The New Benchmark for Financial Success?!?! What It Means to 'Make It'

[@ljosephdumas3113]

"I feel financially comfortable because I live below my means." BINGO!

[@dlg5485]

Of course, it's never as simple as that. What if your "means" are only $35k per year? You'll have a pretty hard time staying below that spending level in order to get ahead. In order to live below one's means requires a certain minimum income that not everyone can achieve.

[@rarelycares8416]

@@dlg5485 Doesn't matter what your means are...if you live below it you are ahead of over 75% of the population. I is easier to increase your means than it is to reduce your expenses once you've started spending. I started out with nothing and made near minimum wage for the first 8 years...but I lived very cheap and still managed to save $50k in my 401k by age 28. As my income increased I saved higher and higher percentages and retired last year at 55.

[@Stupid9808]

@@dlg5485 Ramen is still 25 cents.

[@Noneofyourdambusssiness]

That!! Being financially informed and having no debt.

[@Shadow_Banned_Conservative]

@@dlg5485 It's going to sound cold hearted, but you really need to think of a life of earning a lot more than 35k a year, and doing everything you can to level-up.

[@yhckelly]

Any group of people that says they need to clear 50k a month to be financially successful has not put any thought into the question at all.

[@fdm2155]

Sounds like a panic response.

[@marram2852]

Or, they are so undisciplined, they can't say "no" to anything.

[@fdm2155]

@@marram2852 Even if what the mean is "I want to buy everything I see without worry", $50k per MONTH, is a lot of money to spend. It's not like you're buying a car every month. 😄

[@eddiemalvin]

To be fair, that was the response of the youngest generation with the least amount of real-world experience and facing the most uncertainty about retirement. They simply have a different definition of "financially successful" than you. Don't take it personally. It's not like they're saying people who make less than $600k are "failures".

[@eddiemalvin]

​@@marram2852 Perhaps being "financially successful" means they don't have to say "no".

[@scottthomas1894]

Great video Erin. I think the ultimate sign of success is being a KZbin content creator and having 113,000 subscribers.

[@ErinTalksMoney]

Hahaha!!! I love it!!

[@Gary65437]

Never happy, they will always want more subscribers and of course more dough.

[@alexanderlyon]

Congratulations on 100k subs!!!! Seems like you really blazed past it. _Onward!_

[@ErinTalksMoney]

Thank you Alexander!!!

[@Eric-wc7lx]

The “4% rule” is very sobering. There are many households bringing in over $100k in the US, but not many with the net worth to maintain that same lifestyle in retirement - especially if Social Security is compromised. I tell my children often that they shouldn’t think of the money in the IRA as a lump sum, but as the 4% rule income stream that it can generate.

[@JBoy340a]

You should also remind your children that SS was never designed to provide their entire retirement funds. At best it is to provide 25%-28% of the funds they need in retirement. The rest needs to come from their savings and investments. Younger people have the advantage of years of compound interest. But only if they invest early and often.

[@Shadow_Banned_Conservative]

@@JBoy340a The other problem comes from an unsustainable system. Those with means are going to have the "benefit" that they paid into for a lifetime, cut based on their investment income in retirement. That's coming in the future, it's unavoidable.

[@JBoy340a]

@@Shadow_Banned_Conservative I sure hope not. We have worked hard, saved, and invested for a long time. I hope they do not cut our SS payments because of that hard work.

[@Shadow_Banned_Conservative]

@@JBoy340a I hope not either, but I really don't see how we don't wind up on that route with support from the public FOR it. We're going to be punished for our forward thinking and sacrifice to build our retirement wealth. So many people don't have anything saved and they're blaming us for it. They're all for taking from us, as much as they can take. If it comes down to you getting a monthly 5k income from your investments in retirement and another 3k from SS, and someone getting only a 2k check from the government that can't make it, they'll take your 3k check and divvy it out to those who don't have to make things equitable. As it is, it's very likely the SS obligations are going to have to be offloaded to the general fund one day soon. as in a few years SS won't be able to make the promised payments it has today, not even taking into consideration tomorrow's obligations.

[@Shadow_Banned_Conservative]

@@JBoy340a Well, I typed out a well though out reply regarding our "entitlement" that KZbin feels they needed to censor. The truth has no place here on KZbin. Ain't modern day_fascism grand!

[@neverclevernorwitty7821]

Genz wanting 600k/yr!? 🤣🤣. Ladies and gentlemen, I give you the influencer generation.

[@angiepatterson6338]

It’s not so unreasonable-they’ll just have mommy and daddy give it to them every year.

[@shawnbrennan7526]

Wanting $600k - so what? They were asked a question about what number would make them feel very successful and they picked a big number. No big deal.

[@JasonBay-RealEstateInvesting]

@@shawnbrennan7526 It's wildly unrealistic. That's why it's funny.

[@shawnbrennan7526]

@@JasonBay-RealEstateInvesting That wasn’t the question though, was it?

[@Stupid9808]

Or failing math departments in education.

[@JasonBay-RealEstateInvesting]

Many people argue that social media is a net negative because it makes us compare ourselves to celebrities we don’t even know. I see it differently. For me, 99.9% of my family and close circle I grew up with (sadly) struggle financially. Social media exposes me to people who are succeeding, giving me something to aspire to. It shifts my mindset to, “If they did it, so can I,” and motivates me to ask, “How did they do it?” If I only compared myself to family and local friends, I might have set my bar far too low, simply because of the circumstances I grew up in.

[@UncleWally678]

I’m a boomer. For years , while saving & preparing for retirement, I followed the advice I received from listening to Bob Brinkers financial advice radio program. His goal for retirement was to reach critical mass. Meaning you have enough income from savings and retirement that you are able to pay your expenses without reducing your savings/net worth. To do this you need to be able to honestly project your expenses and build a budget you stick to based on those projections.

[@Azel247]

You are spot on Erin! Feeling successful has very little to do with actual numbers. Rather, it's how you feel you compare to those around you (which includes the people you follow online). If you're 25 and you see 25 year old influencers flying private jets and driving lambos, you'll feel extremely behind. GenZ need an ultra high income to feel successful because that's the income required to live that (fantasy) lifestyle. I imagine this will change rapidly if those influencers are required to put a disclaimer when the planes, cars, and homes they are showing are rentals.

[@Shadow_Banned_Conservative]

There was a time when we used to watch a TV show about lifestyles of the rich and famous. Back then, it was a little escape from reality. Today, kids see what you describe and think they deserve that, and they deserve it now. I see that in almost all of today's youth, mostly on a smaller, but still unrealistic scale. For example, I work with 25-27 year old engineers who believe it's "unfair" that they can't afford a home at their age, in a hip, expensive part of the city. They "deserve" a nice car now, designer labels, new phones, going out every night of the week. They're spoiled to the point of disenfranchisement with the system because they can't have the things in their 20s and 2 years out of college that most of the older generation worked to achieve over decades of work, saving, sacrificing, etc.

[@djcoolrule]

Between 300 to 500k in my TSP is all I need. If I can grow it higher puts more icing on the retirement cake. Merry Christmas to you and your family Erin!

[@Retired_Life_1]

That is very attainable. I retired earlier this year at 56 as a TSP millionaire ($1.4m) with 31 years of service. I invested aggressively the C and S funds for the first 25 years or so. I was planning on staying until 60 but with the fed pension and separate investments I can cover all my expenses. Good luck on reaching your goals.

[@tgunnarson]

@@Retired_Life_1 - Congratulations on reaching MRA 30+ // My goal is only slightly delayed by previous employment as a contractor but as a DOD civvy, I'll retire @ 60 with 25yrs (57 now, working in Germany for EUCOM, touring Europe with wife and loving every minute of it.)

[@tgunnarson]

Great to see other GS people on this channel. Maybe we can convince Erin to dedicate an episode to planning for a fed gov retirement ... 3yrs from FERS retirement, 3 houses paid for and renting out while wife and I tour Europe on my last assignment before collecting the pension. Started my career with no degree, enlisting E1 for Desert Shield (Sep90) raised 2 kids and always lived on less than we made. Paid cars off quickly or paid cash for them. When the family was growing and we needed to move houses, we kept the previous one and rented it out until the mortgages were paid off. We plan to never sell a house, use them for rental income to supplement pensions. If we get SS income, we'll use it for hobbies or reinvest. TSP/401k we plan on using for QCD to reduce tax liability. Retirement is great when you live on less than you make and really painful when you don't.

[@paulmartin8212]

Best advice, live below your means. Get out of debt as soon as possible. Don't try to keep up with the "Jones's". I'm 70+, debt free when I retired. Great goal. I have less than 1 million net worth and can give 10k+ to charities every year and vacation as much as I want. Start early in life to take advantage of compound interest.

[@jsb9317]

Are you single?

[@craigwhitten1]

This video is a good way to think about our perceived needs and what we actually need to be stable. My opinion about financially stable is orders of magnitude different than my Boomer parents. Another way to look at things, one of the reasons why Millennials or Gen Z might think they need so much to be financially stable is the tendency to compare their experience to that of others. Social media is the thief of joy.

[@dustinquinton]

Debt free is being financially successful.

[@mymodely7755]

So basically GenZ doesn’t have the life experience to understand how life works. Their income number are unrealistic.

[@jerrym3261]

Science taught me happiness. For me, I live in the now and often ask myself, what do I need to be happy right now? My answer is always nothing, I don't NEED anything to be happy.

[@mocheen4837]

Millennial women also need a partner who makes $1 million per year, owns a home and is 6’ tall. Expectations are off the charts.

[@jerrym3261]

I just saw that video!

[@shawnbrennan7526]

Millennials are now 28 to 43 years old. If your daughters were in that range and happened to be considering marriage, wouldn’t you want them to consider whether someone was financially savvy? (Height shouldn’t matter in a relationship, yet studies show that tall people are paid more and are more likely to reach the C Suite).

[@kannermw]

​@@shawnbrennan7526C-Suite represents

[@hippusmaximus9319]

Whoa... Are Better Bachelor and SSM viewers on here too?

[@jip230]

Yet men who have none of those attributes get married every day. Why is that?

[@PhilDann]

Excellent video! It’s completely personal and based on your values. It’s a journey and for most of us, it doesn’t happen overnight. It certainly hasn’t for me and my family. We’ve stuck with a thoughtful budget for 20+ years now while also making sure to enjoy life today too. Tomorrow is never guaranteed. I’m proud to say we became debt free this year (56) and have a very healthy retirement account. We certainly aren’t rich; we live modestly. Funny though the numbers say we are but I don’t feel that way!!

[@dr_flunks]

600k salary just speaks to the immaturity of the responder. that's the rough equivalent of having 600k/.04 = 15 million.

[@fdm2155]

I wouldn't assume it's all down to immaturity but rather what Erin suggested which is younger people feeling the pressure of how much more difficult it is to afford an ordinary middle class life much less something above that. I'm Gen X but just shy of being a Boomer. It would never occur to me that I needed several million to feel 'financially successful or secure'. But I have a mortgage free house that didn't cost hundreds of thousands of dollars. And I didn't leave undergrad with $50k in student loan debt.

[@360dom360]

​@fdm2155 this is absolutely it. I feel this a bit as a millennial and I've seen those i work with younger than me talk about this and clearly feel it much more

[@shawnbrennan7526]

My daughter is 22. How much money do you think she should plan to have in her retirement nest egg when she hits 65? (And given that the question was “how much to feel successful” (not “how much to scrape by”) why is it surprising that they picked a large number that would get them out if debt, put a decent down payment on a house, and save towards the future?

[@princesskaitlinhazelwood4703]

They are young and do not understand how difficult it is to make money. I would say 200k but I am in my fifties. Net worth of 3 million or more to be wealthy.

[@Shadow_Banned_Conservative]

@@shawnbrennan7526 So that means she should expect a 600k income? You're losing me here.

[@bikerTR]

A penny saved is a penny earned! So true and important to exercise this as you grow your portfolio. Great video as always! ❤ the Bloopers!

[@petestandley2690]

A lot would depend on how the question was asked. Boomers might already be retired, are far more likely to have a pension (which is often not part of what they might consider their personal net worth), and SocSec checks coming in, so their personal retirement accounts have to account for a much smaller portion of their needs. Younger folks are more likely looking at being personally responsible (401K, IRA, etc) for their whole support and discounting the future value of SocSec to almost zero in some models. Factor in the many more years of need if asked what they would need right now, easy to understand the very large numbers they estimated they would need/want. To really understand the responses to a survey, one has to see the actual questions that were asked to the people and how they were phrased. Was it a verbal survey or a written one, did the survey provide open boxes for answers or simple multiple choices of ranges for the answers. Survey design can and will seriously impact survey results to favor whatever narrative the questioner wants to support.

[@shawnbrennan7526]

Boomers are definitely more likely to have pensions than the later generations, but it is not as prevalent as I would have guessed. Among “peak boomers” (born 1959 to 1964), only 24% have traditional pensions.

[@Tialian]

A lot factors into the amount, but for us (as millennials) its about 150k which allows us to max our 401k and Roth IRA and still save for other things like house maintenance and future transportation needs. That said, we can live comfortably on 40k right now (before taxes), and once the house is paid off that will drop to 30k. Net worth wise, because we live so well within our means we shouldn't need a super high net worth when it comes to retirement. I have a hard time finding reasonable things to spend money on now, I don't see that changing after retirement. So I'd say a net worth of 1 million (which we hit in October) is sufficient for our particular needs, that does include our house though so 1.5 million would probably be a better target. That said, you never know what inflation will look like 40 years from now, but considering a dollar today is something like one third the value it was 40 years ago, the ideal target for us is probably 3.5 million. We are expecting a pension and social security if its still around, so the 3.5 is if we didn't have any other forms of income.

[@penelope5500]

As a retired BB I feel financially successful just b/c I have enough money to take me to the finish line, even if someone moves the goal posts.

[@aolvaar8792]

The measure of Success is in Being not doing, At the end of life, you want to be a Great Human Being, Not a Great Human Doing. Nothing Sucks Seeds like a beakless bird.

[@angiepatterson6338]

@@penelope5500 Same here (Gen X). I have no debt and live day to day on my Social Security. The rest, all that passive income like stock Dividends is just gravy that’s more than the Social Security that goes back into the stock market or gets used for vacations, etc.

[@Brian-nb6fb]

Not sure who said it... Comparison is the thief of joy! This has never been more true as now with the ability social media provides to compare. Just because someone looks well off doesn't mean it's true!

[@leftwingersareweak]

This lady is smart, wise, and really attractive! Great combination.

[@jimkelly1613]

Maybe forgot great voice

[@JasonBay-RealEstateInvesting]

So many people say $1M is nothing now days. It's still VERY hard to reach this milestone. The median salary is $80K Even if someone could save $1,000 without ever failing to invest this amount, and assuming a 7% rate of return: it STILL takes 30 YEARS! I am not arguing to not invest, I am merely pointing out $1M is still significant and anyone who reaches this number should feel very proud. Gen Z wanting almost $10M can be done but now you're looking at close to 60 years.

[@shawnbrennan7526]

Many of us have said that $2.5M is a good target right here and now for “financially successful” because that equates to $100k per year using the 4% rule. My daughter is 22 right now. If we assume 3% inflation, the equivalent of the $2.5M when she turns 65 will be $8.9M. I’m not saying those numbers are easy or absolutely necessary, but people ought to do the inflation math before mocking the answers of these young people.

[@grega2362]

You have to get the first million before you can get the second.

[@jip230]

I'm glad someone pointed this out - and YES, just reaching $1M is really hard and out of reach for most Americans. There is a saying that the first $100K is hard. Well, the first $1M is even harder and only 8% of us will ever see a net worth of $1M and that is including home appreciation.

[@Shadow_Banned_Conservative]

@@jip230 Don't ever include your home's value in your net worth, it's a false sense of financial security and stability. A lot of people learned that lesson the hard way in 2008.

[@jip230]

@@Shadow_Banned_Conservative I don’t include phone value in my network but I believe the 8% does include home equity. Without home equity the number of millionaires in America just plummeted

[@gatordeen2528]

Erin, Another great job. Hope you feel better especially before Christmas.

[@Vasquez-t9k]

I recommend everyone to find the book titled The Elite Society's Money Manifestation, It changed my life.

[@rffinances8567]

The fact that Gen Z thinks they need that much income to be financially successful baffles me. Ther others, depending on the type of life they want I could see making sense. I really wonder what made them come up with that number. Though I also wonder if there was an issue with the suvey that gave them very skewed results. Those networth numbers are also really surprising. If I had a million dollars invested and used the 4% rule, that would give me $40k a year, a bit more than $3k a month. That would cover a frugal lifestyle. And while it might not cover everything I want, having enough money invested so I don't have to work to cover my needs is a pretty high up on the "financial success" bar for me.

[@angiepatterson6338]

@@rffinances8567 It’s because they piss away their money on luxuries faster than they make it.

[@angiepatterson6338]

@@rffinances8567 But they want their Omega and Porsche now!!!

[@Larry-yb7zl]

I teach my work skill set at a local community college as an adjunct. I am a late boomer and feel financially successful. I was able to switch to this PT employment and try to help other aspiring to do what I did. I've been doing this for five years. What I find is there are very few students who have any idea what life will bring them as their parental generation did not teach them basic life skills. The numbers in your surveys demonstrate their unrealistic financial expectations of employment. The number of students who are on some kind of medical plan or mood altering drugs for their "mental issues" is unreal to me. This is not something I ask them but I constantly hear, "i have a psych appt and won't be in class or I'm out of my meds" and need to go to the doc for a refill in their conversations. I would say that less than half are seriously interested in the subject material I teach and will never make a career in my field. They seem to be lost in life.

[@fdm2155]

I wouldn't assume everyone who is being treated for 'mental issues' as you put it, is some kind of slacker. I know it can seem like we're swinging from one extreme to the other. Seems like when I was a kid in the 70s nobody was treated or diagnosed. Now every other kid has a diagnosis. However, it's not like young people can't suffer from depression, ADHD, etc. That said, I wonder if their inflated salary targets are based on what they expect to earn OR what they think is a number that would bring financial freedom/security.

[@Larry-yb7zl]

@@fdm2155 To clarify, I did not assume anything. I stated my observation and their conditions are on file at the college as handicapped. It's not all students by any means but a considerable number. Instructors are given the list of handicap students at the start of each course. I'd like to also add that I do my best to accommodate all students, it's just the number of students who are enrolled with medical conditions on file is quite high.

[@Shadow_Banned_Conservative]

I'm a Gen X'er and the problem of not being taught basic life skills isn't new. Some of us were lucky to get that, others not so much and it shows in their decisions. But one thing you touched on was one that surprised me as well when dealing with today's youth in the workforce. Almost every one of my colleagues under 30 years-old will freely tell you all about going to a therapist or being on meds for some type of "disorder". It's almost like they feel enlightened for telling you they see a professional to sort through their problems. And I have a theory on that, it's that nobody today has friends anymore, they have social media. I grew up with people very close to me and we got each other through the hard times, death, divorce, relationships, finances, etc. Nobody does that anymore from what I can tell, at least most have told me they don't have anyone to talk to about the really hard things in life.

[@Larry-yb7zl]

@@Shadow_Banned_Conservative You nailed it. I had a student this year with autism and this was my first time trying to understand. Our class started at 7am. I usually got there by 6:30 and he was typically at the door when I arrived. Got the highest scores on the written work of all students and never missed a day. Would not acknowledge my "good morning" or look at me when I arrived. Spoke with the other instructors and counselor about it and "that's the way he is, he is autistic". I read about autism then tried something. Asked him to hang out after class for a one-on-one to discuss why he refused to participate in labs (too many people was his answer). We walked into the lab, he leaned against a table and stared at the floor. I walked to where he was, leaned against the table same as he did and stared at the floor. And we talked for two hours about all kinds of things and he participated in the conversation. It was crazy. He said he does not like being around people, did not know why he was at the college other than he would be kicked out of the house if he stopped coming. He told me he made more money pushing shopping carts at Home Depot than he could doing anything else, has benefits and health insurance and does not have to talk to people. After this talk, he repeated "good morning" to me a few times then stopped again. It was eye opening.

[@hunnybunny4306]

For young people, if income helps build net worth, isn’t net worth more important while income is just a means to an end? And a high net worth can produce high passive income, which is better than a high active income alone.

[@grega2362]

Nailed it. Wage income is ONLY a means to an end. If you make 200K and blow all of it every year, you will never be successful financially. The neighbor who makes less and lives within his means will outperform in the long run. Net worth is the goal, What you own - what you owe. After some time, what you own makes its own income.

[@Shadow_Banned_Conservative]

I think the problem is if you gave them that 600k salary that they'd spend it all and still not save anything. They'd rush out and live that life that social media told them to aspire to.

[@markmalloy3438]

Great video, Erin!

[@joewatts9132]

Income is career success (whether that be entrepreneurship or employee), net worth is what you would call financial success I think

[@floccinaucinihilipilifications]

🎄Merry Christmas to you and yours, beautiful Erin! ☘️

[@ErinTalksMoney]

Merry Christmas! 🎄

[@todd2456]

Erin - you went from 100K subs to 113K really fast - congrats!!

[@ErinTalksMoney]

It’s has been so quick!!

[@densnow4816]

Definition of success is key. For me, it means achieving financial independence by a reasonable retirement age. I am on track having income and net worth figures well below GenX aspirations.

[@keithc9768]

Retired Baby Boomer. SS and Military pension along with $1 million. Feel very successful financially. Don't want for anything and buy what I want when I can afford it. Live within your means people.

[@glasshalffull2930]

During the last few years of my mother’s life, it was costing over $100K a year for her care. Just something for people to consider.

[@renemontenegro6143]

I retired overseas with 1 million and live like a king

[@charletfoster8917]

Your motto on financial success is goal-worthy💯💵👍🏿

[@AndyTempleman-ot6lu]

People need to find satisfaction in saving and not just buying and spending.

[@angiepatterson6338]

@AndyTempleman-ot6lu Hogwash! I’m 22 and want my Omega and Porsche now!!!!

[@seans7513]

My income is fine, for net worth it is to be financially independent. Roughly having enough that I would be able to use the 4% rule to make enough to cover my income and pay for collage (in state undergrad)for my 2 kids. I am working on it ~25% of my income per year.

[@shawnbrennan7526]

I’m actually surprised that only 49% think they are behind their peers. Especially since 50% are in fact behind their peers.

[@kannermw]

What metric is used to define behind your peers. If median wealth then yes by definition it is 50% but if using average then it is much greater than 50%. Probably closer to 70%.

[@yvonnewong364]

Financial success for me: no debt (mortgage paid off and pay for new vehicle in cash), save 25-30% income toward retirement, live below your means, have enough cash for emergencies and luxuries such as vacations

[@DiFinni]

What ! I agree with her on the feeling successful part. 5.3 mill is high for Genx, lol.

[@dustin7708]

Getting to a 1 million dollar networth, especially without home equity is still impressive, even today.

[@livingunashamed4869]

3 million invested by 55, 5 million by 60 are my goals :).

[@aolvaar8792]

Retired at 50 on a $100K/yr Government Pension + Free Lifetime Family Healthcare, I'm past my Goals

[@shawnbrennan7526]

@@aolvaar8792 Similar. So, run the numbers and figure out what nest egg you’d need in order to replace that pension and health care. This guy wanting to hit 5 by 55 (depending on how old he is) might be more or might be less than your situation.

[@Chris-hr2uj]

This is a great goal. I have a very similar goal, and the crazy thing is, i personally dont think 3-5 million is even wealthy, i think it is simply enough for you to claim financial independence. You'd still have to live below means.

[@livingunashamed4869]

@@Chris-hr2uj Exactly lol the struggle is real

[@aolvaar8792]

@@shawnbrennan7526 The hospital sent a bill, $920K My former employer paid it. $365K, the next year, Paid What do you do when they say they want a $5MM Pre-pay?

[@NiranjanBendre]

Income does matter but net worth is essentially that should and would take over. Least would be 25x annual expenses but most would be 50-70x for a fatfire.

[@NewGuy2024]

I do not take young folks seriously about money until they have achieved most of their personal life milestones. Moving out, having a mortgage, managing all your bills, raising kids will be an eye opener for anyone when it comes to income, expenses, and savings.

[@angiepatterson6338]

@@NewGuy2024 You lost them when you said moving out.

[@shawnbrennan7526]

And they don’t take old people seriously because they cannot be bothered to look at the educational system, job market, and housing market that has been created. Stop pulling up the ladder once you’ve climbed up.

[@trackguy4038]

Can you do some videos on how you shop smart and make everyday wise financial decisions?

[@lovethomassowell]

I suspect that some of the high numbers for net worth are from our big problem - a lack of financial literacy. It was very rewarding to sit down with my 24-year-old son and do some modeling of his current income, investments, and savings rate using Boldin. We discussed how much he wanted to spend in retirement, when to buy a house, and how many kids he could get through college, and it was clear that he was on a good trajectory to hit his goals.

[@shawnbrennan7526]

And what did your calculations show he would need in his investment account at age 65?

[@marilynmontague6401]

Keep up the good work!

[@erickarnell]

My needed income changes so much depending on where I think I'll be living.

[@LaTonyas_Library]

I’m a frugal person so $80k is enough for me to spend, splurge and save plenty. I’d be perfectly content with that level of income. Currently bringing in ~$120k and it’s largely going towards savings. So long as I have excess I’d like to give more to charity. $800k invested would support my current needs. So I’d feel very comfortable at that point.

[@JasonBay-RealEstateInvesting]

I think $200K is enough to do most things without issue

[@tgunnarson]

Something I've recently learned: "What is a Pension Worth?" For the wife and I, each with a pension and SS benefits = roughly $2.9million equivalent (Annuitized Income and Optimal Equity Allocation) There are equivalence calculators online to check for yourselves. You may be richer than you think.

[@1dash133]

I hate to say it, but I watch these videos mainly to stroke my ego. Compare myself against other Americans. Yeah, I'm doing good! I understand that such an indulgence is self-centered. But WTH, maybe it is what I need right now, to feel good about my financial situation. 😇

[@Baiyoubai]

The benchmark for financial success should take into consideration of all of the above, and more. When talking about household income, is your household comprised of just 2 people, or a married couple with 5 kids? Say a family made $100k this year, but does it look stable in the foreseeable future, or is it just a one-off? A current net worth of $500k might mean you have $500k of assets and $0 debt, or you have $1M of assets and $500k of debt with an interest rate of 20%. Is your net worth steadily increasing, or do you expect it to go down drastically due to health issues, kids' college tuition, etc.? Location is also a factor; $X in California or Massachusetts may not mean the same thing in Alabama or Mississippi. Therefore, there cannot be just one single benchmark.

[@nilsalmgren4492]

Do you have a roof over your head? Do you have plenty to eat? Then you are more successful than most people in this world.

[@desiv1170]

I don't think of "success" as a lavish lifestyle... I think of success of being able to pay my bills, save for retirement, eat out at times, and have some vacations. We've been able to do that so far making less than those other numbers. (MUCH less than the Millennial one...). I'd think of those other numbers as examples of financial excess, not financial success. I actually think that much money probably comes with lots of other problems I wouldn't want to deal with. Never wanted to be rich... Just comfortable. But that's me. ;-)

[@trackguy4038]

Lack of health insurance causes bankrupty. Can you do a video on health insurance? My dad was a Fed and the dental insurance did not exist for Feds back in the 1970s and 1980s. I had braces twice. A hugh expense for the family.

[@daleholler8277]

Well presented ideas.

[@Donkeyearsa]

I am OK with what I have in assets already. I can retire now but I don't want to for a number of reasons. I am currently semi retired. I am in my early 50s and I could reliably live another 30 to 40 years and a number of things could go horribly wrong. The 2000 and 08 crashes make things just to scary as its possible that could happen again. I was given the sweetest deal from my employer. I am working part time but keep my full time benefits. Health care insurance premiums will only clime as I get closer to 65 and my employer pays like 95% of my healthcare insurance premiums. Plus I have a really good number of vacation days that I can use. If I wanted to take a nearly two month European vacation and burn away all of my vacation days I can and when I get back I don't have to look at working an entire year before I can take a micro vacation..

[@martyi398]

If the resort vacation or cruise you recently had taken was not photographed & posted on Facebook, Instagram etc. Did it really happen?

[@turbocfn39]

So true and very sad.

[@brownwhale5518]

Erin is digging deep to not 🙄 at these numbers.

[@michaelb1369]

There’s a difference between wealthy and comfortable. It all depends on lifestyle and cost of living. I define comfortable as able to meet short term obligations with little to no debt and some left over savings. I define wealthy as being able to quit my job and retire early assuming a safe withdrawal rate.

[@BK12310]

Being a Type I diabetic with high health care costs, as well as buying a home post pandemic, I fear my retirement goals will never be met.

[@tonymolina7744]

@ErinTalksMoney Murnin'! Can't wait to listen! 🙃

[@brandonblahnik6002]

I wonder if they used mean or median in computing the numbers in the survey. If they used mean, a small number of participants giving crazy high numbers could skew the resulting number. For example, if a sizable group of Gen Z participants cited a million dollars as the income necessary to be financially successful, this could push the resulting number up a lot.

[@KatieLibby1315]

I know my budget. Therefore I know what I need to "get by" and even spluge. It is well below $100,000 a year.

[@LivefreeLoz]

Hit 240k today Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in September 2024

[@AmirRezaie-d2h]

I would really love to know how much work you did put in to get to this stage

[@LivefreeLoz]

I will be forever thankful to you, you changed my life I will continue to speak on your behalf for the world to hear that you saved me from huge financial debt with just a little trade, thank you Jihan Wu you're such a life saver

[@GregFunnell-q9f]

As a beginner in this, it’s essential for you to have a mentor to keep you accountable. Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns

[@RichardArthurBaker]

His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.

[@IvanWilson-c5k]

I'm favoured, 90K every week! I can now give back to the locals in my communities and also support God's work and the church. God bless America,, thank you Mr Jihan Wu😊🎉

[@NotThatKraken]

I’d feel pretty successful if the annual growth in my investments exceeded my bills. Not needing a salary would be fantastic.

[@Larry-d1c]

I think the dramatic difference is based on what the word "successful" means. It's obviously subjective.

[@lberhold]

Enough that work is optional. It all depends upon the scenario. If the house is paid off, ~$60k living per year, so investments need to keep up with inflation + present value $60k. Assume 7% average return, 3.5% average annual inflation, so that leaves 3.5% to produce 60k. $1.72M would be the number for me (full formula is Amount = 1.72M * (1.035^(Retire_Year - 2024)).

[@brianadams6204]

The wife and I are at $137k this year we should break $140k next year. Guess we are considered middle class but I feel we are a little better than that.

[@StevenLeBlanc-z9f]

I don't think the Gens were thinking this way...but if we look out 40 years when they will be 60-70, and figure normal inflation, todays $1 million could very well easily BE tomorrow's $5 million, OR $10 million. We are very fortunate to be in a nation with a stable currency that is universally used, but when I was born, being a 'millionaire' was 'you made it.' Making $100,000 a year was an achievement. Now it's all, just...average. And that is how life is. Again, I didn't see anything that led me to think then Gen's were projecting (I would be thoroughly impressed if they were, but I don't think they are that far off, IF we do look 30-40 years down the road.

[@StevenLeBlanc-z9f]

And I also don't buy the criticizing of our young people. They are learning like we did by experience. Maybe life hasn't punched them in the face yet, but our young people will accomplish amazing things. And those who complain, "get off my lawn!" look in the mirror. Love our young people!!! Go get 'em!!!

[@philochristos]

For me, it's (1) a house that's paid off, and (2) $1 million to invest.

[@mikebridges20]

Rule #1: Live below your means. Rule #2: Set realistic goals Rule #3: Plan for your future by evaluating your present; you can't reach a 10M goal by having a 100k income. Nor do you need to. You need about a $2M goal, and that's achievable, OVER TIME. Rule #4: Patience is required. It takes time to grow your portfolio. Time, measured in decades, not years. You need to plan to work your full adult life, expecting to retire from work in your 60s, not your 40s.

[@brandon8531]

Erin, Am I the only one who thinks your question is 2parted?? Are you answering income, or net worth?

[@kannermw]

There is more to this story than household income but what household type the respondents represent and what they identify as peers. Some stats are difficult to verify but the number of dual income households is about 53% - 60%. Meanwhile the living alone single households is increasing and currently about 28%. That implies the remaining 12-19% are households with 2 or more individuals with single income. The other key point here is the choice to live alone is often a personal one with financial ramifications. The housing cost per person when living alone is typically much greater than households with two or more people. For example, a two bedroom apartment does not cost 2x a 1 bedroom because the common space does not increase by 2x. I find it interesting that more and more women are choosing to go it alone after age 50 and there is such a thing as "gray divorces" whereby 66% are inititated by women often resulting in a decline in standard of living by 45%. Yet they are the same ones crying wolf over wealth/income inequity. I say no it's simply your life, your choice.😂😂

[@matthewroth5062]

My goal is to retire with $3million; I am on track to hit that goal, since I've been saving since I started working. I am comfortable with my income - its high, but not $180k lol.

[@martywilliard]

Fluid investment $3 million or total net worth $3 million

[@matthewroth5062]

@@martywilliard the goal is $3mil inside the 401k, so excluding home, HSA, pension (shock, yes, I have one). I am in better shape than 80% of people my age. Yet its funny to say I'm only on track.

[@martywilliard]

@ I’d include your HSA. it’s a triple crowner as far as I am concerned !

[@Chris-hr2uj]

Foor a single person with no kids, I would say successful is $200,000 for a sustained period of time. It was $140,000 pre-covid but inflation has changed things. I would say $3 million - 5 million net worth can be enough to permit retiring to an easier job. Until then, its a tough grind.

[@wagon9082]

Good video

[@marcmakes1725]

If you make more than about $120K a year you make more than 80% of everyone else. If you make about $170K you make more than about 90% of everyone else. Stop complaining people, the rest of us below 80K a year are starting to get annoyed with your complaints.

[@davidboyd7494]

Successful. I know a man whose full income was just under $1000 from Social Security and he was entirely happy with his life.

[@Donkeyearsa]

Net worth is useless. Its always about monthly sustainably income. You could own a billion dollar item but unless you can draw an income from it its useless to you. There are ways not to have a single tangible asset but to have a great income. A pension is one of the best examples and there are others.

[@brucesprung6431]

I disagree that net worth is useless. If one has no debt this can really make a difference in the amount of net worth one has. It also will reduce the amount of income one needs in their expense budget. Money not used to reduce debt can be used to invest in assets to increase ones net worth.

[@moosejoose4]

good grief, gen z needs to cool their expectations

[@Brayco864]

Erin your looking very good / attractive on these recordings :-)

[@connclissmann6514]

This whole video could be simplified: If you're happy with your income / net worth, be happy. If you're not, don't look to this video to learn what to do about it.

[@dustin7708]

600K? That’s just insane. I’m a millennial, my wife and I gross around 180-185K a year and we are fine.

[@MilaN-lt2mq]

I live the life I can afford, not the life I want. Does that make me a failure?

[@Rob9mm]

Sounds like we have a gen headed for a massive let down

[@buyerclub2]

Given your financial position, and continual savings rate (still saving the other income?) dont you feel a little awkward making this video. I sometimes want to just shake people and tell them , "stop comparing", "live somewhat below your means" and invest and you will be fine. Still so many acuse others of their struggles. It gets somewhat frustrating to me. I suspect it does to you too.

[@robertd..17]

With these expectations, I forecast a lot of disappointment in the future for a generation of people. 🥴😵‍💫

[@appleztooranges]

New BM is hit $200k. 100k isn’t alot anymore in 2024

[@svanhoosen]

I wonder if the incredibly unrealistic high income expectations of GenZ and Millennials is a contributor to the very high depression rates of these same young people. If they won't be happy until they get an income that 99% of them will not get, they will never be happy.

[@Pje3ski]

Wow 500k annually. I would have retired in 6 years if I made that much.

[@angiepatterson6338]

Maybe they all can get that 600K a year by auctioning off their participation trophies.

[@glenn71144]

First, take care of your health.

[@aldaley3537]

Comparison to others is the thief of joy.

[@PaulSiu-t7b]

You need less than you think because when you retire you hopefully no longer have a mortgage, you are no longer saving 15 to 20% to retirement while SS can covered a good chunk of your retirement income. On the other hand, you also need more than you think because of inflation. In 2000 you estimated that you need $50k to live comfortably but in 2024 that would be $93k. This is where SS can help a lot to defer th eroding effect of inflation.

[@PaulGosselinsr]

With less than .5 $m in investments and completely debt free, with $4k a month in SS coming in every month, we’re very comfortable. I think a lot depends on what “things” a person “needs” to “feel” comfortable. Merry Christmas Erin.