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How Much Money You Should Have Saved At Every Age | Retirement Savings By Age

user 0 Comments September 13, 2023 Retire Wealthy Retirement Planning

hey everyone this is lauren mack with hack in the daily grind when it concerns retirement and also strategies for conserving for retirement individuals frequently ask just how much cash should i have saved at every age in order to reach my retirement goals this can be a really difficult question to answer due to the fact that so much depends upon one'' s way of life age in which they intend to retire objectives during retirement and more in this video clip i'' m going to chat about just how much cash you need to have conserved at every age for a typical american planning for retirement if you remain till completion of this video i am going to show you a tip that you could be able to utilize in order to considerably reduce the quantity of cost savings you will require in retirement and potentially decrease the quantity of time you'' ll have to function in order to get there additionally if you see this video clip and think you'' re behind or maybe you sanctuary'' t also began saving after that i have developed a workbook called from xero to retired life which walks you step by step through getting your finances in order as well as conserving for retirement i'' ll put a web link to it in the program keeps in mind listed below so let'' s jump right in the key to having enough cash to live pleasantly in retirement is to start conserving as early as possible this means beginning in your 20s lots of people in their 20s are just starting their occupations whether that'' s freelancing in the digital economy starting an organization going into a profession or finishing up university as well as starting a profession either way people in their 20s typically have really little save for retirement and also regularly not can discover themselves in the red due to institution financings training start-up prices and even entering the labor force which is all right if you happen to be somebody in your twenties that has handled to stay clear of financial obligation and also have actually cash conserved then congratulations you are in advance of the curve the very best piece of economic guidance i can give somebody in their 20s is to begin creating great economic habits while in your 20s because it will be a remarkable advantage throughout your life at this age there actually is no certain amount that you need to have saved although the a lot more the much better i generally recommend that if you'' re in your 20s you should a minimum of have an emergency situation fund of one to 2 months well worth of expenditures conserved up the factor having a reserve is that it can aid you stay clear of falling under the debt catch i actually recommend that individuals of any ages have a reserve alloted that is quickly obtainable in money so this is a great practice to start early talking debt lots of people in their 20s are fresh out of school ultimately making some great money and it can be very appealing to hurry out as well as financing and buy a fancy vehicle maybe some developer garments and even a pleasant bachelor pad yet prevent the temptation to do that naturally when you'' re simply starting there are requirements such as getting a car to obtain you to work or maybe appropriate garments for job nonetheless it'' s important to try not to live beyond your methods or max out your charge card lot of times when you do get your very first work among the benefits offered to staff members is a firm funded retirement account like a 401k frequently the firm suit implying to a specific portion the company will certainly match the quantity you place in so if the business match is 5 then if you place in 5 they will match your 5 i constantly suggest signing up for a corporate sponsor pension in my video clips and i constantly recommend contributing at the very least up to what the business will certainly match because this is like securing free cash as well as it'' s taken into consideration component of your payment package what happens if you help yourself as a freelancer entrepreneur or benefit a company that simply doesn'' t offer a retired life account then i advise opening an individual retirement account or roth individual retirement account and adding to the annual maximum restriction individual retirement account represents individual retired life account if you intend to find out more concerning the distinction in between 401ks iras as well as raw diaries i produced a video clip called roth individual retirement account versus conventional ira versus 401k i'' ll link to it over and also in the program notes below to sum it up life in your 20s need to be everything about establishing great cash routines make certain you have a reserve of at least one to two months of expenses 3 to 6 months would certainly be excellent set up a retirement account either via an employer-sponsored 401k or your own ira or roth ira as well as lastly make certain to avoid the financial debt trap live within your means the more you can begin spending beforehand as possible the quicker you'' ll have the ability to retire so currently allow ' s speak concerning your 30s now you'' ve most likely remained in the labor force for some time and also with any luck things are proceeding well with your chosen profession lots of specialists suggest by the time you reach three decades old you need to have one year of salary saved up so for instance if your yearly salary is fifty thousand dollars a year then you must have fifty 000 conserved up and also spent this quantity of financial savings should be in addition to the 3 to six months of savings that ought to be concealed in your reserve in order to shield you from falling under the debt trap as a result of task loss clinical bills cars and truck repair service talking of financial debt by the time you reach 30 you really should try to eliminate what i think about uncollectable bill some instances of these are credit history card debt vehicle loan pupil financings and so on paying on these kinds of financial obligation each and every month avoids you from investing the difference and also limitations your ability to additional spend as well as add to grow your nest egg as you saw in the earlier instance in your 30s it can be alluring to stay on top of joneses as well as live beyond your methods much of your pals as well as acquaintances will certainly obtain big fundings to get an expensive home they'' ll obtain large amounts of cash in order to acquire a luxury automobile in order to provide the illusion of wide range prevent falling under this trap and also really feel lured to complete with these individuals by making the same errors 98 of the moment these wealthy individuals are in fact very leveraged and really damaged the best means to get out of the rat race fulfill your retirement goals as well as also retire early and rich is to live frugally and also within your means alright so now you'' ve reached 40 and you ' ve managed to not give in to the financial debt trap that many individuals come under in their 30s you need to be extra financially secure than you were in your 30s so just how much must you have conserved for retired life by currently well most experts suggest that you have 3 times your yearly salary conserved up so for example if you make sixty thousand dollars a year you ought to have a hundred and also eighty thousand bucks conserved up as well as invested in addition to this should be maxing out your payments to your pension that we'' ve been discussing that is truly vital not just to aid grow your investment but payments to your pension can decrease your total tax obligation responsibility it is additionally an excellent idea at 40 to buy a house residence possession is truly essential because house values tend to rise gradually if you get a residence at age 40 with a 30-year mortgage and make all your payments your home will certainly be repaid by the time you'' re 70 and you ' ve got to retirement for that reason decreasing housing expenditures in retired life when your residence is repaid then it becomes a possession this also provides you the choice of marketing it once you get to retirement scaling down paying cash money for a brand-new residential or commercial property that'' s worth less than the worth of your house consequently giving you the additional cash to assist you spend for your retirement another advantage of owning a home or rental properties is utilize which is the mortgage if you put twenty thousand bucks down on 2 hundred fifty thousand buck house and the worth rises 10 percent after that your returns twenty 25 000 instead a 10 return on 20 000 is 2 000 as you reach half a century old lots of people are well developed in their occupation and also with any luck have actually managed to obtain a few increases over the years and also are currently making more money at this moment you ought to save around five times your annual wage so if you make sixty thousand bucks a year after that you ought to have 3 hundred thousand dollars conserved for retirement you must truly be seeing the substance passion impacts currently as a result of all that attentive savings throughout the years when you turn half a century old the irs enables you to begin making catch-up payments to your retirement accounts which implies you'' re permitted to contribute greater limits to the yearly payments so you must be taking advantage of this in order to expand your pension quicker and additionally reduce your overall tax obligation obligation an additional recommendation at this age is to remain to continue to be financial obligation cost-free live frugally and also remain to pay down your home mortgage by age 60 currently you'' re obtaining near to retirement by this age it is advised to have seven to 8 times your annual salary saved up so if you make sixty thousand bucks a year then you need to have 4 hundred and also eighty thousand dollars saved for retired life you'' re probably debt cost-free now and also truly appreciating watching your cost savings as well as investments grow at this moment it could be appealing to start dipping into your retirement cost savings however prevent doing this maintain up the study cost savings speed several individuals are still working and also earning wonderful incomes in their 60s and can truly boost their pension if they have actually fallen back in the early years hopefully by now your house is either paid off or near being paid off which should offer you peace of mind currently you ought to be eligible for social protection advantages yet you could intend to place that off as long as feasible to be able to get the optimum amount of cash you can most likely to the social safety and security web site they have a kind where you can enter your info and also it will certainly give you estimates of what to expect at various ages i'' ll placed a link to it in the show notes listed below you'' ll be able to identify at what factor it makes feeling to take it out and just how much will be added for waiting and if you'' re just starting saving for retired life as well as you'' re still reasonably young don'' t presume you will have social protection benefits when you reach your 60s or 70s many professionals debate whether they'' ll in fact suffice money to pay those benefits in the future currently for the incentive suggestion like i said at the beginning of this video having adequate cash for retirement depends mostly on your way of living cost of living and retirement in america however these days increasingly more people are choosing to retire outside the united states where the price of living is substantially much less and they can have a far better criterion of living for considerably more affordable than the us the thought of retiring abroad could seem frightening to some people and also i obtain it however i have traveled to over 58 nations and also lived around the globe as well as i can inform you that you may be fairly stunned retiring abroad is not uncommon in fact many americans pick to either retire early to stretch their retired life savings also additionally by joining the ever before growing listing of american expats who are making a decision to retire abroad several nations all over the world entice retirees by supplying retired life visas to come invest their gold years delighting in the beaches golf links as well as laid-back lifestyle in their country i directly know numerous people who have actually selected this alternative and none of them have regretted it you'' re possibly assuming oh lauren what regarding the healthcare overseas it can not be comparable to the u.s well my husband and i have actually received medical care in various countries throughout the world consisting of emergency surgical procedures from nations in southeast asia southern america mexico europe and i can tell you that each time we receive medical treatment it has actually been as great or much better than the treatment we obtained in america and also the bill was absolutely much cheaper if this sounds appealing to you after that take a couple of searching trips to some countries where you think you might wish to live and also invest a long time checking it out and also meeting some expats that live there to obtain their impact of what it'' s like to retire abroad in the nation that you'' re considering now i want to speak with you in the comments area would certainly you like me to do a video clip on retiring abroad have you been considering emigrating to retire if so where let me understand in the comments below if you'' re enjoying this video and you'' re believing lauren i am up until now behind or i haven'' t even began is it far too late after that see this video right below

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Retirement Regrets: “I Wish I Would Have…”

user 0 Comments July 11, 2023 Retire Wealthy Retirement Planning

Among the most effective methods to get ready for
retirement is to take a look at those that have already been with it. Today we'' re. discussing 3 of the most significant regrets that we listen to from people that.
have actually currently retired as well as possibly you can make use of several of those lessons to help you.
boost your retirement. hi I'' m Chad Smith here with Alison Berger and.
welcome to the Financial Proportion channel where we'' re everything about assisting.
you find the equilibrium of living today to ensure that you can have an extra satisfied.
retired life down the road when we consider is sorry for the important things that first comes.
to mind for me is the movie “” We'' re the Millers” and when the little girl'' s. sweetheart comes in with a tattoo and also he has “” no ragrets”” it'' s there and the papa.
says actually not even a single letter right, so it as well as it'' s funny that there'' s. so several recommendations to tattoos when it comes to regrets which'' s since we. consider them as being long-term and it'' s actually difficult to take off or turn.
Just one in 4 retirees goes into retirement with a comprehensive economic. Kind of interesting also because 3 out of four dream they had saved.
Mitch Anthony who it ' s one more way of overcoming this there ' s these.
choices and also assumed processes and also really they imitate workbooks so you. can'kind of analyze this process and I like to price estimate since we both. recently went to Disney we had a remarkable Disney experience Roy Disney. had a wonderful quote around this suggestion and it ' s, “It ' s not hard to choose. when you know what your values are “,” I'assume that ' s a terrific way to sum up this. concept of having an information strategy taking some time to'put it down on paper as well as comprehend. the decisions that you ' re walking through.So that second regret that we. gone through it enters into also more information within that context of the.

in-depth strategy and it ' s I desire I would certainly have had extra tax complimentary cost savings right no. one loves paying taxes so it ' s terrific if you could look back and locate ways to do. more of that yeah and especially in retirement if you ' re on a set revenue. taxes gnaw at more of those cost savings that you might have so what we see a great deal. is'that individuals come in and also they have a big account balance in their 401k and. that ' s it they sanctuary ' t saved in any various other accounts and also I assume that ' s an. easy'point to do due to the fact that it comes right out of your income automatically. deferred which is great assists you accumulate those cost savings however it doesn ' t offer you.
a great deal of flexibility so in terms of retirement a whole lot of times there ' s. surprises
and you may not be able to work as long as you had prepared so early. retirement'tax-free financial savings make a huge difference provide you a great deal.
extra flexibility so that means we intend to take a look at that our Roth IRA contributions. if you ' re eligible, back-door Roth IRA payments if you have high earnings,.
after tax obligation 401k as well as potentially also your HSA can be a wonderful retirement financial savings.
If you were simply to miss out on the best 5 days there and you started with$ 10,000.

Today we'' re. Just one in four retirees goes right into retirement with a comprehensive economic. Kind of fascinating also since 3 out of 4 desire they had conserved. If you were just to miss out on the best 5 days there and you began with$ 10,000.

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How to Rock Your Retirement with Roger Whitney

user 0 Comments May 1, 2023 Retire Wealthy Retirement Planning

the first step is have a client dream expansively of what could they do if they had it all you know would they you know if they could have everything if they could retire tomorrow or go part-time and they could have their needs their wants and their wishes what would you want if you literally couldn't fail at it this is the door roller money podcast i'm your host rob berger in today's show we're talking with roger whitney he is the retirement man literally his blog and podcast of the same name or legendary and his mission is to help people shift what they think is possible in retirement by changing how they live work and celebrate what's possible in the present boy do i need that roger is a three-time plutus award winner and author of rock retirement a simple guide to help you take control and be more optimistic about the future he's been ranked by investopedia as one of the most influential financial advisors for over five years and he created the rock retirement club which is an online community which provides tools for others to build an amazing retirement roger welcome to the show wow i always sound impressive on paper and then i open my mouth well listen we can just stop here it was great having you on the show have a good day i'm done no it's great to be here it's great to be here so i want to dive right in i got a ton of obviously retirement questions to ask you uh and i'm you know i have very much self-interest in this interview i don't care about the listeners it's all about me today always um yeah but i want to start actually with your firm agile retirement management which as i understand is you know a financial planning firm you'll correct me if i'm wrong focused on retirement i'd kind of like to know like what do you do for people and how much does it cost can we kind of start there and then i'm gonna dive into a bunch of retirement questions ah sure um so agile retirement management is our firm uh we act as project managers in someone's journey towards retirement so we take a very much a project management approach to a financial planning process hence we've borrowed a lot from the agile methodology which is how software is developed right that's why your phones have to update software all the time is because they're constantly iterating and so in the firm we act as project manager and implement agile retirement management and we can talk about what exactly that is uh we aren't accepting new clients so we're i'm sorry you are or not or not oh uh okay i can talk about that we walk life with about 80 families and not really trying to grow that beyond what it is and we charge as a traditional financial advisor so our fees range anywhere from ten to twenty thousand dollars a year and uh so let's yeah let's talk about the no new clients why will that change in the future and why did you stop at 80 well so i i've been on the street so i've been a practicing financial advisor for over 25 years and you say that when it's over 25 years so you don't have to say exactly how many years ago and i've done a lot of things for over 25 years and i went the journey so my journey professionally professionally is i worked at a major firm uh as a traditional financial advisor early in my life and then in just after 2000 transitioned to establishing an independent firm and i had two business partners and we grew that to a firm of about 15 or 16 people and just over the last four or five years i've extracted myself from what i've created in order to right size my practice so i didn't have to do all the things that you have to do when you run a big firm you know the the compliance the education the coaching the all the management responsibilities and so i right sized my practice to fit what i want for my stage of life which is i want to walk life more closely with individuals i want to have a profitable practice i want to have a location independent practice i want to have time freedom personally and so i created a firm where i can have all of those things and still actually practice my craft and so when i extracted myself from the firm we're building this firm to serve the people we work with but not just simply to scale which is generally what plan business is about always scaling and getting bigger i'm not i'm trying not to do that so do you foresee taking on new clients anytime in the foreseeable future or not can you imagine periodically yes yeah i can imagine periodically yes so then what we need to know is how folks can um perhaps approach retirement the way your firm does without obviously hiring you and you mentioned you know you see your role as a project manager which uh i like that idea although i've never really heard of it applied in the financial planning perspective so how does that work so i i call myself a classically trained financial planner so i was trained in the cfp curriculum and i taught the cfp curriculum to cfp candidates for a number of years and i equate that to how we used to develop software it was this huge bloated process where we tried to solve for everything at once to create this thing which is called a financial plan or a retirement plan and that is generally how financial planning has been done and it's all had as the hub investment management yeah that's where the money is well for a lot of reasons it's come it would you know the financial planning process was developed by financial advisors and insurance people so the natural hub is what their center of the universe is which are those products right that's not necessarily good or bad it's just how things develop and in reality with a modern retiree say you someone who's going to retire the dynamic is different than any generation in history because one you're going to live longer than any generation before you two you're going to be healthier and more active than any generation before you in the later part of life three you're likely not going to have a pension and be more responsible for your own retirement all of these things collide where the traditional financial planning approach approach generally gives you a lot of bad options right if you go through a traditional retirement planning process it does it you know it actually does net present value how much you need on the day you retire and because of the dynamics you're going to spend more you're going to live longer et cetera essentially the math doesn't add up near as often as it used to for people that had pensions and that didn't live long or active lives and so the the solutions that generally advisors offer clients are one hey you know what these numbers you're probably going to have to work longer than you think right maybe we should have you work longer to make this math work or two we need to probably inves you know take on more investment risk to try to get returns to catch up three i mean you probably should start saving more um so we can build up a bigger nest egg for when you retire or four maybe we settle for less of what you can spend during retirement so we make sure you don't run out of money so those are the four general recommendations that you get from the financial advice system or some combination of those four right you know maybe we work and to be blunt all of those choices suck right because they sacrifice your life if you work longer well that's more of your life that you don't have time freedom if you save more money there's a financial there's actually human cost to that right you means you can't take that extra vacation maybe you have to work more hours maybe you do without certain things and all of those are reasonable recommendations but there's a lot more than just simply the math when it comes to creating a retirement plan right um there's a lot of dials that people can move if you get out of the mindset of financial products and portfolios which is generally the hub and i can we can talk about a lot of examples so what we do with clients is an agile process that is based off of the you know agile methodology but there's three major pillars to a retirement plan process the first step is have a client dream expansively of what could they do if they had it all you know would they you know if they could have everything if they could retire tomorrow or go part-time and they could have their needs their wants and their wishes what would you want if you literally couldn't fail at it we try to help people think in those terms rather than sacrifice their life before they understand what's possible and then we organize our financial resources because you're gonna pay for your life from three sources of capital uh human capital which is your ability to earn income we think of that as a job but there's lots of different ways to earn money that's not full-time um what does it covered by your income can be covered by what we call social capital which is like pensions and social security and then lastly whatever isn't covered by those two has to come from your financial capital and so the the first pillar is dream expansively look at the resources you have and see if it's feasible and so my goal in a agile process is i want the first iteration to fail miserably i want their dreams to be so big of what they would what they would want if they could that they really don't have the resources and that seems counterintuitive but the reason i like to do that is because now you have all the things on the table and then you end up negotiating with yourself we all know we can't have it all but we should define what it all is so we can flush it out so there isn't something that was unsaid by say your spouse or your partner or your that was unsaid to yourself and then you end up negotiating with yourself to get to a feasible plan something that is focused on the things that you truly care about most and that you know from a long-term planning perspective is feasible as a road map and what will happen is and i've had many instances where people on paper almost are identical but one you know person a or couple a says their deal killer is i have to get out of this job that's killing me as soon as possible and so we negotiated understanding that that was what they really needed to solve for and they were willing to give up their sacrifices elsewhere i wonder if you've had clients where you go through this process they say okay we need we need to get your wants and your wishes and we might fail in the first iteration as you just said and they have trouble coming up with them oh yeah yeah they're definitely because i think that's probably again not that this interview is about me that's probably the bucket i would fall into so what do you how do you get people you know how do you break the dam so to speak and get people to figure out what in the world they want to do with their life and you're right that is a problem for some right it's and it well let's not call it a problem right and let's take you rob let's lay down you have a lay on the couch let's have a chat um it's a journey right because a lot of us are especially the people that have the most options in retirement generally are great accumulators they're used to self-sacrifice and delayed gratification every everything else and we're going to do a series on our show next year called overcoming frugality i was going to ask you about that because i listened to your show i know you're going to do it and it's a great topic so how does some someone what's it mean to overcome frugality and how does someone actually do it well what it means to overcome frugality is to realize that you can't take it with you and start to and the way you overcome it is a journey right so a good place to start is the thing you know to decrease the friction in your spend money to decrease the friction in your life right the classic example that's a great one would be mowing the lawn right when i gave up mowing the lawn it was a big deal it's like the money i could afford but it was annoying it was enough money and i sort of enjoyed it but that decreased the friction um yeah flying first class if you can another good one that seems silly when you look at the number but if it decreases the friction and enhances your life and allows you to be more well rested when you're there etc so that's a great place to start so i think really rob it's a journey and a lot of times why we don't make that journey is we don't have a framework to know whether it's really being flitted away if i fly first class just as an example that's a lot of money and if i do that consistently that could really you know without a context we think that could hurt us i can't afford to spend this money because i might need it when i'm 90.

and without a framework to understand that the decision you make today that you'll still be okay later on absent that framework you're likely going to sacrifice because you want to make sure you're okay tomorrow so let's talk about the framework what does that look like and how can someone how can someone build the framework that you envision on their own well that's you know do they read your book what resources would they use so what's the framework look like because because ultimately that is the question right how much money can i spend today how much money can i spend this year without worrying about when i turn 90.

so what's that framework look like for you and how can someone whether it's books obviously listen to your podcast but what resources are available to folks so that they could take your vision of the framework and implement it well i think the podcast is where we that's my laboratory for talking about it and talking through the different elements um the rock retirement club is meant to teach people we have a master class that walks you in an agile way through building what we call your plan of record right so okay peer one is knowing that your roadmap is feasible right and but having a feasible plan isn't enough right because it's feasible for me to swim across you know a two and a half mile lake but what happens if a storm comes in or what happens if the current shift then the second period you have to make it resilient if i'm going to embark on this journey i have to put some guard rails in place so i don't get thrown off course or swamped with the storm whether it's a life event or the markets or inflation and then you get to optimization which is all the bling of financial planning right all the stuff that people talk about most so those are the three pillars and so if you get a feasible plan and then you make it resilient we call that a plan of record which is our working project model this is the project that we're on and that's going to include you know and that's what we teach in the class when we talk about on the show the feasible part of it is mainly financial planning software like in the club we have club members get new retirement plus calculator which is one of the best public-facing calculators so you get the software approach and then when you make it resilient you have to you have to actually go to spreadsheets you have to create your roadmap of how i'm going to pay for life early in retirement so what we do you know a good feasible plan that is resilient is once you know the model say you're fine long term we we recommend or suggest that people retire having the first five years of old life pre-funded so they know exactly just a savings account somewhere a cash account um yeah you can get you know that's the optimization stage how do you eke out yield but the key is you want to have that money set aside to essentially be your payroll account to create your paycheck for yourself when you're not working and that we have spreadsheet templates that we have there and what's interesting about this rob to me is and this is why we think it's a project not a plan is you're always iterating because when rob has his plan of record and he starts iterating on that the problem is his plan is going to change a million times because rob and his wife or partner i don't know if you have a wife a partner they're going to change their mind and you're going to pivot she does occasionally from time to time she's actually in the other room so i should probably keep my voice down and and so using a project man once you have this plan of record that's really setting up the project then then the key there rob is what i call creating the wham really what people need is the wham and that's what we try to deliver in an agile way and that is basically every time you're reviewing your plan of record that you know is feasible and resilient you're always asking yourself whether it's verbally not well what do i do next or you know what should i focus on what do i do next to improve the plan because of an opportunity or shore up the plan by addressing a risk so people want to know the what and then they want to okay once you identify the what and one thing about that is it's very you know if you think of levers that you can pull in your life it's in because everybody thinks so tactical we can focus a lot of our energy on things that have very little impact in our life right and in planning that's generally where most people stay because they read an article about roth conversions or about you know irma with medicare and they spend all this time thinking about it when they could have a very easy task over here that could have a huge impact on their life that they just totally ignore because it's not very sexy so we want to know what do we focus on and that's what we help people figure out and then how do i do it you know the actual how and then some assistance and accountability to actually get that little step done which creates momentum because you've completed it which leads you back to what do i do next so an agile approach to planning never ends because it's always now what do i do and it's all these little decisions to try to improve the plan and i think that's where you need to live and this is all in the rock retirement uh club course that folks can take this is what we teach them yeah but i mean that your your firm doesn't take new clients but but folks can sign up for the class you're describing is that right yeah so the the club is structured around gives you the education of how to put this in place and then it gives you tools to actually do those things and then it gives you the community of people that are all doing them together okay um and what you said one of the tools is new retirement right that's one that you like which i've used for a long time i know steve steven the founder very well yeah he's a good guy um yeah uh and uh okay so that's good you mentioned and i and i plan to ask you about this in terms of prioritization because you know when you're planning for retirement in retirement there's a thousand little things you could be thinking about but as you pointed out you really at least should start with the low-hanging fruit so to speak right um the things that are going to make a big difference that you know might be easy to implement uh my question for you then is what are some of those things what are some of those those priorities that you see folks sort of ignoring that they probably should focus on first it's a good it's a good question and i'm going to start by saying a lot of this process is you want to think strategy tactics not tactic strategy right you want to think from a strategic level and let that dictate the strategy the tactical execution of things and most people approach it an incorrect way um probably one of the biggest things if you're within five years of retirement is starting to address boundaries around work you know bound you know because what happens as you get closer to retirement is you're used to being on a career track and pleasing your boss and the superiors in the company and working for whether it's the recognition or the promotion or the raise or whatever else that's a cycle a lot of us have been on for decades and we can easily sacrifice our life to it because we care so deeply about our teams and what we're doing right when you're close to retirement one thing a lot of people i don't have time i don't have time to think about what i want afterwards i'm too busy i'm traveling whatever else is to start realizing hey you're not on this career advancement treadmill anymore and just you know so i think one low-hanging fruit is start to create some boundaries so you can capture some time to start thinking about the transition that you're getting ready to go to right so i think that's a big thing to work on i think another one is especially with if you're within five years of retiring have you ever been to the gym and have seen like those dudes that all they do is upper body they're just huge walking around i mean they're really developed you know from the waist up that is how a lot of us are when we're close to retirement because we're so good at accumulating you know the game has been work your butt off save reinvest every dollar embrace investment risk and we've done that for decades to prepare for retirement and then we've had the joy of especially our generation the joy of updating our net worth statement seeing those balances go up saying this is how much i saved this year all that affirmation cycle that comes from all that saving so we're like really strong accumulators well when you get close to retirement that changes you're decumulating you're you're switching from a decumulation or from a from a sewing to a reaping standpoint and so that's like all your legs now you're so big up here and you're supposed to run a marathon and you've never developed those muscles because so think of what happens and so that transition from accumulation mindset to decumulation mindset and what that actually means is so i think low-hanging fruit that if you understand that it makes everything else a lot easier yeah that was the biggest shock to me i i retired about four years ago now i ended up going back and doing more work and i have a side business so you know i'm not really spending my nest egg right now but when i sold part of my business i thought okay that's it i'm gonna be spending my nest egg and psychologically it's a it's a very very difficult thing to do uh for me just like you've described and at one point it was because you know the fear of running out of money but after a while you kind of get used to that at least i have and that's not really the fear anymore uh although it helps when the market's doing well so yeah you know if the market crashes maybe that fear will come back but it was also kind of like you described i just like doing barbell curls i like accumulating money i don't really do that many barbell curls but you know you like accumulating money it's fun to invest it the thought of watching your balance go down who likes that so how do you overcome that well that's why it has to be a process and not a plan yeah so i have a question for you um when you left work did you know you're going to be doing part-time work or building a business no uh i mean i thought that i might some point down the road um i had a non-compete so i couldn't really do much for two years in terms of my own business i ended up doing some work though it fell into my lap you know how this happens like three weeks after i sell my business i get a call from forbes and they they want me to do some things for them and i was allowed to do that and that was enough to sustain us financially but it was totally unexpected and then and then eventually i started my websites back up and i'm doing this podcast right you know and uh a few other i got a youtube channel and so we live off of that income now and so i've kind of i've sort of accidentally unretired but i'm guessing you probably have more control of your time and time freedom yeah i mean and i wouldn't do it otherwise if i had to go to an office eight hours a day i wouldn't be doing this and in surveying our audience over the years probably one of the biggest insights i i've had is asking them what retirement actually means because i use the word just simply because that's the word that's used yeah but my understanding is most people don't want to not do anything yeah they just want to slow down and have some control of their time yeah right absolutely absolutely and i think you know low-hanging fruit from uh if you understand this it changes it makes it much more multi-dimensional than the classical way is retirement is framed in planning as a light switch you're working you're not most people don't want that so if you can think more multi-dimensionally and think of it like a dimmer switch where you can get out of the rat race take a breath most people and this is true in my private practice as well are doing something because they enjoy it and they're earning some money from it and it's the pace of life that's really the difference not not working yeah absolutely absolutely well let me let me drop down to some tactics i guess this would qualify as tactics uh at some point you can do all the planning to talk about all sort of the psychological issues uh but at some point you know a retiree needs to know okay how much can i spend in the first year of retirement what's the number and it may be a range i suppose but i don't know but how do you think through that question and and how do you you know how do you advise folks uh in trying to answer that and this is where i think planning even even a professional planner you get beyond the charts and the graphs to the okay exactly how does this work and what do i do it starts to get a lot lower resolution um and and so the way that i'll just tell you how we do it this is what the course digits do is once we know it's feasible we're making it resilient we want someone to go into retirement with a contingency fund and then an income floor which will be anywhere from pa pre-paying for life two to five years out and then so if you have a million dollars let's say you're gonna have your normal contingency emergency fund and let's say after part-time work in in pension or social security you need a hundred thousand dollars from your portfolio these numbers aren't going to work right but you get the point well then that means if you need a hundred thousand dollars a year for the next five years you need a half million dollars is basically pre-paying your consumption so that million dollars half of that is going to go to consuming and then you have a half million dollars left and that goes to upside portfolio and so i call it a pie cake first lay we have multiple asset allocations we have contingency we have the income floor which pays for your life early and then we have the upside portfolio that will help pay for future life because you have too big risk when you're allocating assets in retirement from a financial standpoint you have near term you have sequence of return markets just being bad right up front and long term you have inflation so those are the two things and we're on a teeter-totter trying to balance those two so to your question when once we identify how much they need in years one through four or five say we identify then we identify what accounts are we going to get that money from yeah and there's some tax planning in there and then now that we know the accounts that we're going to get the money from we set ups we sequester or segregate that money and we call that a payroll reserve to pay for what years one through five so psychologically it's like a bucket system so if someone said to you okay that sounds good i'm gonna take my five years of of income need whatever that number is and i'm going to invest it in say i don't know 50 index funds stock index funds and 50 bond index funds would you say no no no slow down it's got to be an all in cash uh how would you think through investing that five year i'll call it a bucket it almost to me sounds like the bucket strategy but slice and pie or that whatever you want to call it how would you invest that five years and so so to answer what is that money for that money you know when you and this is a basically a pension management way of doing things an asset liability matching so if rob needs a hundred thousand dollars in three years that's really a liability on your balance sheet you owe a hundred thousand dollars in three years and so we're matching your assets to that liability your spending is a liability so but to answer your question cash you know in ideal world you would buy a inflation-adjusted security that matured right before you needed the money right so you neutralize inflation if you need a hundred thousand three years from now you take a hundred thousand dollars you buy a inflation-adjusted security that matures right before you need it now you've pre-paid it in reality we use high-yield money markets we use cds we'll look at three three year fixed annuities you can look at tips you can look at individual bonds that mature on a certain date it's really not the environment for that but we've had periods of time where we'll actually buy bonds that mature right before they need the money so how how would you respond to someone who said that that's that's gonna end up creating a portfolio that's got too much in short-term you know fixed income and that it's going to really hurt you you don't take too much risk but maybe the argument that that's too conservative how would you respond to that too much relative to what right well relative to a portfolio that and i think in terms of percentages when i do asset allocation i don't think in terms of years of expenses um that you'd be better off coming up with an asset allocation based on percentages 60 40 70 30 whatever and only taking out and from that in terms of cash what you need say in a given year uh so you're still going to have probably years two through five and maybe even longer depending on how much money you have in some form of fixed income right uh but it's going to be allocated based on percentages uh rather than pulling out from the allocation five years of expenses i i think and you're going to have ups and downs if the stock market crashes though that's okay because you'll sell fixed income to buy stocks which is exactly what we want to do anyway that would be sort of the alternative in my mind and that and that that approach is essentially taking asset allocation and investment management uh from an accumulation mindset and trying to fit in the decumulation model which is where we come up with four percent rule and things like that now you can accomplish it that way right um i think a lot of this is accounting because one is what are we trying to solve for we have to understand that and in retirement unlike accumulation we're not trying to solve for optimization of returns relative to risk that we're taking which is what efficient market theory says right or modern portfolio we're trying to minimize risk for a given level potential return and in modern portfolio theory inflows was never part of never in the universe of that model that was about accumulating assets in retirement what we're trying to solve for is life outcomes right so i'm not against a systematic withdrawal model in the way you speak but first you have to know feasible because in when you create a feasible plan we put people into three buckets they're either underfunded for the spending they want they're constrained or they're over funded and it's important to understand that because if you're over funded meaning you have much more in assets than you have in spending liabilities you can do a systematic withdrawal because you have so much excess you can absorb a period of time when stocks and bonds go down because you have so much excess it's okay to do a systematic but the more you get into the constrained category which is where most people are the more you better secure the outcomes and what ends up happening rob when you go through this exercise actually when you have contingency floor upside you end up getting to a fairly balanced model because the upside can have more equities because essentially it's a time horizon structure you know you wouldn't put money into something for four if you needed the money in four years you're probably not going to put 60 of it in stocks yeah so if some so folks listening and they're thinking well am i underfunded or over funded or constrained i mean do you see the four percent rule as at least a rough starting place to think about that issue or how do you how do you help clients determine whether they're underfunded you know or over funded you build a household balance sheet and understand the liabilities that you have from a spending standpoint um that's what we that's what the class does you get to a that's how you determine your feasibility is through building your household balance sheet to see how overfunded or underfunded you are and once you know that that will help to determine the toolbox for how you make it resilient so as an example if somebody is highly constrained the knee jerk would be well i need to take more investment risk to get less constrained right yeah that's actually the last thing you want to do because you can't afford the risk of taking more investment risk it will just exacerbate an already tight situation so somebody that's highly constrained is going to have a more safety first approach which wade fowls talks about because there's this there's this dial from safety first on one extreme to systematic withdrawal on the other extreme where you are at between those two extremes is going to be dependent one on your personality profile which people are just now developing things to solve for and it's also going to be determined by how funded you how you know how funded you are yeah but i mean doesn't it at the end of the day it still comes down to numbers right so like i'm guessing if someone said i got a million bucks i'm going to spend 100 000 the first year and that's going to be my income floor i'm going to guess what i don't care what tools you're probably not funded they're probably underfunded right if they say i want to take 40 grand out or maybe even 50 grand well okay it's probably roughly in the ballpark i suppose um for your course i know you mentioned new retirement so new retirement comes up with numbers uh but in order to come up with those numbers the user of the tool right has to make an assumption about the returns and and future inflation so i know i'm getting into the weeds and we don't have to go down too far into the down the rabbit hole i suppose but those two things are a big concern for people the returns are a concern because uh stocks at all-time highs more or less and bonds are at all-time highs meaning the yields are low uh although the 10-year has been rising today who knows um and people are scared of inflation so how do you i mean again folks can take your class obviously to get into the nitty-gritty but just how do you do you think we're in sort of the chinese curse may you live in interesting times are we living in interesting times right now we always are that's sort of the the crux of that that saying right um that's a lot rob so first off i think the one reason that's why an agile approach is more important than ever yeah so one story i tell people is that hey and i'm gonna use a you know i'm gonna say trailer and that's not a bad thing but most people don't live in a trailer i tell people and very wealthy people like look we can do everything right and you may still have to live in a trailer it is and it's the truth because we the the hard part with this type of planning is you cannot figure it out it is unknowable it's unknowable inflation's going to be it's unknowable what returns are going to be it's unknowable what your life is going to be that's just as fluid as all these other things we're talking about life events happening and so forth and given that you better have a very well thought out process to make lots of little conversations so you can identify risks and opportunities early enough to take little actions rather than big actions that is the best we have that's one reason why we've adopted an agile methodology so to answer your question on inflation and returns in the class we have new retirement calculator which is more of a traditional forward-looking calculator which has return assumptions in the class when we build a household balance sheet we have no return assumptions we we actually bring back to net present value everything today so if we're talking about spending what rob and his wife are going to spend when they're 85 and let's call it 180 000 inflation adjusted we discount that back to make it a present value as of today so we can look at your we know what your assets are right we know what your assets are you bring back present value all the cash flows for social security and pension and we do the same thing for the spending so we can compare them more apples to apples um that is much more conservative and what ends up happening than traditional software because what ends up happening if you forecast forward which is the traditional sense and i do that with monte carlo scenarios and etc what ends up happening is especially with monte carlo the scenarios though the time frame is so long the possible outcomes just spread yeah they're crazy yeah so now when you bring everything back down you make you make zero prediction on investment returns and you're dealing essentially with your inflation assumption and your discount rate okay right which are still focused i want to find your class they go to rockretirementclub.com rockretimer.comclub.com is where the course and the community all of that is talked about okay and how long does the course like if someone wants to go through the course how long does it take or how long does it last yeah it's right it's nine modules and it's structured as an agile project so it's little baby steps starting from the first remember the yellow brick road when you start on the first step you have to go back you start and you iterate people do it at their own pace okay that's terrific i'm gonna check it out myself uh because it may be uh perfect for me um so folks that want to follow you follow your work your writing where should they where should they go best place to find me is in podcasts on the retirement answer man show that's where we do everything okay i've been listening to that i'm it's funny i'm not a big podcast person uh but i started listening to your show and enjoy it immensely uh you're doing a great job it's it's uh it's really helping a lot of people thank you uh it's my lab i don't have any uh illusions that i haven't figured out i'm trying to be a very organized thinker about things yeah absolutely well roger thanks for tolerating my my persistent tactical questions thank you for coming on the show you bet buddy have a great holiday you

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Retirement Regrets: “I Wish I Would Have…”

user 0 Comments April 13, 2023 Retire Wealthy Retirement Planning

Among the best methods to plan for
retired life is to consider those that have actually currently been via it. So today we'' re. speaking regarding 3 of the biggest remorses that we hear from people that.
have currently retired and also possibly you can use several of those lessons to assist you.
boost your retirement. hi I'' m Chad Smith right here with Alison Berger and also.
welcome to the Financial Proportion network where we'' re all regarding helping.
you locate the equilibrium of living today to ensure that you can have a much more fulfilled.
retirement down the road when we believe concerning is sorry for things that initially comes.
to mind for me is the film “” We'' re the Millers” as well as when the little girl'' s. sweetheart can be found in with a tattoo as well as he has “” no ragrets”” it'' s there and also the papa.
states actually not even a single letter right, so it and it'' s amusing that there'' s. so many referrals to tattoos when it comes to regrets which'' s due to the fact that we. consider them as being long-term and it'' s actually upsetting off or transform.
Only one in 4 senior citizens goes into retired life with an in-depth economic.
residence maintenance points like that that might otherwise gnaw at those.
financial savings that you have what I such as about this is it requires you to believe via. your values as well as what you ' re trying to live retirement for that ' s a big part of. a few books that we like to suggest a clients one “Your Retirement Pursuit” which will stroll through a truly. in-depth procedure and also generating a” plan as well as a detailed strategy to specifying. your purpose as well as your values and after that also “The New Retirementality” by. Mitch Anthony that it ' s another way of resolving this there ' s these.
decisions and assumed procedures as well as actually they imitate workbooks so you. can'sort of analyze this procedure and also I like to price estimate due to the fact that we both. lately went to Disney we had a fantastic Disney experience Roy Disney. had a great quote around this concept as well as it ' s, “It ' s not hard to choose. when you know what your worths are “,” I'believe that ' s a terrific means to summarize this. concept of having a detail plan taking time to'place it down on paper as well as comprehend. the choices that you ' re walking through.So that 2nd regret that we. gone through it enters into a lot more information within that context of the.

comprehensive strategy as well as it ' s I desire I would have had much more tax obligation cost-free savings right no. one loves paying tax obligations so it ' s fantastic if you could recall and also locate ways to do. even more of that yeah and specifically in retirement if you ' re on a set income. taxes consume away at more of those financial savings that you may have so what we see a whole lot. is'that individuals can be found in and also they have a large account equilibrium in their 401k as well as. that ' s it they place ' t saved in any kind of other accounts and also I think that ' s an. very easy'thing to do since it comes right out of your wage instantly. delayed which is terrific helps you accumulate those cost savings but it doesn ' t provide you.
a great deal of adaptability so in terms of retired life a whole lot of times there ' s. shocks
and you could not have the ability to function as long as you had planned so early. retired life'tax-free savings make a significant difference offer you a great deal.
extra adaptability to ensure that means we intend to take a look at that our Roth individual retirement account payments. if you ' re eligible, back-door Roth individual retirement account contributions if you have high income,.
after tax obligation 401k and potentially also your HSA can be a wonderful retirement financial savings.
vehicle.And if you want to discover more regarding those we have a longer podcast. episode that we did associated to this and it ' s in connected in the description. below where you can learn just how to apply those so the third one is one. that you obtain knowledge as you invest via the years right if you have a. long spending life time and you ' re currently retired you have that assurance to. recall and also say I wouldn ' t have stressed so much concerning. market drops investing in the securities market is gon na raise your rate of. If you were simply to miss the best 5 days there and you began with$ 10,000.

Today we'' re. Only one in 4 senior citizens goes right into retirement with a comprehensive monetary. If you were just to miss out on the ideal 5 days there and also you began with$ 10,000.

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user 0 Comments February 1, 2023 Retire Wealthy Tips for Retiree's

Hey everybody welcome in on this snowy snowy Wednesday wherever you're joining us from let us know where you joining us from today hey everybody welcome in to the investing in real estate show today we're gonna have some fun talking about how to retire at 40 how to retire by 40 Sean says hello from Brooklyn New York how much snow are you getting out there Sean we get this massive nor'easter once again and once again so the kids are off school just I'm over it I am over it I know there's gonna be people are there I'm right in here and say they're there joining us from there out in California and they're living living large yeah Aaron is running us from Miami Florida there you go Wong from Miami thanks so much rub it in rub it in rub it in everybody so we're gonna get this show started in just about three minutes South Africa Indianapolis Moses welcome Pottstown you're getting hit with some snow right now Matthew Bishop Lakeland Florida hey Matthew yeah I guess California you guys are getting hit with some crazy stuff out there today too huh yeah they cancelled school last night I don't know I you know growing up I don't ever remember them canceling school like the night before did you guys ever have that growing up it was like he'd wake up and he would sit and listen to the radio and you would wait you know I was in Pennsylvania I would be all be waiting to listen for our school if it was canceled I'd be in one-hour delay a two-hour delay and you were hoping that they would cancel it but I never had the night before they send out a text message letting you know that hey your school was cancelled and that was never the case for me never never did you do all right we're gonna get started in just a moment here it's gonna pull up this today we're gonna talk about how to retire by 40 and we'll start here in just about one minute one minute one minute Jerome aramid says hey a guy you talked to me more than two weeks you never came back to me you can take care of this later I know you're alive nobody emailed me the first appointment Jerome who did you talk to on my team let me know and we've got some people in from our team right here in the chat thread as well we can Mike you know a lot of times people will send follow-up emails it goes to your spam folder sometimes people when they initially signup for phone calls with our team they put in the wrong phone number and then they later writes it well I put the wrong phone number in and so our team will be calling and they can't get ahold of you so I apologize for that and Rudy Rudy please check your spam folder please please please because our team is very good about follow-up and we have hundreds of clients around the world so I apologize for that you know because if someone sends you a PDF it might go right to your spam folder and then you're like oh I never emailed me just check your junk folder and who are you talking to please let us know we'll make sure we get you all squared away we have a waiting list for people to get on the phone with us for like a few weeks so I don't ever want anyone to feel like we don't get proper follow-up from our team that's very important so I've got our team right now who is in our chat thread we'll go through and make sure that we get you all taken care of so I apologize for that all right so we are live it is it is a.m.

And we're gonna kick off the show after the show I'm gonna do you know to talk about this article talk about how to retire at 40 and then after the show we'll kind of open it up for a few minutes of Q&A if that works for all of you and we'll just kind of answer some real estate questions some of the things you're struggling with you're hoping to achieve and we'll talk we'll do that all right Forrest wants to knows are still owners software coming out for Morrison fest yes indeed in fact we've been working on it for for since like August it's all custom it's been a lot of tweaking we want it to just be perfect Peter Cook says I've had very good follow-up thank you Peter appreciate it and James Frederico o1r from our team is right in here he says hey Jerome I got you all reach back out to you and take care of you good good good all right so we're gonna get started here and we're going to talk about this in a second so first so again at the end of the show we'll take some QA and we'll do that as well let me just get this all dialed in we're recording we got the audio up and running is everything sound ok guys you guys can hear me give me a thumbs up you guys are all good Brandon yes absolutely because some of those beat class properties you're asking about the verb method absolutely because you know buying those 60 70 thousand dollar homes those the banks love they're able to do you know easy refinances on those because there's easy comps to pull in the neighborhood because there's retail sales so I would stay away from like the 3040 thousand dollar stuff if you want to really do like a solid brr-brr method stuff if that's what you're looking for all right sounds good alright so we're gonna get started all right all right and let's get this show started all right today on today's show we're talking about how to retire by 40 a news article from the mainstream media it's kind of total garbage that's today's show let's dive into it hey everyone I'm Clayton Morris longtime real estate investor founder of Morris invest if you're new to the channel thank you so much for joining us and subscribing I hope that you're a subscriber because there's where we talk about passive income building legacy wealth for you and your family that's the goal right and the vehicle that we use is buy and hold real estate but I don't care about the real estate right I don't care about the four walls and a roof I just bought 15 houses this week that we're about to rehab okay I don't care what they look like because once we get them it doesn't matter what I'm buying as a tax shelter and that's what you should be focusing on buying a tax shelter that's what this show is all about on today's show I want to talk about how to retire by 40 and I want to preface this by saying that I got this from an email from a listener a viewer of our show who is getting involved in real estate investing Jesse Daley sent me this email and he said hey Clayton I hope you're doing well man I thought you'd find this article interesting especially how the writer literally doesn't mention anything about investing in real estate there's only a one quick mention of a condo adding to net worth and nothing else in this article I'm so happy that your podcast teaches people how to truly invest properly and retire by the age of 40 this they should have interviewed you for this article so thank you Jesse I promised I would give you a shout out here on the show and I want to go into this article so again I have lampooned some of these CNNMoney articles over the past few years have done shows about these things because I just find them ridiculous I find them ridiculous that they're telling people to invest in their 401k and then that's the way that you build retirement that's the way that you're able to retire by 40 years old I mean how many people are you know you just like a show of hands you're listening right now how many of you think you could actually retire by 40 years old just with your 401k of course you can it's ridiculous the average 401k retirement in this country guess what according to Time magazine is 90 thousand dollars can you retire on that no way so I want to go through this article because it's a lot of fun and Jesse sent it to me so these are tips from CNN money on how to retire by forty three proven tips three proven tips so let's go Chris reading isn't your average retiree he said goodbye to his working years at 37 and is now financially independent living his life on his own terms that's great now he had 4500 dollars in debt and when he started working he got through all of that he finally found a well-paying job working cyber security took out a mortgage bought a condo and financed a BMW okay alright took out a mortgage on a home bought a condo and financed a BMW on our way to success but then he started to wonder is this all there is he finally said I can't do this for 40 years in his late 20s he started searching for alternatives and he read the book your money your life by Joe da Menendez and Vicki Robin and he said look there's other ways of becoming financially independent so he then felt that he had enough to live the rest of his life on his savings and investments without having to work again it took two more years of showing up the cubicle for him to be sure than a 37 he finally walked away so what did he do okay here were his strategies here where his strategies for becoming financially independent and retiring at 40 years old number one save more save more okay so his strategy according to the CNN Money article is cut he cut back on going out to dinner and he cut back on buying lattes so he just started saving more really so let me get this straight that's the way that you can sustain yourself for the rest of your life by retiring at 40 years old from your job it's just having enough in the bank you think that you're gonna have if the average 401k retirement is ninety thousand dollars can you really live the lifestyle that you want so now you're cutting back on dinners in order to save some money you're not buying coffee so what Natalie and I've talked about here on the show repeatedly is the idea of not having to shrink your lifestyle why not find out what your freedom number is using real estate find out what your freedom number is and actually have enough passive income every month coming in the cash flows you're creating a tax shelter for yourself and enabling you to live the life that you want so you can't go buy a latte I find that ridiculous you know David Bach wrote about that in his book the automatic millionaire a years ago and look if you're $40,000 in debt yes maybe not buying a five-dollar coffee every day is probably not a smart strategy you know also if you're a smoker you know spending ten bucks a day on cigarettes or whatever it's probably you know not a smart strategy if you want to claw your way out of debt I get that part of it but as a way of sustaining yourself and retiring at forty years old just saving more savers are losers that money in a bank account is doing nothing for you what about buying performing assets that are actually producing cash flow I mean come on so when he says look where people get into trouble with savings that they think they have to use reusable toilet paper and eat chicken broth but real basically you just you'll never spend zero dollars find a level of living that you're come with and work on earning more without increasing your expenses so he's just saying earn more save more cut out lattes and you can retire at 40 I don't buy that for a second number to earn more okay that's his second tip earn more great so let's save more and earn more again a paycheck job the tax code is written for wealthy people the tax code is written for entrepreneurs who own businesses who own real estate that's what the tax code is written for it's not written for a w-2 employee so earn more so what he says is your actual jobs only part of your work in order to earn the kind of money where you can live on only half or less of your salary so take that extra money socket away that's what he's saying so work harder right work for a paycheck get taxed as like in the highest tax bracket by the federal government right because we know that paycheck employees under the new tax code or hurt the worst he says this career-boosting work can include earning advanced degrees oh that's great so his other bit of advice on this is go out and spend a hundred thousand dollars on getting an advanced degree so go get your master's degree that's only what a hundred thousand dollars that's only a hundred thousand dollars right just go get it a master's degree so that's smart so save more earn more by spending more on getting an advanced degree or certifications and then that way you'll have people who will look at you more favorably in the office and be able to elevate you higher that's great so it's important understand the weak areas and he says look I finding mentors okay that's good yes definitely finding mentors as a very smart move finding mentors who can help propel you and then number three he says invest more so he says the most powerful mechanism for investment right now it's built into their job it's the 401k invest in your 401 K and a two or three percent return contributing at the level where you get the employer match is a must and that's your biggest benefit and that's how you can retire by 40 that's the article unbelievable so okay ridiculous right that's how you could retire at 40 no no that's not how you can retire it 40 and that's not how you could live comfortably and live the life that you want and be able to produce legacy wealth for your family for the rest of your life so he's now retired he's living off of savings but he's got no assets that are actually performing for him for the rest of his life he's got a V BMW that he bought financed and he has a mortgage on a condo that he lives in he has no performing assets that is not financial intelligence any way you slice it wouldn't it have made more sense instead of saving that money while he was working for that cybersecurity company to take that money and invest it in real estate by a performing asset that cash flows that's how you control and move your family forward that's how you can build true legacy wealth for you and your family but actually taking money and buying a BMW buying a liability remember all you need to remember is if you're buying liabilities a liability is something that does not produce cashflow now if he bought that BMW and used it as an uber driver that was producing cash flow that's a different scenario or if he rented out that BMW that's a different scenario but I love these I love these articles and again this is all sort of couched around the idea of the mainstream media right the mainstream media wants you to believe that a paycheck employer job is the way to go that getting a 401 K having their company sort of automatically do it for you because you're too dumb to do it yourself have them handle it have them streamline it and that's how you that's how you have a strong safety net we've been trained to believe that being secure is having a paycheck job you know again I come back to the I keep seeing this commercial and I'm sure so many of you have seen this commercial over the past few weeks I saw it first during the World Series and they continue to run this stupid thing where it shows a couple you know they're in their late 60's and they're sitting there with a how it's a Merrill Lynch advisor and the Merrill Lynch adviser says well it looks like the plan worked and you're gonna be able to have that retirement you wanted and I looked at you look on the iPad app that they're handing to the couple and he's like honey we did it we can do it we can live that life we wanted retirement and it shows that their income is enough they're gonna have about seventy thousand dollars to work with like if you look at if you actually look at the numbers on that screen seventy thousand dollars so now they're almost at retirement and then the next clip it shows them in a boat with their granddaughter right there sailing off into the sunset like some small little boat with their granddaughter and the little girl says aye aye captain you know and she she's driving the boat so this is their retirement they finally did it right they had a wait till they're 70 to buy a boat and to be able to sleep in and spend a little bit of time with her grandkids be all because they had their month their money managed by a financial advisor that was taken out big fees and investing in a stock market and not investing in real estate and cash flowing assets so there you go that's my frustration there you go that's my my little my little two cents my little rant about these types of mainstream media articles and when you see them on TV just roll your eyes think about it for a second saving more earning more get an advanced degree spend $100,000 on a master's degree and then use a 401k that's how you're able to retire at 40 that is total garbage that is total garbage unless maybe the guy wants to go live in like Thailand by himself with no kids and he wants to live like in a hut somewhere for the rest of his life and he doesn't care about actually having any income or cash to be able to buy anything or any food or live the life that he wants I find it to be total garbage I'd love to hear your comments and your reactions to this please send them to us and I really thank you so much so that's gonna do it for that and thank you so much for subscribing to the show I really appreciate it this is the investing in real estate show you can please subscribe share it with your friends and and you know please go out there take action become a real estate investor because I believe it's the number one way to build wealth we'll see you next time everyone all right now with that that's the show so anyone who wanted to get just the shortened version of that but hey now we're gonna open up this agree to some Q&A here in the show we got so much so I saw so many chat threads coming through here asking questions alright so fire them up here alright alright Joel says I've also had an email a few times hit reschedule my call but no response and said ok Joel no worries we'll get you all straightened out I apologize like if people miss their phone appointments cuz like I said we Deanna with our team we have like calls are booked out I think about two weeks and so if we call them like goes to voicemail and then we're trying to reschedule it so we really try to make sure we can get on the get on the same get on the same on the same page Jinger I'm sorry again what's going on Jinger we'll get to the bottom of this so I'm gonna make a list of anyone who didn't get a call back so I apologize alright so can you guys tell me Arum says Glen and Nicole from your team have been great awesome ok so we will dial some of the stuff in ginger and I'm sorry I will get some of these people on your on your team to make sure we get it all taken care of thank you guys let's see all right you know I'm glad you're not upset no I just you know we if sometimes emails get back and forth and we're trying to make sure that everyone gets taken care of okay are Tuffle get you back on your property okay let's the ad tapper says what do you think about joint ventures they have the money I do appraisals marketing and brother does the renovations hey jayvees are great right you need to build a great team for real estate investing that's very important you have to have a great team to do real estate investing well Kelly just uh Kelly Cheatham says I want to hear more about your program great just booked a call with our team Kelly and Morris invest comm we're doing some great things and I'm really excited about some of the new properties that that we purchased that we're about to do we've already designed our contractors to dive in and start rehabbing see Charlie 18 says our new Hara Sean wants to know one of the price of the new house is being built our new houses the three-bedroom two-bathroom right around seventy seventy thousand okay Charlie eighteen I'm gonna answer this question how does it LLC save you on your taxes on your rental how does it LLC save you taxes on your rental properties a lot of the stuff I've been reading times about pass-through income I never thought I thought that that was taxed the same way as a sole proprietor yes however remember that under the new tax law as a pass-through entity as a pastor entity you're now getting an additional 20% deduction 20% and remember when you have your your properties in an LLC you're being taxed as a business and you're able then to depreciate spread that money over all those other your w-2 income and those other things so I've just an all series of videos on understanding tax shelters and remember what you're buying as a tax shelter so forget about buying real estate you know I have talked about Lane I like for repairs so repairs add to your tax shelter helps mitigate your overall cash flow because remember what you're buying in the beginning in a 3-stage is a real estate investing right buy own and cashflow what you're buying in the beginning you're adding to your net worth so I don't care about the cashflow necessarily until years later but you're buying and adding to your net worth you're creating a tax shelter for yourself you're able to mitigate your w2 income you're able to offset all of those things so I would love to hear what you guys thought about today's show and the article please let me know I'd love to hear you which you you know what you thought about that Kelly are speaking of the computer program Oh Kelly yeah we're building a personal owner portal for our clients that the software I mean it's just it's and make it much easier so that we don't like our team doesn't have to send out Purchase Agreements it'll be right there because we have so many clients it like we'll have like three or four clients and want the same house and so a little like yeah give you a purchase agreement and it's kind of like first-come first-serve and then our team has to send out a purchase agreement wait till it's signed and all that BS so this will make it very easy for them to be able to click right on it and then open up DocuSign and be able to do it and pretty great Ryan Millie says okay what are the mechanics after purchasing one property to purchase another property or two and repeat the process over and over again where does that money come from well ideally it could come from a bank right or it could come from private money it could come from you know we we talked about a company that we work with called fund and grow less you know if you go to our if you go to our website Morris and vest com slash funding you don't pay them any money until they actually if they get you money zero percent Interest but why would look at okay so let's just take the mechanics of that to answer your question so I would say you know buying like a sixty seventy thousand dollar rental property and then leveraging that right so maybe putting or or if you have the cash to do that right that ideally if you could come out of the gate you have the cash to purchase your first one free and clear that's more of a B Class play you know that's sort of B minus like 60 65 70 K place play that's kind of maybe you know it's transitioning up to sort of an a-class neighborhood and it you know coud appraised in a few years at 80 or 75 that's the play right so buying that if you could buy that with cash right and then refinancing a pull some equity back out of that and then be able to roll that next amount of cash the bank just gave you into your next property into your second property and then into your third property a buddy of mine here in New Jersey started and did that on an eighty thousand dollar property he now has over two thousand units here our DNA and money when he started and he bought that first property that first property allowed him the snowball and all of these other properties and identity jjh yeah unfortunately JJ was said you purchase second property in Indy in November we'll hopefully get an answer for you an update on where we're at with the rehab and we'll also make sure we connect you with the right management team if you're having some issues you know we work with a 8 different property management teams so what gets you sort it out so just you know email our team you know the team you know our team at Morris invest email us we had a really really really unusually harsh winter that set us back about four or five weeks on construction this year with like a deep freeze we had stuff all the way through Michigan into Indiana down into Pennsylvania where we just had all kinds of problems Ryan you are absolutely welcome thank you so much Sean says you weren't able to pull cash off the cards they got through funding to grow yeah that's unfortunate we have literally funny grows enabled our clients to raise over 20 million dollars for purchases of real estate so I'm not sure why that person had an issue they're very very good at walking you through step by step I just would say reach out to them and make sure that you're working with them they they have a thing with gold money so basically they use the cards to buy gold and then you transfer the gold into cash it's like a little bit of a few hoops to jump through but hey it's 0% interest for a year you know hey beggars can't be choosers right we were able to get a hundred and seventy six thousand dollars in cash because of them in order to purchase real estate so it's an amazing strategy so again and you'll save like five hundred bucks if you go through our website because we've asked them to do that for people who watch us and who listen to us so if you go to Morris invest com slash funding check it out it might not be for you if it is great just check them out you know I have a phone call with them Joe Joe wants to know what appliances do you provide actually I don't do any appliances in our properties now that is to say if we move into some of the b-class properties we some we will sometimes put in a fridge and stove and things like that but far as a washer and dryer we have I made that mistake when I first started in Michigan I bought all appliances and found out that I didn't need to that it's commonplace that tenants will provide all of their appliances they will usually typically go down to a local you know like a little scratch and dent company etc or that's where I bought my first appliances when I had my first condo in Florida I went to a local scratch and dent place they're brand new that may have like a tiny little little scratchy scratch on the side and you get a great deal on a bundle of appliances so that's what most client most tenants will do and then they'll keep them for many many years so you don't have to worry about it so Daniel wants to know what's the fee for you guys to do investing for me there is no fee with us at all I know some other companies charge like ten percent all that stuff we don't do that you're just buying the house we just you know and try to get it all stabilized for you with property management team and cash flowing so you don't have any additional fees you own the property free and clear Jimmy says how do you organize your banking system for your real estate business great question Jimmy you know we have a couple of podcast episodes Natalie and I do where we talk about how to run your you know your family business and finances for real estate investing if you want to check out the investing in real estate podcast you can do so and we have some of those episodes you know the short answer is that you want to have bank accounts set up for your taxes you want to have bank accounts set up for your LLC that owns your rental property and personally so I have LLC's that own my rental properties those LLC's have their own bank account so when the cash flow from the tenant comes in I Clayton Morris don't touch that money that goes into the business then I can pull that money out but you can't commingle money like you don't if it's a business that owns your real estate you don't want that money coming in to your personal bank account that's called commingling that's illegal the IRS does not look favorably upon that so you want to do everything aboveboard making sure that everything is flowing the way that it should Bobby yes what's the best way to start a property management team no cash but at the time and looking to help investors well I would say to start a property management company takes about a hundred and fifty thousand dollars I know this to be the case so right away to be spending one hundred and fifty thousand dollars to set everything up okay you're gonna need you're gonna need to pay for software things like rent manager appFolio those types of things you're gonna want to hire an accountant you're gonna want to hire an office manager you're gonna need to hire leasing agent you also need to get a brokerage right you need to have a brokerage license to make sure that you can manage property so all those things cost some money so to start a property management company that's what about that's what it roughly costs and then about if you have more than 100 properties the rule of thumb is for every hundred properties or so you're gonna want to add another human being to your to your company to facilitate those properties that came to me as a friend of mine who ran his own property management company those are the exact numbers that he used James wants so what's the area oh it's just on the website to find the gold funding option so just go to Morris and Vess comm slash funding it's sort of a hidden page because we don't like promote it but it's there if you sign up like I said you'll save 500 bucks once they get you the money you don't pay anything until they get you the cards Peter said spoke briefly with your guy Justin have a self-directed IRA I was interested that was a month ago he was going to keep an eye out for a property and haven't heard back Peter I will follow up with Justin or you can just you know feel free to reach out to Justin as well from our team because we we can set up a whole dashboard for you for the self direction so I'll make sure that Justin gets back to you Peter I'll have our team make sure we go through this comment thread to take care of it okay how can you cash out on a $40,000 property well so $40,000 homes are tricky because banks are lazy or appraisers are lazy so a bank is going to hire an appraiser to go in and they're going to those types of properties they're being sold every day to investors like I might buy thirty of them right but guess what they're all off market so they're not being sold on a multiple listing service like you buy a house for a hundred thousand right with a realtor and so when an appraiser goes to pull comps in order to appraise the property they don't have any comps to work with the only cops they have are ones that are on the MLS the ones that they end up pulling end up being ones that are like foreclosures or pre rehab so you might have a forty thousand dollar house and you know it's worth forty forty three forty two but they might appraise it at twenty because the only thing they could find that sold recently on that street was a foreclosure that's not been rehabbed yet so you can't you kind of at a crapshoot if you're planning to do a refinance here's my suggestion it's just move up into those sixty sixty-five seventy thousand dollar homes and then you're putting like you know then you're able to pull almost like the full equity out of that house or close to it if the bank then cuts you a check for fifty fifty five great then you can roll that into your next property so I just would say told code don't try to go super cheap if you're planning on doing a refinance banks are lazy and you're frankly just at the mercy of these banks you know I can pull up sales disclosures with hundreds of sales where the house is selling for forty three forty five but guess what the appraiser will not look at that and so then you're at the mercy of like a foreclosure that's on the Multiple Listing Service and unfortunately it's it's just difficult now we've had people who've done refinances on forty thousand dollar homes and you know like one of our clients recently bought one for forty three it appraised for fifty five but again it's a crapshoot he could have just as easily had the appraiser come back and say you know well we think that house is worth twenty two so remember what you're buying is cash flow when you're buying that low and you're trying for that high of are a lie you're you're sort of like the investor that's buying 50 properties like that they don't care about ever refinancing they just want the ROI they want the cash flow I hope that makes sense sure our Lara says I've got a shooter I think I missed it sorry zip past it Ahmad it's kind of invest the United States if I'm not a US citizen yes you can you know just book a call with our team we have people I mean we have a lot of investors Canada and New Zealand all over the world who invest with us do I see Florida getting to California prices within 10 years seeing a lot of new construction and price hikes there in Tampa yeah a lot of those coastal areas you know Tampa those types of places Clearwater Miami of course I don't see them getting to California craziness you wanted let me tell you a California story the reason it's ridiculous so like the same house that I might do in Michigan or Indiana and then our clients would buy maybe like a 3-bedroom 1-bath in the $50,000 range right well there was a 3-bedroom 1-bath last week on the market in the bay area for $900,000 and guess what it was condemned it's a condemned house selling for $900,000 in the bay area that's California it's crazy absolutely crazy Mario says I was thinking about buying houses in my name under a HELOC on my primary residence and then when I get to three to five houses to a portfolio loan and all three to five and an LLC is that okay yeah I mean but why would you need to buy them if you're using a HELOC to buy them just buy them in an LLC now you know there's no reason you should buy them in your own name at all ever buy them buy them in an LLC if you're using the HELOC it doesn't matter how you use the he lock key lock is cash right you could go out and buy a boat if you wanted to with your he lock the bank doesn't care you're just writing a check from your he lock so why not buy them in your own name now I've started buy them in an LLC today you're using the he lock on your primary residence it doesn't matter the bank doesn't care what you're doing with that money you just have to pay it back but I to me having a HELOC is one of the killer strategies I love a key lock on my primary residence I use it to buy properties all day long Michele says what are your thoughts on using quicken loans to buy a house I've never done it you know hey if you can get good rates and good terms from a bank to buy to buy a house great go for it I don't see why not video teaching can you recommend a bank for a HELOC on a New Jersey property lakeland la ke Lakeland Bank we love them they're fantastic smh ninja on the funding Grove fees no notice he you're refinancing very quickly so you're gonna refinance very very quickly by that fifty sixty thousand dollar home and then get it into a long-term 30-year note and you pay off the you pay off the zero interest credit cards and then you recycle them so that's what fund and grow does they recycle and get you more zero percent and then you can just rinse and repeat that's why it's a great strategy so you're not keeping those cards for you know with like you bought a house on a credit card for twenty years you're refinancing it within that first twelve eighteen months and yes you can quit claim deed you can move a property to an LLC Kevin wants to know thoughts on an umbrella insurance versus LLC well that's well I say you have both I mean I would definitely have insurance and also have your properties in a limited liability company the reason you have your properties in a limited liability company is so that people will come after you personally that's the key right you don't want people if tenant slips and falls because a handrail wasn't fixed on your one property and this happened to a buddy of mine in Philadelphia he has a property and a girl was drinking one night she came home to the condo she slipped outside because the sidewalk had like this much of a differential and sued him fortunately you know he had insurance but fortunately the case got dismissed or dwindled down where he only had to pay like seventeen thousand can't come out of pocket seventeen thousand to pay for this girl slipping and falling at his property because he had the property at his own name so don't put properties in your own name if you don't need to there's no reason to forest so to have a bank you recommend for refine 50k rentals I guess it just depends yeah I mean there's a couple you know State Farm actually the insurance company has a refinance program a national program Northpoint Bank all one word with an e at the end North Point also has a refinance program they're a national company as well you could look into them Daniel says how do you tell if a property is a B or C class that's a great question I've got a whole video series here on our YouTube channel about how to understand that so you can if you want to look that up right here on the channel it goes more deeply into that but the short answer is an a-class neighborhood I like to avoid an 8 class neighborhood or those two you know two hundred three hundred thousand dollar homes two-car garages maybe they have a swimming pool they're in the best neighborhoods I stay away from those as an investment property because you're gonna have the most moving parts that break you're gonna have the most entitled tenants that cause the biggest headaches and cause you the biggest problems so garage door openers that break garbage disposals that break multiple heating and air systems that break you know avoid those those also have the most volatility those tend to be the areas where those in a big recession lose their job the a-class neighborhoods we saw that across the country right these a class neighborhoods where people lost their jobs and all these houses went into foreclosure and people couldn't pay their rent or the value plummeted significantly so let's say they're renting it from you for $3,000 a month in an a-class neighborhood and everyone loses their job all around that a class neighborhood now the rent is you know you're gonna have to go down like 20 2022 hundred a month or even 1800 a month we saw that in Manhattan right people renting Manhattan apartments for thirty five hundred bucks a month the recession hits and guess what all these Wall Street people lose their jobs etc and those went down significantly you could rent a place in Manhattan for eighteen hundred a month instead of the 35 that you could before the recession but guess what those C class neighborhoods say the same those C and B class neighborhoods roughly stayed the same it's consistent cash flow those are the people that tend not to lose their jobs those are the people that are working blue-collar b-class is kind of moving towards an a-class it has better schools slightly lower ROI but I've been buying a lot more B class properties lately personally because you know when you get to a point of having find enough cash flow you really want to start thinking about buying those more expensive B class because you're creating more of a tax shelter for yourself you're creating that bigger spread that bigger tax shelter and you're adding to your net worth more significantly so but C and B are my favorites so I've been a lot of C and I'm starting to buy a lot more B yeah lisa says that's why I like condos no outside maintenance but then I don't like the associations right I do not like HOA fees and I've got a whole video on HOAs because HOAs honestly you're sort of at the mercy of these people I mean you're literally at the mercy of these people and you never know when they're going to decide to change the bylaws and make it so that you can't rent the place or they're gonna hit you with a big roof assessment you're gonna have to pay you know $5,000 for a new roof on the property you have no control over that so homeowners associations I'm not a fan of Daniel we don't we don't have a number for you to call us because we want to be able to schedule it with you so just go to our website click on the schedule a consultation button you literally answer like eight questions like your first name last name best email address to get a hold of you make sure you type in your phone number correctly and then we just ask you a few quick questions like how many properties do you currently have what are your goals and then you pick on the calendar the time that you want to schedule a call with us it's very simple so it's up to you you know that you got the kids from to p.m.

We don't write so we want you to pick the time that best serves your needs it'll go on your calendar we'll send you an email reminder about ten minutes before your call and we'll jump on the phone with you and talk to you for like thirty minutes Chad boys wants to know how is Capp West you know I heard good things about them years ago but then I think I heard things kind of fell off and I haven't really actually heard many people using them so I don't know I've never used cap West what if you want to live duplex a class neighborhood your thoughts well Rodney I mean some few if you want to live in the property that's up to you right because that's a different animal than investing in a property but if you want to live in a duplex than in a class neighborhood great you buy it I would rent out the other side so that they're paying your mortgage that's an investment right that's an investment property in a class neighborhood so you know go for it you know just a matter of whether if you're in an a class neighborhood are you likely to have a higher turnover on the rent because people want to have their own single-family home they might not necessarily want to split a house with somebody if they're in a class neighborhood you know when I was younger I was fine kind of having a shared wall with somebody but now that I've got three kids and I'm an adult there's no way I want to share a wall with somebody else you know I want my own place I want my own yard what do I think about a land trust well it's funny you mention that as our tax accountant thinks that they are a total mistake so I do not do anything in the land trust sam says I spoke to Glenn a few minutes ago awesome

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user 0 Comments August 29, 2022 Tips for Retiree's

I'm going to do a video on 5 simple things you can do to help your financial situation and I realized that I need to do a follow-up to the retired at 40 story video because there's a huge need for financial education in this country and really everywhere it pertains to every single person doesn't matter what your financial status is you can always use help and there's always little tip tips and tricks that and things that you can do to better your status it always amazes me how scared people are to talk about their finances to put something on paper to basically take a look at where their money is going what's getting saved and how everything is getting spent and I've met people time and time again that are highly educated very smart people but they know nothing about finances and they are terrible with money management so before we get into the 5 tips I want to strongly urge you to make a financial statement for yourself figure out where your money is going currently and figure out how much you're saving and basically figure out where you can trim the fat for so many people a financial statement or just finances in general is like a bad word they're just terrified of it but the only way that you're gonna be able to improve your finances is to face the music alright so now that you've had a chance to go through your financial statement you definitely know where your money is going but how can we save more and what you really need to aim for is about 6 months of reserves especially if you're getting ready to invest money into something or if you're doing some kind of career change or some life-changing thing and all of these five tips will more than likely be a line-item on your financial statement so let's go to financial tip number one hey I'm going to have to call you back I'm shooting a video right now so this first thing is something that we've all become very very accustomed to in the last 10 to 15 years and that is a cell phone and people tend to spend absurd amounts on their cell phones whether it's the bill or the cell phone itself mainly the cell phone itself so that's my first financial tip is shop on eBay or Amazon for a cell phone that's refurbished or used or one this may be just a couple years old I actually just purchased a cell phone on ebay because I'm having trouble with my current one and I got on to my cell phone providers website and the most expensive phone that's like mine now is $1,200 that's insane to me so I got on eBay I found one that's similar to the one I have right now it's new but it's a couple years old and I got it for less than $200 another thing that you can do is ask for some kind of loyalty benefit from your cell phone provider cell phone providers are constantly trying to earn your business and if you've been with them for a long time and you can convince them to keep you around by offering you some kind of benefit they'll jump on the chance just by going into my provider recently I have a cell phone bill that was about a hundred and ten dollars a month I told them that I've been with them for close to 15 years they knocked it down to sixty-seven dollars and I have unlimited everything now tip number two is what I call going to youtube University or getting a YouTube education we live in the most amazing time ever right now there is information everywhere and it's so easily accessible don't ever stop educating yourself it's so easy to find out how to do things these days you're doing yourself a huge disservice if you don't take advantage of that so how does that pertain to saving money well you can save money by doing tons and tons of things yourself instead of paying someone else to do it just look at the platform that you're watching right now for instance you're watching a video on how to do something so that how-to can be anything from changing brake pads on your car to changing the oil on your car to fixing a leaky faucet or the toilet flapper not working on your toilet all the way to how to the meal which brings me to my next point number three so food is a necessity in life but is it a necessity to go out to eat or go to Starbucks once or twice or every day the amount of money that people spend on food and going out to eat fast food Starbucks McDonald's it really adds up quick and I don't think that people realize how much money they're actually spending on it because it's just five or six or seven dollars here and there but if you add that up over the course of a month or a year or five years or ten years I think the result would be pretty staggering cook your meals at home pack your lunch for work make that fancy coffee at home it's not that tough to do there's so many great ideas and resources on YouTube and Pinterest and vlogs and blogs this channel included if you need a place to start scroll through my channel I have lots of cooking videos if you want to take that a step farther you can start growing your own food and if you don't have a big green house like this you can grow a lot of food just in five gallon buckets even on a little deck if you don't know where to get started see tip two number four is something that really hits home for me because me and my wife are both self-employed and we have been for 15 plus years so number four is insurance and although I don't like insurance companies because I think they're a giant scam it's a necessary evil and you can also use that to your advantage you can put them against each other insurance companies much like cell phone companies are begging for your business and they're constantly trying to outdo each other with with certain benefits or promotions so make them put their money where their mouth is and put them up against each other constantly and not just insurance companies you can do this with all kinds of different companies you should always be price checking these companies the ball is in your court make them earn your business all right I'd saved the best for last tip number five is taking advantage of bank account and credit card bonuses and this tip is begging for a separate video all on its own because I could go on about this for a long time but if you're not taking advantage of credit card bonuses for sign ups or credit card cash back or travel miles or if you sign up for a bank account a lot of them will give you a large sum just for putting your money with them now I want to be clear I'm not promoting just going out and spending a bunch of money on a credit card but more putting the things that you already spend money on into the credit card it's money that you're spending anyways put your mortgage on a credit card if you can insurance is a good one it's not super expensive but at least we'll get you a couple hundred bucks on your credit card unless of course it's health insurance and then you're talking in my case thousand to twelve hundred dollars a month here's another good one groceries it's something that you always have to have and depending on how much you go to the grocery store it could add up to three or four hundred bucks a month sometimes six hundred maybe even more no-brainer here put your gas on a credit card you can always put your utilities on your credit card too if your utility company will allow it next from tip one your cell phone bill now depending on how much some of these are and if you are allowed to actually put them on your credit card you're talking some pretty major money that you can get a bonus from if you're getting two percent cashback that really adds up not only that but you're increasing your credit score while you're doing that so as long as you're financially responsible and you pay this every month you're reaping a large benefit a lot of credit cards will give you a 2% cashback they'll give you a $500 signup bonus that's free money in my opinion the free bank bonuses or even better than the credit card in my opinion because the bank account is something that you have to have anyway a lot of them will give you $500 for a small deposit as long as you put your direct deposit with them all the way up to I've seen $1,000 before and if you have a little bit more money to play with some of the online money market accounts like Capital One will pay you up to 2% or some even up to 2.5% just for keeping your money with them so some of these things may not seem like it's saving you a ton of money but when you take up those extra fives and tens and occasional hundreds and you put them to work for you as opposed to something that you're normally spending you're not only saving the money because you're not spending it but you're putting it to work and doing something else with it and you'll find that your your finances will start to collect very quickly so if you found the video helpful and you enjoyed the content take a second to give me a thumbs up it really helps out the channel and it helps the YouTube algorithm get this video out to people who actually need to see it also don't forget to subscribe we do some gardening some frugal living some food preservation and cooking some gardening and you get to join me and my family on our retirement at the age of 40 after you've clicked subscribe click the bell notification also and it will notify you every time a new video comes out and it'll keep you in the loop of the community all right I appreciate you sticking with me through this whole video so I'm gonna give you an extra bonus tip with an extra 100 or 200 or 300 or more dollars per month that you're saving with just cutting back on a few things you take that extra money and you pay down debt with it the faster you get out of debt the closer you're going to become to financial freedom and whenever you're paying off debt always choose the smallest balance first because it gives you that extra little boost and if you can pay it off faster it gives you that extra bit of confidence to rock into the next one so once you've paid down your smallest debt move on to your next smallest debt take that money that you're saving from the smallest debt that you're not having to pay any more and add it to the money you're saving from the 5 tips that I'm giving you and apply it to the next smallest debt and when that one's paid off you roll it into the next one you roll that one into the next one and so on and so on in the meantime this is retired at 40 check out these other helpful videos if you have a minute remember to live a life simple and we'll catch you next week oh hey I'm gonna have to call you back and shooting a video right now this is right my god get out of debt

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