Build Wealth With the 3 Bucket Strategy In Your 30s! (2023 Edition)

[@davisamills597]

I just entered my 30s and it's sooo hard to balance homeownership, investing, saving, AND starting a family. Whew...!

[@turboZ3]

say that again 🙄

[@Tsunaniis-j5l]

convinced that investing $50k-100k in the right company before it goes big is better than just saving for retirement. But since picking the right company is hard, saving might be safer-who would’ve guessed SPGI? I have $200k in a HYSA and want to invest. What are the best opportunities now?

[@DreamweaverShade-h9p]

Remember that investing in the index funds carries risks, and it’s important to do your own research and consult with a financial advisor if you are not satisfied with your decisions.

[@dannielleemarie]

I agree with you. As an early investor in NVDA, AVGO, ANSS, and LRCX, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.

[@Dwayne-765t]

I'm glad I found this conversation. I have cash to invest but am worried about picking the wrong stocks. Can you refer me to your financial advisor?

[@dannielleemarie]

Melissa Elise Robinson is the licensed advisor I use and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

[@user-567-ut]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@losttommyboy3391]

Sad to say but 5% annual increase for Manny isnt realistic. 3% would be better but still agressive imo

[@BunkMasterFlex77]

With inflation people are getting pay cuts.

[@me0101001000]

Depends on what you do. S&P500 usually is between 3% and 5%, maybe up to 7% if you reinvest all of your dividends. Unless you're talking total market, in which case you're right.

[@zachhecksel2920]

​@me0101001000 I believe he is referring to the 5% annual wage growth and not investments. The investments start at 10% gains and drop 0.1% every year (second year is 9.9%, etc.). 5% wage growth is probably pretty close to average for business majors out of college. I can't speak for other career fields though.

[@jj.gallagher]

It is too high if he remains in the same role. But if he promotes or changes companies it could be realistic

[@kenmoorhead2943]

5% as an average of annual bumps + promotions isn’t a bad assumption

[@FunStuffBuddy]

30s is messy, 40 is SUPER messy if planning to help with college/weddings, etc. 🤣

[@peeonthe3rdrail414]

Yes, but you're also not having to keep small children alive.

[@annaj.osorio]

Roughly $120K in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.

[@michaeldowning7094]

Total market index

[@Rastebb]

Get out of single stocks and go to index. 80/20 split domestic and international is the general guidance. Personally I only do 5% international but that is my personal tilt

[@tonicktv951]

My taxable account is just as important to me as my retirement accounts. Gotta build that cash that you can use between now and 30 years from now. That's like 75% of your life and it takes so much time to build from a negative net worth in your 20s.

[@isiah675]

What are you holding in the taxable looking for guidance 😂

[@tonicktv951]

@@isiah675 100% sp500 etfs. VOO is my fave.

[@zacknelson8918]

I am 30 self employed, been investing for 2 years now, started with a Roth, been maxing it out, this year I just started a sep ira, I have a index fund with qqq, and I own alot of stocks, I am trying to use my money to make money instead of siting in my account buying a hole there

[@michaeldowning7094]

Many people dont find a good paying job until their 30s, able to make enough money to pay bills and have enough to invest the minimum percentage into job retirement accounts. I just started at 29 only able to do 3% in my jobs 401(A) plan they match 100% to 3.2%. Still living check to check making less than $50K a year. This year my job started a $2000 match 457 plan, I'm gonna invest up to the match then stop. Then put what I was putting in the 457 into my separate Roth IRA.

[@wyva9845]

Great insight into the type of insurance and how your needs adjust

[@Diggler569]

One thing to keep in mind is that when you are withdrawing from your 401k, you wont be paying social security, FICA, and state's sdi. If you retire in CA, you're only paying federal and state and if you move to FL or Tx, it lowers your tax bill alot. 100k a year from 401k is 80k compared to 65 to 70k from regular wages (just guesstimating here).

[@Thedonron12]

33, single & no kids with a net worth approaching half a million with no consumer debt making 6 figures. My 30's is getting better and better!

[@davisamills597]

Lol! Thats the life! I just got married and my husband and I are considering starting a family in 1-2 years buuuttttt we are loving our freedom and investment accounts going up and up every month. So i totally understand lol

[@eugenechurch6135]

What does this mean If you have a pension.

[@zacklynch584]

The premium health plan always costs more than the low deductible plan. Regardless of whether you use your plan a lot or not

[@jackiew2026]

As a young healthy person with no expected health care costs yes but if like they say you're planning for kids or unexpected health care costs come up it can change pretty rapidly. Especially if you have crappy health insurance to begin with.

[@zacklynch584]

@@jackiew2026 No. I have done this now for multiple health plans. Add up all your premiums plus potential expenses. The maximum out of pocket with a high deductible plan is way less (with a premium plan you may only have a maximum out of pocket which is a few thousand less, but your premium is way higher). And then, with minimal treatments, interventions - it's still a better deal. You take the savings in premium and put it in your HSA. Then, you still save whatever you would for emergency medical expenses. Once you have your annual out of pocket saved, you are self insured against whatever deductible costs may come up. I have a high medical spending family (special needs and another pregnancy). The high deductible was thousands cheaper in the long run.

[@MrDarkBM]

Are all these buckets really necessary when I can do a Roth employer plan and a Roth IRA? What’s the point of doing a traditional type account?

[@logs495]

If you have a high income, you're in a high tax bracket. Therefore, it can make sense to get the tax benefit now, rather than in retirement, when you'll likely be in a lower tax bracket

[@MrDarkBM]

@@logs495 I’m in the military so a little less than half of my pay isn’t taxable. I think I’m better off staying in all Roth accounts.

[@logs495]

@@MrDarkBM I agree

[@choomanfoo157]

Having a traditional taxable account gives you financial flexibility, both Roth 401k and IRA have age withdrawal rules, so the point of the 3 bucket is to be able to tap into any bucket depending on your life stuff that comes up and we all know how unpredictable life stuff is when it happens.

[@MrDarkBM]

@@choomanfoo157 wouldn’t I be better off just pulling out from my Roth IRA at that point? Since I can pull out contributions without penalty.

[@aprillebancho]

A more relatable example would be manny actually starting in their 30s vs 25 with a 3% salary increase a year

[@Nineone96]

What's considered "well above" 30%?

[@billS560]

My rate of return for the last 8 years (with vanguard), is 3% total. My entire 20s are gone, with essentially no growth to show for.

[@marcopolo3109]

How that could be possible the rate 3% of return over that time with vanguard. Like what type of investments did you had at vanguard all those years?

[@factsondeck1552]

You must have used a financial advisor 😂

[@Rastebb]

Thats on you... today is April 16 2024, this comment is 10 months old today. 10 months ago VOO was at $378. 8 years before that it was at $206. That's a 83% return over 8 yrs

[@Random-ld6wg]

i fully funded a roth ira then converted to non deductible ira and backdoor converted to a roth with taxes paid from aftertax bucket 23 yrs between the 2 and had roth401K for 11 yrs. i don't have double that amount in tax free compared to manny over 23 yrs.

[@michaelswami]

Manny, the mutant needs to be careful and not hook up with Minnie the moocher

[@Username_CC_]

Im 29 right now watching this to get ready :D

[@Azamoraperez]

Im 25 right now but I’m still in college

[@alk672]

I decided I'd just keep coming to these videos and leaving the same comment until someone else does. These examples are dishonest garbage. All numbers and charts are deliberately presented in nominal (future) dollars, not today's dollars, to create an impression that things play out about 4 times better for Manny than they actually do. I love these guys, but they are being dishonest on purpose. The farther into the future the charts go - the more dishonest they become.