn't listen bro she's stubborn and he just go along with it because he want to keep her and she doesnt care about solving the problem or going to therapy like a Gold digger
Bro, their income is 10k. They don’t have ti go work. They gotta just pay it all off. AND they have 3mil invested. They are ok, IF they stop getting into debt.
@@greggpurviance7252 $1300 payment is not going to kill these people with 3M invested. Cash out some money, pay off the damn house and car - enjoy and then live modestly. These people giving advice to go back to work is such a joke!
@@PInk77W1, they have 120k a year in pension/ SS income. AND over $3 million in retirement that should be making $150k-300k a year in returns. They could light a land rover on fire every year and it wouldn't matter. They would still be fine. The husband has a saving problem. I bet they were saving at least 50% of their income and he just can't let loose to start spending. They should have no debt. and wouldn't if he was actually managing the money reasonably. They should be trying to spend all of their pension money every month. taking trips, giving to charity, etc.
I know this arrogance well: “I worked, I earned it, I will spend it as I please.” Saw my mother do it for decades. She didn’t feel she needed to save because she gets a nice pension-but 30 years on, she’s feeling the pinch of inflation.
@@chadhartsees yah, "you'll have to go back to work." With 10,000 a month income and 3 million. Yes, they need to be on the same page, be intentional & responsible. The car (SUV) is nothing with the stated income & net worth. Listen!
This scenario is similar to what I went through with a husband who spent money like water through his fingers. We were younger, not retired. We were military, I saved up when he deployed, he spent it when he got back. After he did this the first time, I told him to never do that again. The savings were not just his military pay. Putting my skills to work while still being at home without 4 children, I made custom wedding dresses, taught sewing classes in our home, taught one on one as well as groups in intricate needlework techniques. I put my income in our savings. The second time he came back from a 7-month deployment, decimated our savings. I waited until he deployed again. In a different bank, in an account in only my name, I started a savings account. When hubbs returned from deployment, he was shocked to find $20. in the savings which told me that he checked the savings acct as he was ready to go on another spending spree. He was LIVID with rage. Our savings account continued to grow. Lee in Houston, TX was such a fool. He allowed the problem to go on for far too long. He was absolutely complicit in the problem. The hubbs rage boiled over one night, he beat me just once, that was all it took for me to leave then divorce him. Since then, I have loved managing my own money. Investing, seeing it grow. Loving my freedom.
Terrible analysis by them. They could take out 500k out of the 3 million retirement and pay everything off easily. Then you have 2.5 million on top of the $9500 a month from SS and the pension. 5% on the 2.5 million gives you another 10k a month and never touch the principal. If they cant live on 20k a month after that with no debt then what is there to even talk abiur
They are INCREDIBLY wealthy. The man just wants to control the women. But the women has her own 5k pension a month which is incredible and if she wants a nice car in her last 20-30 years on earth, she deserves it!
So if your wife comes to you one day and say "honey I been messing up with finances and I want us to start working together and join finances" and she has accumulated debt $3k, $5k, $8k, would you use your money/savings to pay it off for her? Dave constantly tells spouse to do this after they refused to combine and work with their partner on finances
Why would you have payments on anything when you're taking in close to $10,000 a month and have $3,000,000.00 in retirement accounts? Pay off the consumer debts and then sell the house. After that, buy a smaller house with cash.
@@reese85"decent money" is completely subjective, as Dave says there are people earning 300k per year who are drowning and people who are earning 60k making a very good life for themselves
@elliotjessop4624 the money you make and being in debt are two completely different things but I do agree that “decent money”is subjective! Cuz a lot of you guys in these comments think 100k is a lot of money and to me, it’s just decent. But I was asking do they at least make 50k a yr cuz a $150 car payment shouldn’t be stressing anyone out
I have similar net worth (just above $3 m). I felt guilty buying a new Tesla for $44k but I paid cash so no payments or regrets. I love it and could afford it.
When you have $120k in pension income and over 3 million in retirement it doesn't matter. He should have handed her the cash to buy it. ;-) Based on the market and how much they have invested I bet they made over $500k in their investments this last year. if he had his money out of the market and in say a federal funds rate based fund he still would have made $150k. This is one of those situations where Dave tells people if you light the money on fire will it make a difference? Nope. they are still killing it.
Pay off the house with part of the 3 million. Let her have her car......she's paying with her $5,000 pension. Do we really think they will live til 95? When are they going to enjoy the money they've worked so hard for? I mean, of course, some money needs to be guarded, but not all of it. Jeez!
George and Ken got it all wrong. If the wife wants to have a $1300/mo Range Rover SHE'S got to go out and get a job. It's not his car, he shouldn't have to pay for it.
You’re good bro. Dave says you can take 12% of your net worth in distributions and never run out of money….Dave doesn’t believe in Sequence of Return Risk
There are some politicians who want to make social security need based. So one or both of them may not qualify, since she is drawing on a pension. Isn’t it a little silly that Bill Gates is probably drawing social security?
If I’m paying for social security all my life and then not getting that? I would be absolutely pissed!! While just because YOU chose to live a little bit poorer and chose a lower paying job, you get to have all the benefits?? That’s bs
Doubt it. Also less wear and tear for any type of car when retired. I retired at 49 in 2020 and one of the first things I noticed is annual mileage dropping over 90%,changing oil every three years, and filling my tank twice a year.
thats why Dave always listens and writes down the numbers first. They have 9K income and 3 mils in investments. They can get money without penalty. They can afford 90K car.
based on the number they bring in about $120k a year in pension/SS income and have over $3 million invested. This guy has a mental hang-up with saving money. I bet he is STILL trying to save their pension money when they should be spending every penny of it. heck depending on their investments he's making $150k-$300k plus a year just with that. I know too many retirees who drop dead a few years after retiring or lose their minds to dementia or Alzheimer's. you gotta live. his "budgeting" conversations with his wife should be... "hey honey, how do we want to spend $10k this month? want to do a trip to Tahiti? Italy? a cruise?"
62... she isn't changing. Losing battle. It's not that she isn't aware, it sounds like she doesn't care. And if she doesn't care today, she won't care tomorrow. If her mindset was just half of what it was, how much better would they be today? It's sad. Here's the icing on the cake: It also sounds like she will NOT drop the car, and would rather divorce him than to 'suffer the humiliation of returning' the car.
Thank God my wife saves plastic silverware from fast food and washes and reuses 1 cent ziplock bags. She finally stopped taking toilet paper from McDonald's and the office. I guess I was lucky all along.
@@jimroscovius yes, but patterns develop & they are hard to break without help. & her monthly income is triple his which makes it more difficult when that person doesn't want to be a real partner
The husband is the problem.... They are brining in $120k a year in pension income based on what he laid out. AND they have over $3 million in an IRA. They need to START SPENDING before it's too late. I know too many people who dropped dead 2 years after retirement or got Alzheimer's or dementia and that was it. If they have their money invested in the safest, federal funds based investment they made probably 5.0%+ or 150k this last year. If they have it invested in mutual funds.. they probably made closer to $500k this last year. It seems like everyone fed into this mans emotions and worry without listening to the actual numbers... his budget should consist of them trying to spend every penny of their pension money every month. Hey honey. we got 20 k to spend over the next 2 months... what do you want to do? Trip to Tahiti? Italy? Norway? a Cruise? want to spoil the grandkids? oh, and I bought you a spa weekend for you and your best friends. I'm planning to go deep sea fishing with bob next weekend. I'm gonna get me a shark. lol
They dont have anything to fix except the husbands brain Idk why the f is he stressing for with 7500 monthly income + 3mil in retirement making 10% = 300k a year, w t f is he scared of, more like HE is the problem
They are still young, go back to work and pay everything off before retiring again. Make it painful so they never get in this situation again. Pain can be an amazing teacher.
why? they have 120k a year in pension and social security coming in and over 3 million in an IRA and another $350k in another account... The husband needs to snap out of it. I wish Dave was on this call. he would have told this guy to stop being a jerk. they could afford to light a new land rover on fire every year if they wanted to. the husband could wipe out all their debt in a week if he wanted to. their budget conversations should be, " hey sweetheart, We made 10k on our pension and 30k on our retirement investments this month... Lets spend $10k on a trip to Tahiti, or Italy, or go on a cruise or something.
Wouldn't the three million invested generate enough with all their other incomes to pay for that and then some? My guess is that is what she is thinking. She is comfortable with making payments, planned to have this payment, and is not going to change. He won't force the issue and she knows it.
At 62, if you want it and can get it, do it. What are you saving for? Home and retirement are set. Both of them have pensions, Ira, and 401k. When do you stop budgeting and live ?
George Kimmel and Ken What’s-His-Name after hearing this family has over $3 million in retirement, $4,500/month combined SSI, $5,000/month retirement, and a dude complaining about his wife driving a Range Rover…… “Have you done the math? We’re going to run out of money….” Clearly these idiots have no idea what they’re talking about.
Honestly! I was thinking the same thing! I feel like I was hearing a different call than the one they were responding to. Also if he lets that’s money grow over 20 years, they will have so much more millions! And Ken’s talking about him going back to work 🤪
After paying off my car last year idk how anyone would willingly take on a car payment that's that crazy... you're 60, who are you trying to impress with a Landrover? Your grandkids? Buy a cheap KIA to drive to the grocery store twice a week and enjoy your retirement
They bring in 120k a year in SS and pension income and have over 3 million invested in their IRA. They could light a land rover on fire every year and it wouldn't matter. The husband has a budgeting problem. he still has that scarcity mindset and I bet he is still trying to save some of that pension money every month when their investments alone are bringing in 150k-300k+ a year depending on how they have them invested. (5-10%) heck. based on how the market is they may have made $600k this year. If you get to their level of wealth at retirement don't make the mistake of being too frugal. I know too many people who dropped dead 2-3 years after retirement or lost their minds to Alzheimer's or dementia. you gotta get out there and live. They gave this guy TERRIBLE advice. saying he might have to go back to work again. lol they fed into the emotion he was giving them and completely ignored the numbers he provide.
@@getinthespace7715 I'll be honest, I was listening to this at work and missed the amount he said they brought in every year, I only heard them reacting to the car payment amount and saying they were going to run out of money... if all that's true then you're right!
It used to be that Cadillac was considered the “standard of the world”. They were not only expensive…they were also somewhat exclusive. People would be impressed as it was a truly a status symbol. Once they were no longer exclusive, and the “luxury” began trickling down the chain, they lost that cache. Today…seeing a new Cadillac is all but meaningless, save for maybe an Escalade V. Seeing a Rolls or a Bentley in traffic is a lot more impressive to the majority than seeing yet another “luxury” SUV that can easily be bought by anyone who qualifies for the financing. Without the exclusivity….expensive vehicles simply don’t stand out to the masses. Ironically enough, a mint condition, base model K car would be far more impressive to the masses than a new Range Rover, due to their rarity these days.
@@DB-bw5fz I always talk about this, whenever I see an expensive car now, all I see is a payment because odds are that car is financed. Yes a lot of people have money and have them paid off but when you're at a red light and you're surrounded by brand new cars you know that something isn't right especially when I know what bills are like with a paid off vehicle and an above average income. I have more respect for someone that has a 20 year old truck than one that's brand new. Look at celebrities like Christian Bale, people always talks about how he still drives an old Tacoma and how impressive that is but no one cares what celebs are driving G-Wagons.
They have 3 million plus $10,000 a month income (two ss checks and her pension). They are rich. Let her buy whatever car she wants, - just pay cash for it. They don't have a problem. Hubby doesn't have to go back to work, - bad suggestion
I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advice but get buying, cash isn’t king at all in this time!
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