The 3 Ways to Secure Your Financial Future And Retire Well

[@MakingMoneyPodcast]

Hello! We’ve put something together for you - a free guide for beginners that shows 80% of what you need to know about personal finance on 2 pages. You can get it here: makingmoney.email/80-guide-video

[@davidbaker4614]

Another great video and guest guys. Just a quick concern highlighted by your guest, is that most don't know what workplace pension scheme they are on. I'm in NEST and changed to their sharia 100% assets. Recently they informed me that they were changing it so I am 30% in bonds. I'm so annoyed, as I had no choice in scheme other than selection. I'm worried the government is already forcing 'financial repression' on pension holders. I would love it if you could look into this? It'll potentially reduce our future returns

[@daveuk1324]

I am 61, retired at 57 after a career in tech (small startup plus big corp) and I can genuinely say, with the benefit of hindsight, that there is great advice in this episode that is well worth following. So much better than the Diary Of A CEO recent podcast that advised everyone to gamble on Bit Coin for easy wins! Great job yet again Damo and team!

[@spacebadger99]

George is a realistic planner and doesn't sugar coat the pill, great to have him on your side.. good episode, thoroughly engaging.

[@martinsykes9904]

Something I've really realised recently as I approach retirement is how having only one earner in a two-person household is so tax-inefficient - I've paid higher rate tax when my wife has paid no tax, I've earned a full state pension but we're having to top-up my wife's pension with my taxed income, she's had no employer contributing to a pension and when we retire early, there is no source of income which will use her personal tax allowance until the state pension starts. I think it would be interesting to see a podcast on what couples can do to save better together

[@james2450]

Agreed with doing a show on this topic.

[@xman7695]

That would really be interesting! Not only that, it's probably pretty important for women as well, since it's also good to know how to make themselves more independent in case something goes wrong. There's a German podcast that has it as a main theme but I haven't found an English one yet.

[@David-yr8yt]

Yes please!

[@davidr7819]

I’ve inherited a decent amount at 59 years old. I won’t be able to take much advantage of compounding but I’ve been able to pay off mortgage, boost pension, max out 2 isas. I feel in a very different place financially than ever before

[@noza2003]

Congrats on the good fortune. Even though you feel you can't maximise returns, the savings on your outgoings will have similar effects. The amount of freed up cash you now have by not having a mortgage alone will allow you huge opportunities!

[@Willsmith-q2v]

Always top guests … you must be looking at my KZbin favourites list….. been here since the start buddy … brilliant channel

[@sweeneyud3396]

when he talked at around 9 min it really hit home.... I respect it.

[@JayLou-v9p]

Just said the same thing. Prob why we are known as the forgotten generation. Yet it the MOST important subject for us as we are the next ones to get there.

[@Sam-np4oc]

Love this podcast boys. With so many out there, this one is the one I enjoy and learn from the most. Thanks for putting the time and effort into making these.

[@geeman6274]

My favourite episode so far, George Agan, talks my language. I'm in a position to stop full-time work before my 42 birthday (less than 18 months away). By putting into practice everything that's spoken about on this show, and because I also work on my health. I will likely be able to enjoy my "time" for many years. Keep up the good work, thanks for the amazing content.

[@szabolcstrucz2220]

that is an achievement

[@geeman6274]

@szabolcstrucz2220 Thank you!

[@TheBoringInvestorMan]

Big fan of this episode, a lot of what was said resonates with me, I'm 37 and only just recently in the last 2 years took a serious look at my finances and for the first time really looked at my future in terms of retirement and investments, I have moved away from the default fund and in the last 12 months it's almost doubled, I also invest into a global index fund every single month without fail, I do still have those thoughts of "man I wish I would of started sooner" but you know what they say about the best time to plant a tree. Thanks for people like you guys who take the time to talk to people like George and ask the important questions, you guys are making a difference to young people like you wouldn't believe.

[@Banor]

Just a gentle reminder that pensions were hard fought and hard won by socialist and trade union movements. Benevolent factory owners did not willingly start agreeing to pay pensions

[@simonnewman4240]

Yes George! Good to see you on here! Great video

[@hachimaru295]

Hugely influential guy well done ,all great pod

[@JayLou-v9p]

Boomers genz and millennial again. I seriously am in the forgotten generation. Gen x. Only 47. Got 20 years left. Don’t forget us please.

[@JayLou-v9p]

Do love u guys. Hate being negative. But my generation seems to never be spoken to. And we have less time. It’s more of an emergency for us. I only started putting into pension at 30 (at the minimum, when auto enrolment started). Which meant by 40 (ten years later) I had only £56k. That’s fuck all. Only in the last two years I’ve started watching financial podcasts. Starting on Ramsey. I’m now putting 25% into my pension. Feel lucky I can do that. 47 single no children. But I’m scared.

[@hachimaru295]

@@JayLou-v9p make sure your not in a deadbeat default fund and ull b fine A global divesified fund is all you need set and forget but keep contributing to compound it

[@Boghopper9999]

Always have to laugh at how the conversation is always about Boomers Vs. Millennials and Gen Z; it's like Gen X don't exist

[@hachimaru295]

Gen z are too busy forming queue up in pubs so I believe

[@dafruk1]

Early X, see boomer. Late X, see millennial but without auto-enrolment.

[@Boghopper9999]

​@@dafruk1 You literally just demonstrated my point 😋

[@dafruk1]

Should have added - I'm also gen X and for this financial conversation I think that is a fair rule!

[@Phil_AKA_ThundyUK]

Gen Z need to stop moaning they're young enough to do something. Gen X and older don't have time to fix their finances

[@steve6375]

Great video. I would say the one thing that most young people can do now, costs nothing but yet will make them £100,000's richer, is to look at their DC pension scheme and understand their options (e.g. look at some of your previous YT videos on pensions). Young people don't seem to understand that pensions are investments, except that someone else (probably driving around in a Porsche) has control of your money for over 40 years before they give you back whatever is left!

[@ivaylokapitanski6610]

Brilliant guy! Thank you for that talk.

[@Abdul_Rahman86]

Investing is not a choice it’s a necessity. Delayed gratification is not a choice it’s a necessity. My idea of wealth is a portfolio of dividend index funds totalling £1 Million.

[@JayLou-v9p]

Can we have an expert aimed towards Gen X please?

[@nickd1973]

Definitely this

[@rfjones2578]

Yes please

[@johnwilliams8869]

This guy is brilliant. ❤

[@EmmaCruises]

Love George! 🎩

[@jonathanhowe2652]

Excellent excellent excellent thank you 🙏

[@dumbguy1007]

My approach to frugality is that you need to just have a real think about the if the value of something to you is worth it's cost. If you truely value the holidays and pets and eating out and whatever luxuries might be holding you back, then great, buy that thing. But a lot of things are done automatically and maybe aren't giving you the value in enjoyment that either something of a similar cost could or a better retirement. You just need to assess these things and not sleepwalk into lifestlye inflation and other ways that might be holding you back. I personally enjoy a simple life and am not interested in travel, holidays, children or cars so i can reallocate my resources to the things i enjoy, security, stability, my home and not having to push myself in work for the next pay rise or promotion to keep up with my spending.

[@kw8757]

Excellent episode, great guest.

[@Simonpocarroll]

Not sure if it’s generally available , but Barnett Waddingham just published some great work they’ve done on the state of pensions and the results are indeed shocking.

[@binitamin4727]

Its monthly expenditure times 375, not monthly gross income.

[@justrobin1234]

I was wondering why it seemed so high. This makes a lot more sense. Cheers.

[@jordirolink8254]

Was wondering this as well, cheers!

[@Richard-fm1cx]

I’m a big fan of the incremental pension increases of 1% each time you get a pay rise (although I don’t actually do it as I mange my pension contributions differently!), but I’ve “made” my partner do it for years, and now her total contributions are 26% of her salary.

[@VikashSingh]

Can you build and share some tools for Pension planning.

[@RIJKAARD1981]

Good guest.

[@Matty95rufc]

Good episode

[@charmcrypto824]

This was super helpful! Starting early is definitely a game-changer. Just started adding crypto into my retirement savings through My Digital Money, trying to see if it’ll add that extra growth over time. Curious if others are trying out crypto in their portfolios too?

[@TMZ-5jr]

salary progression is much quicker now. Household income, dual incomes much higher. With planning you can retire much earlier in your 40s. Not need to wait around until 65.

[@robertpearce7795]

I'm interested in becoming a financial advisor, but one of the things that concerns me is the regulation around giving "recommendations" - I like to talk about stocks that I've analysed or that I like the look of, and I wouldn't want to have to stop that - So I'm wondering if there is some happy middle-ground where I can talk about particular stocks or products, but do so responsibly, within the bounds of financial advisor regulations?

[@LynSarayan]

Hi 👋 there, We had patient once over 100years old can walk with walker.🚀 Life is getting longer . Forget inheritance. 🎉

[@K3NN3H1]

i knew that 1/2 sources of retirement wasnt enough anymore a few years back. invest in NS&I / index fund Stocks & Shares / Lifetime ISA ontop of the standard 2.

[@ONeill01]

Please get Andrew Murray on!

[@leestorm5640]

Thanks, top my man's

[@therangemen8627]

18:33 its 72p not 78p

[@simonharrywood]

Was the 375 multiple off Gross or Net monthly income? Great podcast BTW.

[@jordirolink8254]

Gross

[@roblowry9457]

I'm pretty sure it's me that George refers to as posting on his KZbin kicking back against the PLSA Living Standards 🤣They took a massive jump this year compared to last year, far more than inflation so it's great for them to put a stake in the ground, as long as it not pegged too high as to be unrealistic.

[@pmason6076]

Did he adjust the median earning each year or did he plot £31k each year over that time span? That would make a difference. The median salary to notch up over that period too. He didn't specify either way so its unclear.

[@johnristheanswer]

The retirement living standards are a mess. They suggest someone needs MORE in retirement on a Monday than they did when working ( last Friday ).

[@MrSpacepauls]

Look at us pretending that the gov isnt going to ransack everyones retirement pots soon.

[@Adam-jx3ju]

I am self employed, I earn good money but not don’t have a pension I contribute to. I do contribute to a crypto account & index funds. Should I be doing more? Thanks!

[@ginabates8445]

Yes get yourself a pension and spread your funds

[@davegibson79]

This may be good advise if you're earning £50k p.a. and you're paying off your mortgage. The median wage is £37.5k. A decent pension pot that will survive even the rate of inflation in the cost of living we've had over the past four decades would require you to be investing at least £10k a year of your salary into a pension that you may never see due to death, or due to the scheme going bankrupt, or else would be wiped out by hyperiinflation if that occurs (which it is very likely to in the next twenty years). You need to invest money into things that increase your earnings now, such as rental properties or stocks bought when the market was low, otherwise you're not going to be able to retire and that money you put into your pension would've been more productively spent elsewhere. The average person cannot afford and pension and should not be putting all their eggs in one basket like that. You need to won productive assets that are as protected as possible from inflation, fraud, government attack and others going bankrupt. Private pensions are for the rich. Spend the money getting a useful skill that you can profit from in old age, if necessary, if you can't afford rental properties.

[@TheMagicLemur]

19:45 on buying time. I heard Alex Hormozi describe how "Money = Bottled time" the other day... and now can't stop thinking about it. 😅

[@carlyndolphin]

If someone reading this is 25 years old and they want to retire in 25 years time, then surely you’d multiply today’s monthly gross income more than 375 due to the fact that in 25 years time everything will be double the price? Let’s assume someone’s monthly gross income is £4,000 today, in 25 years time they’ll need £8,000. So £8,000 x 375 = £3 million nest egg. Maybe slightly less if their mortgage is paid off.

[@charlesbrown4941]

The fact this channel only has 33,000 subs says a lot about modern investing trends… that don’t work.

[@jamiefarrell4425]

Again, talked about care but not made mention of the fact that you can put your estate in a trust which means you can’t be forced to pay for care.

[@polkadotshillor]

Literally everyone will fall short on their pension, because by then care home will be £4k a week

[@kalpnashah4030]

What point in saving as they added death tax on pensions now ! This gov hates old pp

[@utterlee]

A pension is to save money for your own retirement, not for handing it tax free to the next generation.

[@screamingwheels98]

I don’t agree with the perception that boomers have it better than millenials, Gen Y and Gen Z will have. If you consider outcomes being a function of when you start, how much you save and where you invest then Gen Z in particular will start sooner, are being educated to save more and where to invest for better returns. Whilst state pension age will go back, as you say it’s relative to longevity. DB pensions are a factor but only 48% of boomers now aged 60-63 have access to a DB pension (and I imagine lots of these work in the public sector where DB pensions continue), with 38% of the boomer population set to retire beyond current state pension age (Source: FT Adviser article on Dunstan Thomas survey, published March 2022)

[@JayLou-v9p]

Don’t you see who is not talked about. Gen x? 44-58.

[@Bigscale9783]

First thing need do what know one taught me is invest 10k in sp500 or something that goes up 10% a year average and then forget and leave it to compound over time as soon as you possibly can. Do not buy liabilities that take money out your pocket eg: Car, House {unless is a rental and you rent rooms out to cover your bills and mortgage. Buy assets dividend stocks sp500 something that goes up and pays you for buying it and not loses you money.

[@hachimaru295]

Personally I think its better in ur pension compounding every month with more added rather then a one off 10k subject to cgt and possibly div tax outside the protection of a pension or isa

[@Marenqo]

Pension? Saving? Hobbies of the rich and powerful

[@Marenqo]

@SevenEllen indeed, having a pet, like a child, will soon becoming a luxury as well

[@Arghans]

For many millennial’s and the idea of a frugal life for a later retirement; we have seen our grandparents with more money than they can spend and the tax man ends up the main beneficiary. A sad waste that they held back too much.

[@velogoo]

Bit confused by the rule of 375 thing. Does your current age factor into that? e.g. if I am 50 now and have £750K in the bank and need £2K/month am I good to retire straight away? In other words how long would it be before my £750K was all gone? Does the rule take into account state pension and personal tax allowances? I think the guest mis-spoke when he said it takes 20% inflation into account but if he meant taxation then surely in the £2K/month example, roughly only half or possibly less would be taxed at 20%?

[@MakingMoneyPodcast]

The 375 rule is used to estimate for a 30-year retirement.

[@peter.hollis]

375 rules is based on net monthly income. So, the £2K is net (after tax). It is basically the 4% rule but it uses 20% tax rate so you can calculate using your take home pay. This makes it easier as a rule of thumb. So, all the limitations of the 4% rule apply to the 375 rule. The is, it is only a 30 year retirement timeframe, was based on US stock market, and assumes you have zero capital at the end. So, great for a rule of thumb as to how much you need but would not base my draw down strategy on it. And does not take into account other income streams. So, if you want 30K gross per year you need £750K of pot … but if you believe you will get a £12K state pension then you only nee a pot that generates £18K (450K pot). But this is all very high level … does not consider end of years costs, kids weddings, help with house deposit. So, at some point you want to cash flow model to work out if you have enough. But the key is to start saving at a young age.

[@GeorgeAusters]

In 2024 to retire comfortably - you probably want a net worth of around £1 million.. In 40 years time, you’ll want a net worth of at least £5 million

[@bigboldbicycle]

7:15 Sorry, using income as the starting point to estimate how much you need to have is stupid. Stop using income as the starting point, it's all about expenses. You may earn £200k (sorry I know you earn more than that) but only spend £30k a year. So why would you need x times £200k rather than x times £30k?

[@HazzyWazzey]

It’s a depressing outlook no matter how you sugar coat it. Workers have been royally shafted and we’re all trying to operate the best we can in a broken system that doesn’t serve us. It’s the very lucky/privileged that have a decent shot of having a comfortable retirement, which is unbelievably tragic and a huge regression.

[@michaelatkinson7577]

A pod full of contradictions. "Don't be frugal" (spend it now and enjoy it), but "work with an eye on the endgame". Frugality is very different for everyone, buying gold watches is some peoples bag - to others it is a complete waste, buying a take out coffee - fine if you are happy paying £4 for instant gratification - or take a flask - very untrendy (maybe an aeropress to make it acceptable to the masses), - but will save you a huge amount. Learning to be economical (lets rename frugality to something else acceptable to the presenters) at an early age avoids the need to actually earn that money you blow on coffee and watches, and is a real skill to be developed. Realise what actually really matters to you, what you need, and not what the marketeers tell you you should.

[@ADHDNurse79]

What am I if born in the 70s?? 😂

[@kw8757]

54..ish.

[@torabian02]

If you were born in the 70's, that makes you an old f@rt. You are very welcome!

[@danielmerrell8926]

this advisor is not looking at the average person most people are trying to not go into debt each month people can't afford to put the pay rise if they ever get one aside.

[@scotdoc]

Gen zed, not gen zee 😅

[@christopherdavies8839]

Hilarious chat about live now generation and their work later for fun idea to cover shortfalls. Big problem your body doesn't always last as well as your gym membership 🤣 the amount of mature 40+ young parents I see now panicking as they've left everything to the last two decades of their full working life is scary. Suddenly they're gambling on high risk stock returns as they've not saved enough early on. Can anyone really pay a mortgage off and bring up children to adulthood in their 40s? I see no empty nesters into their 70s

[@dddddbbb]

Are you factoring in the tax you pay on the pension when the money is paid to you later? And you are presuming markets will keep growing as they have done (with countries maxing their debt over the last few decades) which is just unsustainable in my mind. And the age you are even allowed to take your pension is not under our control.

[@peterwatson3944]

Bull sh!t there were very few jods for life in the 90ths ,apart from civil services. In construction, I had to move from job to job, not knowing where the next pay package was coming from. Millions of others were doing the same. No pension scheme here.

[@theoceanman6221]

4:00 your model has them at the median salary their entire lift, this will never happen as you'd expect to be paid more later on. Very inaccurate and all conclusions are too.

[@carlmeanwell9180]

Another insurance salesman?

[@wl660]

Insurance, all of it, is a scam. Don’t waste your money.

[@velogoo]

No it isn’t

[@Rothargar]

You're tapped

[@tsangyman]

Say that to someone in private healthcare getting heart surgery, cancer treatment etc, can cost hundreds of thousands. Rolling the dice, relying on the NHS. Good Luck.