You SHOULD Have This Much Money By 40? 

@WintWealthYT .. please explain the calculation of 26x and 35x in details. I mean is the figure that's coming is a FIRE number at 40 or a number which one must have at age of 60.

@@abhishekbera5157 Whenever you achieve this number, You are financially independent. The earlier you achieve, the Earlier you Retire.

You are right.!

That is why I had to start forex trading 2months ago and l now am making benefits from it.!

My first investment with Wonghuatrades gave me profit of over $80,000 Us dollar....

And I can even say she is the sincere broker I know....

O' Yes I'm a living testimony of Wonghuatrades

The problem is that most people don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.

And let's not forget how the global economy plays into all of this. Economic instability, inflation, and market fluctuations can further complicate matters and add to people's financial worries.

Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes .It's always good to have a financial plan,

No doubt being financially free and not having to worry much about retirement, Consistently rising rates, health care and other expenses cannot be overemphasized, making smart plans and setting up diversified investment portfolios is quite essential.

Good point.. the market has been crazy lately, a few surprises here and there.. with all the global happenings taking place I think it's safe to say that a severe global recession is looming...

Specially IT jobs 😢

Plus insecurity of jobs - these guys say you will have lots of salary but we are not sure. Not all junior people will go to VP or director

What kind of comment is this? Complete Nincompoop

You are right sir, but the thing is they'll be more pissed once they retire early in their 50s as they won't have anything to do. When one achieves financial independence, they can keep their job but at the same time be stress free, as if they don't like their job they can quit or do something else, but doing nothing once you have financial issues taken care of feels dumb.

That's not true it gives them power to choose

depends on your expenses but most people retire with less a million in retirement assets. you can seek advise from a certified advisor

I think of it this way - merely putting $1m into a CD at 5%, you're making $50K per year. If you can swing that for the next 10 years, go for it. But then again, if you have to pay taxes on this $1 million, you should consider working for another 5 years

I'm quite lucky exposed to finance early, started job 19, purchased first home 28. Going forward, got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help generate cashflow by investing. As of today, my return on investment has yielded over 300%, summing up approx. $1.3m. Stay motivated friends

@@ATscott this is huge! your advsor must be grade A, mind sharing more light on your investing experience? in dire need of proper asset allocation

Can't divulge much, I delegate my excesses to someone of great expertise ''Karen Lynne Chess'' preferably you can look her up on the web, her qualifications speak for itself.

Can u please tell me the name of the book.

@@ARTYIDEASWITHPREETI Let’s Talk Money -Monika Halan

@@hilly_billy9531 Thanks

Try to save 50% and more from your salary and avoid taking personal loans, product loans and incase needed home loan make sure the EMI is less than 15% of your salary and that EMI should not hinder your monthly savings of 50% and more. Invest your monthly savings of 50% and more in Mutual funds, ETF's, Bonds save FD deposits and Health insurance (for atleast 75 lakhs and more). You will become fearless and be able to take the best smart decision in your life.

No one is denying that its tough, but the problem is that people don't start at all by giving this very excuse and end up increasing their expenses. Even if one is not able to put aside 40% from the very onset, atleast starting with a small amount and keeping at it helps inculcate the habit. I myself only reached 30% I think by the time I was close to 30, having started in my early 20s with just 5000 a month. Also, regarding all the savings being used, its important to bucketize the investments so that one knows which is the bucket one can dip into in times of need or to fulfil a goal. Investing without goals in mind is never gonna help.

I completely agree with you. However we can attempt to save & create side income to get out of the middleclass trap

Try to save 50% and more from your salary and avoid taking personal loans, product loans and incase needed home loan make sure the EMI is less than 15% of your salary and that EMI should not hinder your monthly savings of 50% and more. Invest your monthly savings of 50% and more in Mutual funds, ETF's, Bonds save FD deposits and Health insurance (for atleast 75 lakhs and more). You will become fearless and be able to take the best smart decision in your life.

@akshaypai2096 Most of the people in this decade are not interested in saving money, once they get a good job or wealth opportunity. In 2024, people in their 20s and 30s try to look like millionaires, and only aspire to get high paying jobs, and think of saving money as a form of wasted youthful days (i.e. if you haven't spent all your money and enjoyed life, then you have wasted your younger life), which is wrong as people can enjoy their life even in 50's, 60's and in 70's.

It is a foolish point. Annuities give guranteed income that you cannot lose. Annuties also give you a gurantee that no one will steal your money. Having too much cash means that people will ask for their share of inheritence or even kill you for your money. There are a lot of benefits on annuities.

@@ppen8359 I think she was more pointing to the companies that are managing your annuities and not annuities as an investment. The insurance companies, lesser said the better. Most of us know that insurance companies have no business to be in the investment business because it is not in the best interest of the investor. I can trust them on my insurance, not investment.

In my opinion, IRA is a valuable strategy for retirement planning, providing growth and tax advantages. While the market is promising, expert guidance is essential for portfolio management.

I learnt this when I got disabled from an accident, I had to reach out to a financial planner who devised a plan for me to live off dividends from my investments. Other than Disability Cheque, I earn enough from home and live comfortably with her help.

Why? Here I am at 58, wondering if I should work till 65. I really don't know why I would stop working, though I have made enough money to last till my grand children's life (as long as both my kids have not more than 2 kids each)... If I stopped working, I feel I'll start rusting. Work is something that gives meaning to my existence (more than money)... Being employable is about staying relevant. if you aren't relevant - you are out. Unlike in Govt, where even irrelevant people are tolerated, private sector can't afford irrelevant people. So, keep your skill up to date - or find something else you can do. As someone who started in computer industry way back in 1980s, I have kept up with the tech trends, earned my management chops along the way, today part of C-Suite... If you are not able to put your years to good use - then indeed you will be forced to retire earlier.

Y is it difficult?

I felt the same especially for fast changing industries like Infotech. I've seen a lot of personnel being laid off for various reasons and when it comes to people in 40s & 50s, there aren't as many positions which map to one's profile and pay as much. This is where she rightly emphasized about skillset, basically one should be seen as a capable leader giving a good overall return for the higher salary.

​@@neokarma5736it's not just about skill my dear. There is nothing so exclusive that you can bring in a huge HR world like India. So it's more to do about age/package/industry/wave etc. if a layoff comes, you are one of highest paid on the floor. Count on it they will get rid of you. Your time was different coz MNC would fire US/UK/EU staff to save...bt now Indians have started feeling heat coz no more ppl left to fire onshore. I don't see a single 50 yo in my whole company. It's 500+ staff MNC ofc and same is mostly everywhere.

@@007_Sun_Tzu If by your 50s you are not having the skills to be in a executive position, where you decide the direction the company will take, then you are right - you may lose your job. If you have such skills in such critical positions - then only reason you will lose the job is because company itself collapses. Otherwise if company keeps running, you will be needed to run it.. Most people don't get to such positions , because top of the pyramid is very narrow and the skills needed to be there aren't hard skills - it is soft skills of managing large teams or markets.. If you have such skill in a steady state company, you won't lose your job till you decide to leave.

Indeed, it's quite a sum. I've been retired for three years now, and I'm only 46.

​@@EricaWaters-lr6zw Nice...even bots retire now😂😂😂😂

Eloquent matlab?😢

Hey Muskan, agreed and suggestion taken. We'll definitely try to highlight more female investor journeys.

Glad you think so!

Risk of volatility, debt is fixed moreover

And your comment made our day (:

Just reduce your expenses dude...else your math is correct

Yes.

No! That’s the corpus you need at 60. What you need at 40 is the present value of that future value with rate of return you expect.

Hi Ravi, the expenses you consider must only be your essentials and those expenses that are expected to continue even after 60. So things like child's education and other one time expenses will not be considered. The expense estimate that comes up after removing those is to be extrapolated to age 60 and then made 26x. Also, you do not have to reach this corpus at 40. The age linked milestone she mentions is basis income, in which a person should have a corpus worth 3x their income at 40 and growing upto 8x at 60.

Kindly read "Lets Talk Mutual Funds" book by Monica halan. It is also available in audible which you can listen to

Also, that money cannot be stolen by anyone. Too much cash means people will come after you for money. People do make mistakes when they are old.