How to Recover From 4 HORRIBLE Financial Mistakes!

How to Recover From 4 HORRIBLE Financial Mistakes!
Jump start your journey with our FREE financial resources: moneyguy.com/r...
Reach your goals faster with our products: learn.moneyguy...
Subscribe on KZbin for early access and go beyond the podcast: www.youtube.co...
Connect with us on social media for more content: moneyguy.com/l...
Take the relationship to the next level and become a client: moneyguy.com/w...
Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[@JakeSpradlin2]

Client 2 is one of my favorite money guy stories! I’d love to be a fly on the wall when Brian called the insurance salesman 🤡🤡🤡

[@curtisdavis8594]

Fantastic advice...don't let Leverage or politics change investment strategy.Thanl You?

[@alextemus]

Fabulous show idea! I'd love to hear more of these examples. I think this is partially why the Ramsey show thrives is it gives more of the human component to finances.

[@Mike-zf7lo]

0:01 Find someone who looks at you the way Bo looks at Brian when Brian gets animated about something.

[@lindacgrace2973]

My Daddy told me: When they can't dazzle you with their brilliance, they'll resort to baffling you with B.S. You are an intelligent, well-educated person, if you don't understand the proposition, RUN! It is never a good thing not to understand your investment.

[@josephjuno9555]

I am more like Her! I am 61 single no kids, don't need to leave LG Legacy. I had an advisor that had me living on only Soc Sec and Pension whole he had my IRA Grow to $2 Million? WtF? WHY wud I want to eat gruel like scrooge w $2 million in the bank! I want to Travel and enjoy Retirement I worked hard for this money! Btw, his fee comes from the part that wud reach $2 million! Nope, not going w that plan!

[@JacksonMiley-iq7mo]

I looked your adviisor up and I think she's great. (Kathleen Carole Yanelli)

[@michaelwoods4495]

Those annuities have managers who do only what I can do myself, and I don't charge myself for it! Of course, it helps that I've been a CPA for over fifty years, but anyone can learn the same stuff about investing. A good place to start is with you guys and Dave Ramsey. You're good!

[@Lucky008aau]

For example 1: 4% withdrawal rate vs 8%, it would have been nice to see inflation adjusted withdrawals after the first year. I'm sure the result is mostly the same (the one who pulls out less has a lot more in the end than the other who ran out), just less money for both over time.

[@matthewsawczyn6592]

6:00 To live off $80,000/year and to _gain_ money is incredible

[@Lucky008aau]

Check out the Trinity Study. There are four tables that show withdrawal rates and ending account balances (as multiples of initial investment, for both steady and inflation adjusted withdrawals for multiple stock/bond allocations) for rolling periods back to the great Depression. It's where the "4% rule" comes from. The 4% is "safe" but for most retirees too conservative, but you won't know that until many years into retirement. They also didn't increase withdrawals to inflation. So in reality, he'd probably be around 2 million, his starting amount even though he's taken out 1.8 million.

[@17h127]

First XD. I've made a few financial mistakes. Mostly poor investments. One I knew was bad going in, but I wanted the experience and to rub shoulders with people in that field. While that investment lost me 4k, I gained knowledge and partnerships that have made me many times over what I lost to aquire them. A second mistake was being a secondary lender on a property where the investor went bankrupt. That was painful. Don't do that lol. Aside from that, it's thankfully mostly been poor stock picks, but at least I can use those for some loss harvesting. Thankfully most of my choices have been solid, some outdoing my expectations to the point of being able to retire in my late 20s. Many of the choices people told me were mistakes were not, like BTC and I Bonds. They just weren't doing too hot at the time, but look at them now lol. Mistakes are a part of life. Just don't put all your eggs in one basket, and do not count them before they hatch.

[@michaelwoods4495]

I sympathize with your $4,000 loss. I lost $400,000 trying a Meineke franchise. But you pays your money and you takes your chances!

[@susanclaire901]

I enjoy your videos so much! I inherited a small-ish amount but I invested it for my retirement, no crazy purchases.

[@VariationsOnASeam]

I always get upset when I hear people lost their money by helping family.

[@ImVeryBrad]

I feel like most situations they are taken advantage of by family. It's so weird how money can change people. For me personally I don't care it was never my money to begin with. It can go anywhere

[@LuisVelazquezLV3]

One of the biggest mistakes I have ever seen, someone before retiring liquidating their traditional 401k to pay off their mortgage. Another big mistake I have seen, is someone have a 457b and it's invested for nearly 40 years, but in a stable value fund. I cannot confirm or deny that this is the same person or people in the same household.

[@ImVeryBrad]

I've heard of someone doing that as well. They couldn't access their retirement until a certain age so they got pissed and withdrew it all and lost 50% of it

[@LuisVelazquezLV3]

@@ImVeryBrad ouch

[@gmk22799898]

That really sucks and highlights the importance of having quality financial advice.

[@evardmuts]

One valuable thing I learned from high school econ class is " There is No Such Thing as a Free Lunch," I always gotta know what they get out of this.

[@brickpub]

2000 was probably the worst year in history to retire if you're living off investments, so I guess it's good they use a worst-case scenario for their model. If those two had retired in 1994 with 2 million they both would have been sitting pretty 23 years later, with #1 at 8.4m in 2017 and #2 at 3.5m. So there's a lot of dumb luck involved with timing your retirement.

[@xaldath4265]

"Dumb luck". There is some luck, no question. But there are counter-intuitive trends for safe withdrawal rates. For example, if you hit your target portfolio size due to a +25% year where the market hits all time highs, you are significantly less likely to have a high safe withdrawal rate...because you're starting at a peak. If you hit that peak, let it settle, maybe wait a year, then, if you're still there, go ahead and begin drawdown.

[@Lucky008aau]

1966? 1929?

[@anniealexander3402]

I'm afraid to take on risk right now. I'm saving an emergency fund. I usually don't feel the need for one but with the current environment, it sounds reasonable. My bills are minor. $87 light bill, $52 water and trash bill, $76 for groceries. Easy week!! It's usually hard for me to let money sit. I set up a treasury direct account but it takes a month to link my bank account. 😔

[@soulman888]

Oh hi MGS! How very timely of you! You must have read my mind.

[@MoneyGuyShow]

That is Daniel’s skillset- we just listen 😉

[@paulbernitt4280]

Good stuff. Just need to add in social security dollars kicking in at some point. Imagine the 4% guy cutting withdrawals from retirement savings in half and the 8% gal reducing her withdrawals by $40-K per year once SS kicks in. Certainly, the gal will not grow her dollars like the guy and will run out of money but could extend her retirement for several more years. Certainly, the 4% option is the way to go for growing eternal wealth and not running out of $. Knowing the numbers that matter in retirement is the key to building not only enough for yourself but also eternally for those you love the most.

[@DesiderataTruth]

Social security money is neither exact nor guaranteed--outright benefit cuts or de facto cuts through raising the full retirement age will happen. Never plan your retirement around social security.

[@dolevmazker736]

I loved all the client stories. Its a shame about client number 3 tho...

[@christinab9133]

Great episode!

[@AndrewOjeda]

Great content! Thanks for sharing these stories!

[@TruthSubjective]

Thank you

[@melvinbarnes6652]

Question. If a portfolio earns 8% one year and is negative the following, can you withdraw 8% in the first year, nothing in the year when it's negative, and still have a portfolio that last your entire life?

[@letsdothis3332]

I didn't ha e a mistake but my partner had a massive heart attack and 5 surgeries with a lot of complications afterwards. We lost just about everything how can we recuperate after such a financial deficit. He's 68 and I'm 57? Lease help

[@anaestereo810]

Buying 2 pizzas for 10,000 bitcoin was a terrible financial decision

[@josephburton3232]

Never change, Bryan. I loved your George Bush joke!

[@babycomo]

Ooohhhfff that 8% withdrawal rate is definitely a stare down at DR 😂😂

[@neoloaded]

01:32 - Client A: Spent with reckless abandon 11:03 - Client B: Bought financial products from the insurance agent at Chick-fil-A 20:51 - Client C: Got rich and kept running the score 26:50: Client D: Let CNN and Fox News manage your portfolio

[@agriffin5308]

It's called seed money! Do not spend with in that realm. Seed money is invested and grows money so you can live off it.

[@GT-xw7qy]

Cool segment.

[@kyleolson9636]

I'd be careful not to say Ryan from story #1 has more money today than in 2000. His savings have dropped 11% adjusted for inflation. Leaving that out also makes me feel your projections may not have accounted for inflation, since Ryan would be withdrawing $144k in 2023, not 2000.

[@Austin-fc5gs]

Their projections don't typically include inflation. Just do it yourself and subtract your estimated inflation percentage

[@tonycrabtree3416]

2 million in cash in 2000 in a bond fund would be giving him 60k+ without touching the original principle ever. Granted, the value would go up and down, but those bonds still pay out. In fact, they are paying out at record highs right now for the 2000s. :) Also, if anyone retires, what's the first advice? Put most of money in something "stable". It's a bad example.

[@Jack-fw4mw]

you have to be careful when taking inflation at face value. As a retiree, his consumption is going to look very different from someone still building wealth. As such, he won't be as strongly impacted by fluctuating gasoline prices, home values, education (which is primarily university at this point), and if he is eligible for Medicare; Health Services. Also, while the cost of electricity has gone up considerably since 2000, most appliances are much more energy efficient.

[@fabiohill14]

In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.

[@williamrobertson6380]

there are many interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares, stocks or ETFs you want to acquire.

[@Essays4College]

You can know your number all you want. That doesn’t mean that you’ll have t he ability to make enough money to get there!

[@ericdahl2915]

Mistake: Telling some "nice man" at Chick Fil A how much money you have

[@ihaveadreamformykids4400]

At retirement, I wouldn’t want to be at a higher tax bracket.

[@peternguyen1911]

The FOO can save lives, but it can take a life too

[@calminacrisis126]

Can someone explain the beer koozies to me?

[@Austin-fc5gs]

They take the value of the beer when you're 21(?) and compound it until you're 65(?)

[@bossman696]

Basically saying if you had invested that $1 instead of buying the beer, it could have been worth as much as $88 when you retired.

[@ImVeryBrad]

I wish I could find $1 beer haha

[@jonheredia8789]

Jehovah witnesses hang out there also trying to sell salvation 😅

[@Bacciagalupe]

: )

[@djee02]

Ironically, W takes the L

[@DesiderataTruth]

Missed the obvious...W was the only president whose economy took an L.