Number One Indicator Of People Who Retire Wealthy - Dave Ramsey Rant 

Murray Twins watch Warren Buffet not d. R

Same I'm 14😂😂 I don't want to go to college with student loans I'm going to try to get scholars

15 - you're probably the smartest one listening.

American Patriot great job!! Keep it up!

Spectro im sorry you have to worry abt the money for college. But stay extremely focused in school get the highest grades possible!! When you get into college you can work part time jobs and save save save save

Think * - good quote though

@@patrickpayton416 Thanks. I'll be the first to admit my spell checking sucks.

It's a good one, it's so hard to save it yet ppl say having a million at retirement it's nothing.

In soviet russia, million dollars save you.

This is awesome

People like that will regret when they have to keep working through their golden years

Hahaha

No, those aren’t real friends. That’s probably envy and jealousy. Good for your daughter! She’s on her way

J. Flaner Hello China from the US!

@@TheToadChild Hello there! Going on month two and I love it! I love teaching and teaching in Asia is the best!

Ben Chesterman great job.

Excellent for you sweetie!!

Im 30 and I have 80k as well! GOOD FOR YOU!!! That is awesome!

That's awesome man, young man! Keep it up!

Start when you are 18 and throw in $250/month to an IRA or RRSP and when you get your tax return throw it back in. You will be staggered how much you have when you are 30. Then you can dial back a bit to $100 and still have an amazing amount at 65!

This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $21k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Sharon Louise Count”, and she's really good.

4.2 million is waay better than 1.8milliom however 1.8 million is still an awesome figure.

Scam alert!

Not to worry. You're still starting early enough. Over the next few years, try to get that savings rate up to 15% as Dave suggests. (Maybe increase it by 1% a year?) Although I'd begun saving a little in an IRA before then, I, too, started saving in my company's 401k plan at age 26 (at, I believe, only 5% to begin with, so you're already ahead of the game), and my balance is looking great 12 years later. You will do just fine, I think. :)

Your still in your 20s you still got time ✊🏾✊🏾

I'm so thankful for the place I'm interning at. I can't afford to contribute because I'm trying to cash flow as much as possible until I finish college, but they automatically match 4%. It's not much, but I'm glad to be ahead of most other 21 year olds when it comes to retirement.

You still have plenty of time. Some people are twice your age and haven't saved anything. Have a saving plan and do your best to stick with it for a long time.

I did 40 percent for the past five years. I learned to not miss the money, plus I paid very little federal income taxes. Basically, I lived on what my Social Security benefits might be someday. I wish I'd done that my first 20 years as I'd be well into the millions by now, not that I'd know what to do with that kind of money as don't really need it - now anyways. When I'm 85 I'll need it. Students in school should be taught basic finances and investing.

Mark G Doing the numbers I've spent less than $44k on 5 used cars in 40 years. Most people I know and work with spent a minimum of $250k in 40 years.

8? Those are rookie numbers. I'm at almost 20.

SoulBaron how you do a retirement account from which bank?

Ramon vargas You open an IRA through Fidelity.

Chris Garner a pe a ba da a pe de pe

Ok Boomer

@@suad01 Ok loser

lol xD

shout out to my parents

That's actually pretty common in much of the world.

@@nolongeramused8135 i agree lots of tribes out there !

TheGlideIsHere it's better than nothing!!! I'm saving for double that too!

My retirement isn't that far off......I'm aiming and on track for 1.6 million, perhaps 1 or 200k more. 1 Million would be doable, but I'd rather live a little better than just good enough.

I love this comment!

If you aim at nothing you hit it every time. Dave is 100% correct!

@@DigitalHaze65536 I agree. The sad part is that all the people who do this will end up paying for all the now elderly people who did not.

Yup, invest 15% of your gross income every month. I started at age 30. The younger, the better.

Save your money or invest it ???

Jobelle Collie Wow, Awesome!!! Bless you!!!

Jobelle Collie 0p0p

Jobelle, God bless you... you're a $ ROCKSTAR!!❤

u are one brave survivor

You're a badass.

every situation is different.. Don't compare yourself to individuals , compare yourself to the mean

Another great video. Hope I am done with mortgage within 10 years (400k). Keep a small part in my retirement account. Best advice I got: Pay yourself first! Now all money which goes away and not increase my invest/safings hurt. :)

@@Blubbha Do you have children? i have a 250K mortgage and hope to be done in 25 yrs. I need to double down on payments for sure, but how are you doing it in 10?

@kirk McAllister the best way is to increase your income. You can only cut your expenses so far but your income doesn’t have an upper limit. If your wife doesn’t work get her back into the workforce once the kids are a bit older. That second income will help a lot with the mortgage, just put it all to paying down the debt and watch the number drift down to zero.

How is that not common sense. If people didn’t know that god help them

@@MOON-zo3ik he's talking about people who search for the magic 20% investment etc. I doesn't matter if you do 50% return on your 3% retirement savings plan. Just upgrade your plan to 15%-20% and you'll be fine ^_^

“Common sense is an uncommon virtue”.

@@MOON-zo3ik Many do not because they are living paycheck to paycheck and just trying to survive.

The number one indicator of having a lot of money for retirement is *investing* money for retirement. If you save $100k in a savings account, in 5yrs you'll have around $88k in equivalent buying power.

+wood brass and glass just give up then.

Yeah but a 1000000 dollars ain't gonna be worth that much lol!

+terminaterjohn no he said it correctly. with a 4% inflation rate, x amount of money 20 years ago is worth less today if it received a rate of return lower than the inflation rate.

which is why you need to retire with atleast 4 million plus in future

You also have to factor in that you didn't invest $1MM to get a $1MM in 2045, you've invested a fraction. so even if you get $200M..guess what, you're still on top.

Sweet Home Alabama

This guy is hilarious! 🤣🤣🤣

No, its SAVINGS RATE. Saving as much % of income and investing it in index funds dictates how well you will be in life.

And all too true! Even scarier when stupid people go to the polls...

Well...100+ years ago, if you're royalty, you're probably in the top 1% in your country, and chances are...your parents ARE cousins, at least distantly.

My favorite comment😂😂😂

That's actually the NORM in some countries: Saudi Arabia, Pakistan, for example where up to 70% of all couples are FIRST cousins.

❤️❤️❤️

Its a regional insult.

Hi Dave. Please respond if possible...I have found that people have that negative attitude because they DO NO UNDERSTAND the basics of saving. If people do not know how to do something they will resist it out of fear of not knowing...it's a downward spiral until they learn how step-by-step..

Mario Navarro I had a subscription to MONEY magazine. They bashed Dave in a multi page article, then in the very next page, tried to tell people what credit cards were best for them. That killed their integrity with me.

Credit cards are actually a tool that responsible people can use to save 3-4% on their expenses and sometimes even more. Dave's retirement strategy is out of the 1980's. It simply doesn't work in a time where over 1/3 of working-aged Americans aren't a part of the labor force because of no/poor job prospects.

+Synapse2k I disagree. Any system can be loopholed and exceptions exist to every rule. That being stated, the nature of a credit card is to give a person access to things or experiences she cannot or is unwilling to pay for when the money is due. During the last 20 years, the credit industry has received a third of its revenue from fees, interest, and penalties charged for lines of credit. It is statically impossible for that high percentage to be coincidental. Using credit as a means to make or save money will put you one step closer to earning that Ph.D in DUMB.

I use credit cards for every purchase for convenience and to get the cashback bonus. I've never paid a penny in interest or fees.

Hasn't taught you to spell.

It doesn't need to beat the S&P every year, to average out that way. There are a ton of mutual funds that average well over 12%. Some years you might get 7 -10% others you might get 13-20%. It does definitely depend on the choices you have on 401ks, but roth IRA's are there for everyone.

Most actively mutual funds do not outperform the index, thats over 80 percent. Of the ones that do, even fewer can do it consistently. The little guy has a better chance of outperforming the s&p doing it themselves. The active funds have a harder time due to expenses and they are too big and therefore too confined to move properly.

Did you got your first million yet?

just curious how is your business doing?

+The Megan Experience You can always invest in an IRA (Roth or Traditional), while you wait for your job to start letting you contribute to your 401-K.

I have to do research on this. I forgot what I am contributing to my 401k

avburns Heck that Roth IRA should be maxed out each year automatically. Also taxable savings and other investments each year like qualified dividends and tax free muni bonds. Don't just do the 401k only. You need to be able to have options to blend your income during retirement.

Get with a broker! Don’t always depend on “the job”. The job won’t depend on YOU.

@@avburns .... Fyi... I only do "Roth IRA" now. In the old days they only had Traditional IRA's which we did. Once we start taking that money out, we will have to pay taxes totaling apx. $350,000.00. Currently, your children can inherit your IRA's, so with a Roth IRA there earnings would not be taxable. (I think that is what I'm understanding, but those politicians are talking about changing that but you still benefit.) The Megan Experience.... Unless you are really rich, I encourage you to continue to work after age 40. Just find something you love doing. Money flies out the window faster than you know. You may develop health issues and insurance doesn't cover everything unless you pay a lot for insurance coverage. Investments can go south. (I know people that had bonds that went defunk... over $600,000.00 gone from there retirement funds.) Good luck.

I know, he's so arrogant sometimes it shocks me.

He makes money from advertising tied to high fee mutual funds. If you really want to talk about a "study" you can see how much high fees cost you in the long run. He is a smug, arrogant SALESMAN. That is it.

Cory Blevins you know this for fact?

I am only an old country boy, but after listening to Dave for 2 decades and following his advice, I have yet to meet anyone that has actually tried following his advice that becomes worse off. When I started listening, he was on less than 100 radio stations, but I have followed it pretty diligently and managed to average better than the S&P, net fees, and I am just a stupid truck driver. Some of us would just like to thank him for laying out a simple way to win.

Vanguard is hard to beat. a mix of large cap, mid cap, small cap and international index funds, along with cash and a short term bond fund would work for most people. the exact balance would depend on your age, investment time line and tolerance for risk. Vanguard ETF's would work just as well. Good Luck.

How do you start if you know nothing about how all that works?

@@yeahgirl11 Learn every day. For starters, read "The Little Book of Common Sense Investing". Then you can read a book on real estate if you want, but the first book is all you need to be convinced to start investing passively in index funds.

Good thing you didn’t listen to them. Your dads advice demonstrates that people really don’t understand compound interest.

Betcha dad has a pension and sis is green with envie and not much fun to be around.

Vern Shein 💯 some things are just simple.

@@Kenya1984 lol

Because government..

Most people in that position made are in that position because they made stupid career choices.

What's low income for you?

1notgilty your a loser

He rounded up a few percentage points.

My fidelity is 10+ % On large mid and small cap Also international

Vanguard Retirement goal 2045 fund has been 11% for me

It is right next to the toothfairy and unicorns.

She means having a job vs. owning a business, not being unemployed

@@weemeemoo Nope. She had already made it clear that people are "owed" a certain level of income. The remark was simply an ad on about how unfair it is to have to work. I worked for forty years and don't recall having made anyone rich.

haha. true.

and rice.. lots of rice. Mix it in the Alpo if needed.

Raman is good. Put an egg in there!

@@davidl248 yessss! Yum.

@blah blah Only use half the season packet to reduce the salt 👍

On this day and age is going to be very unlikely to find an advisor that won´t want to sell you something because of the comissions they receive. Why would they get paid otherwise? So take ownership and do your research if a product is right for you. One of my advisors is paid to sell me products (AND she is family, LOL! She´s my aunt, and because of bad advise she is having problems with her own children and son in law). I did my own research and created my own investment mix, though. She is using my portafolio and advising her other customers to mimick it (those who can, it´s a pretty aggressive and risky mix and you need a heavy sum to start, it´s not for everyone). She doesn´t know how I did my assumptions and run my numbers and created the mix. But I´m getting 16% to 18% returns a year, she was offering 8% to 12% a year, and I knew it was BS, the company´s standard mix is giving 6% to 8%, but they advertise 8% to 12%. I knew it was BS because I did my research! If someone is interested, look into Allianz. I have a third on my money with them. Another third is in retirement accounts, I can´t access that money until I´m in my 60´s. And another third is on 2 companies, with a fixed rate of 6% and 8%. I´ve been financially independent since I was 26 y/o. I´ve started saving since I was 17 and investing since I was 19 y/o, though. Around 40% to 70% savings rate..

Completely opposite of Dave advice and I agree with you

12% is a number that if you are lucky you will get over some period of time. He's talking as if he can get it over 40 year period which will be a major challenge. Number one reason people succeed in investing in 401(k) plan is to actually put money into it. Of course that is the case. However, he was incorrect in stating 11% invested steadily into it will be more than 11 times as much as putting 1%. It is exactly proportional so 11% vs 1% is going to end up being exactly 11 times as much. As usual, he has fuzzy math. I suppose he isn't the only one that doesn't include inflation. Most money books neglect to mention any inflation in their illustration. I also want to know when a person actually commented on his lack of inflation, if that person actually used that as an excuse to not invest. The reason people don't invest usually is because of confusion and misinformation. It is just as harmful for people to invest with too high of an expectation as it is to not invest because of too low of an expectation. I for one knew the issue of inflation thus I planned for it. In fact, inflation itself compounds so if you get 10% investment return and 3% inflation, it actually is less than 7% after inflation. 1.1/1.03 = 1.06796.... about 6.8%. Even fewer books cover inflation in that detail. Because we are in a low return environment, the impact of commission and costs and drags like inflation are even more important than it has been in the past. I know Dave's response is that I'm splitting hairs but we're in a world of index fund having expense ratio of 0.05% so in that context, the difference is significant especially over a longer period of time. He states in this video that $100/month for 40 years gives $1,176,000 then commented it is average annual return and not compounded. Actually, the returns using compounded return of 12% return is $1,176,477.25 so he is incorrect again. So he did mean compounded yet after a lot of critics stated 12%/year was not realistic, he stated it is not compounded. The problem is that simply arithmetic average is not something you can take to the bank unless the returns are absolutely stable. Once it goes up and down, the arithmetic average return will always be stated higher than compounded (or geometric) return and the divergence can be huge depending on the fluctuation of the market. I'm surprised he has a finance degree. This is something he ought to have learned by the time you graduate from high school. Getting the return to be 10% which is still probably high, 40 years of investing $100/month will be $632,407.96. I suppose using 6.8% might be closer to reality that people can understand if a person put $100/month and increased it by inflation and trying to figure out the money at the end of the 40 years in today's dollars. The number is now $248,192.10. It's not bad considering the amount of money put in at constant dollars is $48,000 or about 5.17 times. That still might be too high of a projection but I don't think it is a disincentive for people to save. I think planning should be done with realistic expectation. Otherwise, people will think that because we can get 12%/year return, even if it goes down a fair amount, you can catch up pretty easily later on. So without realistic expectation, the concept of controlling risks also goes flat on the face. It also makes it difficult to compare with other investments which a person may be comparing it against. The 12% I believe actually originated by the fact that the highest rate of return that can be used for illustration for variable life insurance policy is 12%. If insurance industry can use it as within "reason", he thought he can use it for his illustration and get away with it. As we face lower return environment, more people will criticize this approach. Dave is still not budging from 12% despite huge evidence that his numbers ought to be adjusted for today's realities. He fends off critics by stating a few funds that have done better than 12%/year but those records were set over many decades. The average for the fund in the last decade is less than 6% and both funds he used as examples under performed the market. Returns are important for sure but you need to be able to get through the declines. The problem is that there's no reliable way to pick winners over losers on similar funds except by cost and tax efficiency especially over longer periods of time. This is why statistically, it is better to use index funds for lower fees, better tax efficiency, etc. for most people. It's Warren Buffet's advice and in fact, the money he is leaving for his current wife is 90% in S&P 500 index fund and the rest in cash. www.fool.com/investing/general/2013/06/03/dangerous-retirement-planning-advice-from-financia.aspx www.daveramsey.com/askdave/posts/126808

if you bought fnma few months ago you would have more than doubled your money already. Its going to 20+ dollars a share within 12 months

One of Vanguard's, for instance, shows 16.58% avg. over the last 30+ years.

Francis Ebbecke the S&p 500 has a average annual return of over 16% for the past 10 years

@Jolly-Joy Money you do realize that probably 75% of people who listen to Dave are not good with money right? Dave wants you to invest for retirement. Put money in. Fees and rate of return are not the goal here. Yes, I agree they matter.. but you got to put money in first!

This is my issue with Dave. Gives good saving and getting-out-of-debt advice but his investing advice leaves something to be desired

Agreed. Conflict of interests.

Exactly!!

Lol, that wasn't the point. He mentioned pretty clearly that saving was only %74 of the issue. The other %26 speaks for itself.

would love an update.

Good move dumping Ed Jones

@@cameron_fairchild well our stocks have done more than break even but we also bought more rental property, started a home repair business and are building our own RV park. Rather than try to grow our savings thru good stock picks we are trying to keep steady streams of income thru our lifetime.

seriously

Reheapification I've had a retirement plan through my employer, and have maintained an average of 14.8℅ since 2009 when I started it.

Yes it is a bull market during the period right after the crash up until now. I am talking about the long term performance.

I am too. One of the funds available has maintained 11% since the 1940s, so why is 12% so unheard of?

Reheapification don't diversify too much. Read the intelligent investor by Benjamin Graham, just find few good companies and stick with them.