I know these things work, but it's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to use what's left to invest, but I don't really know which way to go.
I understand how you feel. It's a little bit difficult to navigate things these days. You don't wanna lose whatever is left. I may suggest that you find a financial advisor who could give you thorough advice on how to go if you want to go the investment route. Also, the fact your business failed doesn't mean you should give up.
That's right. I have tried many failed businesses and it's just a step further. Don't despair. But to add, if you do decide to use a financial advisor, it's best you use someone who understands your special needs and can work with you. I learnt this from experience before finally finding one I can stick with. Now I make six figures from my investments alone, and even more from my businesses.
‘Melissa Maureen Ward’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.
my job doesn’t permit me the time to properly analyze my holdings/evaluate stocks myself, so I’ve had a fiduciary actively restructuring my portfolio for the past 7 years now to match the present market condition and that’s how I’ve been able to stay afloat, knowing when to buy and sell…maybe you should do the same.
Tenley Megan Amerson is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before engaging her services. She seems proficient considering her résumé.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Melissa.
I'd retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $120K per year but nothing to show for it yet.
You should contribute to your retirement diligently, or better still look into financial planning don't come to youtube for advise, consult a Local or trusted advisor
Very true, I find myself lucky enough exposed to money management at an early age. Worked full time when I was 19, purchased first home at 28 fact forward timo I'm 57 now not laid off
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I've been with Eric Paul Elmer for the last five years or so, and his returns have been pretty much amazing.
15 year fixed rate at 25% of take-home pay is almost impossible for most people. After investments, our monthly take home pay is around 8k. Getting a 2k mortgage requires a loan size of like 300k. 600k is the new price for average homes in semi-desirable locations near cities. Putting 300k down(!) on that leads to 30 year mortgage+ expenses equalling like 2.1 assuming a 5.5 interest rate. Brutal.
I don’t quite understand the solid No on consolidating debt. Yes, obviously it’s a no if it’s the same/higher rate. But, assuming it isn’t a variable rate; why not consolidate / refinance at a lower rate, and make the same payment you were before (which will pay it faster) it AND pay off with extra payments ASAP. For example. Credit card at 22%, 10k like the poster said. Have another $6k bill coming up thru can’t afford, so it’s obviously also getting charged. Then get a personal, or debt consolidation loan at say 10-15% It will be paid off faster with it without extra payments. It’d be like saying don’t refinance your home, cause you need to pay it off faster. Yes the refinance costs money. But if it’s 1-2% cheaper, it’ll just mean when you pay extra that it’s paid off even faster
My husband and I are in the same boat, and I’d say act like you’re still in debt!! We’re technically still in debt with the mortgage, so we’re trying to pay it off as fast as possible. Now we haven’t picked up extra jobs, BUT we put any extra money towards the mortgage every month
Great job!! Since you’re on a roll, you should open an investment account and auto transfer the money that you were using to pay off debt to that account every month … that’s what I did when I became debt free in 2018 and have amassed over $300k in investments!
3:47 @ITSTHATHNUNU I assume you're a PGY1. In most states, when you become a PGY2, you are allowed to moonlight and can make some incredible money. For example, I have friends who've worked a weekend at a jail, urgent care, nursing home, rural ED, etc and made 5,000 that weekend. It is VERY possible to make a very large "side hustle" living as resident. So, no.... don't waste your time, knowledge and monumental effort of graduating medical school and matching into residency by getting a server job.
Depends on the situation - if you don't have any heirs to consider, you could spend it down responsibly (i.e. 4-8% "Rule"). In my case, I have Roth holdings that are designated for inheritance, so they'll be invested more aggressively and never touched. Meanwhile, we'll have the Traditional holdings conservatively invested while trying to spend it down enjoying life.
Hmm I don’t like that debt consolidation part. If they can lower their interest rate it makes sense, to say you might not get a lower rate is just misleading. Most of the time it will lower the interest rate or else there would be no point of doing it. 15% on a personal loan is better than 30% on a bunch of credit cards. I think you should have said don’t do it because people end up putting the debt back on the now cards that were consolidated.
You beat me to it! I made a few mistakes with cards when I was young. Consolidated and kept to a plan not adding to the debt, and with the lower rate was able to put more on the principal. It's a matter of research and discipline.
To the resident physician: yes it’s weird to waitress. You can moonlight at clinics and urgent cares for a ton of money and actually use your medical knowledge. My residency moonlighting gig paid $115 an hour
That...actually makes a ton of sense. I know in Florida, I haven't seen a doctor in like 20 years. I always wind up seeing PA's since they're allowed to essentially act as doctors so long as there is a doctor in the practice. Seems logical that someone in residency could basically do the same thing!
Yes, but a lot of programs will limit your moonlighting (they legally aren't supposed to let you work more than 80 hrs/week per ACGME). I would definitely explore the moonlighting option, but he or she may find her program limits it.
She might live in a rural area where these options and income levels are not available, and as someone who makes a lot I can make more with overtime at work but I HATE BEING THERE! So something in a different industry with different challenges sounds more appealing even if it pays less.
I can take money from my CD. I'll lose the interest, but the same would happen with a savings account. My savings account became an ELYSA. Extremely low-yield savings account 0.01% APY and is why I moved it into a 4.75% APY CD.
I did a debt consolation loan and it helped out a ton. It forced us into paying HIGHER monthly payments and it has a substantially lower interest rate that didn't change. It also skyrocketed our credit scores, basically overnight. It was fantastic. Not always the answer but not never the answer either.
There’s no such thing as maxing out your investments. You can max out your available retirement accounts, but you can invest an infinite amount elsewhere.
To the person that asked about moving their 401K when changing jobs: Many companies will allow you to roll your old 401K into your new 401K. One reason you may want to do this is if you want to retire before age 59.5. It’s not always possible to access IRA money before 59.5 without paying a penalty, but if you retire, you can usually access 401K money.
1) if you're moving, don't put extra toward your mortgage. The value of your house could go down, and all that money you've "saved" in the house is now worth less. 2) If you want to do backdoor Roth contributions, don't roll your 401k into a traditional IRA. Keep your old 401k or roll out into your new company 401k.
Yea…the math on that at current rates means even if you’re looking at a modest $300k house (not even possible in some markets) AND you’ve saved up 20% down so you’re only financing 240k, you’d need to make about $120k a year to fit into his 25% 15 year rules. Unrealistic for a lot of people. To stay under 30% of income for a 30 year loan you only have to make about $80k. Much more realistic guidelines for a lot of people.
I have $4.2M at 33. Everyone should treat a brokerage account just like a 401k after maxing retirement accounts. Look at the value in your 401k. That’s what you can have if you invest in a brokerage account the same way. Consistent, every week or every 2 weeks. NEVER STOP and double it when markets drop.
That’s impressive! Wish I had started younger instead of going out with friends and spending too much money! I’m trying to make up for it now by investing hard core!
@freedomring3022 I like Caleb too but it's not exactly the same lane. Entertainment, yes. But educational or well edited, not really. @OP, The Money Guy Show would be my recommendation
Paying off all consumer debt is literally finishing the hardest baby step. It seams like you only have your account for trolling tho and trying to make other people feel like garbage. You need to get out of your mother’s basement and get a life. Because clearly yours isn’t worth much to you if you just sit and troll people bettering themselves. Get a job and turn your life around and stop putting people down.
I have a fairly low interest rate on my mortgage, one that I would be inclined to not pay off and just invest to make more. But I really want to experience the feeling that Dave always talks about.. the change in stress from not having a mortgage. I want to give it a try, hoping that it’s as good as it’s made out to be. Can’t ask anyone around me, they’ve never done it.
The point about the baby is so accurate. People who are spenders will justify spending like crazy when they have a baby, and savers will take a more considered route. The difference in how we are spending vs my sister in law is stark. Especially because second hand baby stuff is nearly free.
We have one Credit Card that we pay off every month that we only use for online purchases. A Debit Card that we use for everything else. Would like to Cut Up the Credit Card but have been told it's not safe to use a Debit card for online purchases. What are your thoughts?
Currently, in my financial position, I am able to invest about 50% of my income every month, not including the amount that I put into my 401k contributions (plus employers match). I have a fully funded retirement using the 4% rule (with some extra), With the exception of my house, I have no debts, and I have a 6-month emergency fund, and I dont seem to really have a want for anything extra in my day to day life that would be reasonable (a bigger house and new truck would be nice but not needed). My question is, should I be putting less into my investments? If so, what should I do with the rest of my income, other than saving up for a new house or truck? (For contex I'm age 30)
Make sure you put at least $1200 in the cash portion of your brokerage account. That way you get the interest that pays for the Robinhood Gold monthly fee without hitting retirement dollars. If you don't pay for Gold it's a 1% match instead of a 3%.
He was an average George, but a curious one as well. Had to 😂 Daycare is by far the biggest expense with children. We have three aged 11, 8 and 3. Averaging about $2k/month per kid over the past 11 years. Stick that in a retirement calculator....
@@GeorgeKamel my man when they were newborns through pre-school. Ages 0-5. All three of them in daycare during these years. We've had pretty much 11 straight years of daycare and have a couple more years to go. The 11 and 8 year olds do summer camps now. Another large expense people may have to prepare for
@@GeorgeKamel Here in Canada, you need to pay for daycare during lunch time at school, and before and after school if necessary. Elementary school ends around 2pm so you probably need day care after school. And since there is no school during summer, you need to pay for summer camp (acting as a daycare), costs around 2K for the summer. So daycare does not end when kids are going to school.
Hi Kamel Just a doubt as a math nerd; is it better off for me to do minor aggressive repayment of mortgage in 8 yrs instead of 5 years and save the excess in brokerage account, where i get pretty decent returns Quick background - have a 15 yr fixed and monthly payment is approx 27% of take home
I would like to know more about what to do after maxing out your 401k and IRA. The HSA is not something that will work for me or my family. Any other options?
I’m saving in a Roth401k, do those contributions count toward the Roth IRA limitations? Can I keep contributing at work and start max out a Roth IRA at the same time?
My employer is offering a Roth 401K for the first time. I’m contributing 20% in my traditional 401K. Should I pull back to 15% so I can open a Roth 401K and contribute 5%
Guy with no debt looking for some clarity. 1) if you consolidate at a lower rate and keep your payment the same or more, how is that not better? 2) assuming there are going to be 0% transfers, shouldn't someone just do that over and over when their teaser rates expire till they are all paid up? Sorry if these are stupid questions
I never understood, and it seems to be more prevalent the last 10 to 15 maybe 20 years, why parents need to pay for their children’s college. I told my kids if they want to go to college to hit and figure out a way to pay for itresponsibility to figure that out.
Eww Don't pay down the mortgage. Put the money in offset so it's ready to use for a new house. Maybe you want to keep the old one too. This video is too conservative.
You recommended rolling over old 401k accounts into an IRA/ROTH IRA. Do you recommend the same for a ROTH TSP account if I'm no longer in the federal government sector?
One of the best moves we did when we had our kid was to find a friend or two who had a kid about 6 months older. Take all the stuff they have outgrown off their hands. And then once your kid is 6 month old and you have a pile of stuff its outgrown, pass those on to the next new baby.
Hello George, The "Reasonable Mortgage plan" is unfortunately almost impossible to apply in Luxembourg 😞 A "normal" 2 bed apartment costs + - 1M. If we try to apply the 15 year fixed rate (currently at 3,8%) the installment would be roughly around 7.000€. And if 7.000€ wound not be more than 25% of household income, the couple should earn at least 28.000€ a month !!! This would be great 😍 The average salary in Luxembourg is around the 2.500 to 3.000€, which makes it either very difficult to buy a home or makes you overendeted crossing easily the 50-60% threshold.
if you max your investments and still have money leftover, start doing all roth 401k and roth ira. that will hurt quite a bit for myself. still got money leftover? pay down your mortgage asap. this assumes you have 0 debt besides the mortgage
Is there a way to contribute exactly the contribution limit amount for 401k (ex: 23k in 2024)? It’s a bit tricky because you have to put a percentage of your paycheck which change slightly. And also you have to invest monthly to get employer matching. Then we have to kind of guess a percentage of each paycheck so the total is between 20k-21k so it doesn’t exceed 23k. I want to be able to put the exact number so it could be 23,000 or whatever the limit is per year.
i went the other way. cashed out. ran the numbers and i don't need the emotional roller coaster. waiting to collect ss in a few years. i have a large nest egg and a tiny lifestyle. ins all paid up, no legacy, off grid homestead. ''rethink the market route.''
Can you explain more about the back door Roth? I am debt free and I am maxing everything out. I was thinking about opening up a brokerage account and once a year tranferrring it to my Roth. Is there a specific amount of money you have to transfer?
SO glad you released this video in particular Blcktken300. I was accumulating AR and then saw your video last year saying that you see Blcktken300 may hit 300-400 and then you changed your view. Great and very informative!!! Thanks
I would guess the introductory interest rate that "gets jacked up" doesn't apply to savings or investments accounts. Probably can apply on loans though.
Awesome; thanks! This is just the question I had and was searching for this week. Have you been watching my search history?… 👀 This is great bc I didn’t know about brokerage accounts before now.
I can’t help but feel like some of his advice is way outdated or just too emotional And yes I know finances tend to be emotional. But still there is no good logical reason to pay off small debt regardless of the interest rate And then getting a 15 year loan that is 25% or less than take home pay? Seriously? Then people would never buy a house because they’d spend decades saving
Having a mortgage or rent be 25% (some will say 30%) of your take home pay is like the oldest standard advice around (its not just Ramsey). Apartment I companies and mortgage companies will look for this. What percent of your income would you be able to comfortably put towards a mortgage and still have enough left over to live (and hopefully invest a little)? And yest, home prices are insane and interest rates are up, and buying a home is getting to be impossible for more and more people, but that doesn't change math - you are going to struggle if you are spending, say half your income on just a mortgage.
@@arthrodea It is just not realistic, especially in California. If I followed that advice, I would be way behind where i am today (I know this anecdotal but it applies to a ton of people who bought in the past few years and avoided the insane rent increases and hedged against inflation)
@@itskelvinn But what percent of your income should be ok for a mortgage? Because I don't care about following Dave Ramsey, like he's some God, but just realistically, if over half your income is going to a mortgage, that leaves very little money to live on or invest.
