Money Expert Reacts to Viral TikTok Finance Advice

[@aas55]

The immediate eye roll when Grant Cardone opens his mouth 😂

[@josefj1776]

Grant doesn't even know what the 55 rule.

[@PerformanceCarHQTV]

Grant Cardone is the typical snake oil salesman. He might be right this time. But wrong about almost everything else.

[@Kornheiser10]

Cardone is correct on this rare occasion...but let's be honest, so is a broken clock twice a day.

[@darbymori350]

Also, you only get taxed on the amount you withdraw that year, not the total amount in your 401k. If you only withdraw $100k, you only get taxed on $100k. The withdrawal is counted as income; if you have less expenses as a retiree (paid off house, kids already out of college, less mouths to feed, etc.) you might withdraw less 'income' from retirement than your earned income from a job a decade previous. Lots of variables to consider.

[@TonyCox1351]

Guy could have defeated him by uttering the magic word "Roth"

[@Kornheiser10]

@@darbymori350 true, but someone will pay income tax on it. They're not very good means of estate planning, because the person who receives it often is in a higher tax bracket. Better to leave Roth or regular taxable investments because your heirs get stepped up basis.

[@Kornheiser10]

@@TonyCox1351 that guy didn't seem to know much about what he was taking about in that snippet

[@AStockTradersJourney]

LOL! Facts though!

[@sidehustlevikki1066]

Ramith I can’t wait to come to your book tour in Chicago! Got my tickets and I’m so excited to be in a room full of like minded individuals! Your teachings on finances and budgeting has been the only one that has stuck with me long term. My finances have done a complete 180 and I’m super excited about what I can accomplish if I stay on track! See you in chi town 😊

[@ramitsethi]

See you in Chicago!

[@JaredHoutsma]

"Grant Cardone accidentally makes a good point" LOL

[@mykidsaresupercute]

Glad to hear we agree on the car thing. I like to buy last year’s model in January. It’s still a new car, maybe a few hundred miles from test driving, but the dealer will give you discounts on it. Then I drive the car for 15 while saving money for the next one.

[@Trix897]

@@mykidsaresupercute that’s how I roll as well. I buy Certified Preowned Vehicles instead of new. My current vehicle is 8 years old and still works like a charm.

[@KayLynnWight]

I absolutely agree on the new car purchase. I have had my car 10 years so far. I know that I have had the regular maintenance done on the vehicle. I was burned several times on used vehicles.

[@JustSomeRandomGuyYo]

I think a lot of that has to do with how knowledgeable you are on cars or if you have a trusted mechanic you can get to inspect it. I don't know anything and I don't have someone I trust so I also am in the mindset of buying a reasonably priced new car and keep it as long as I can. My current car is a 2015 Honda Accord and I have no plans on replacing it anytime soon, but I do have a sinking fund that I consider my new car / car maintenance fund. Once maintenance becomes too costly, I will use that fund as a down payment on the next car (or to buy it outright, that depends on how long my current car lasts and what interest rates are at that time).

[@Yulia-hc7dr]

Renting might be sensible advice for the US, but it doesn’t necessarily apply to the UK. In the UK, tenants have minimal protections-no-fault evictions are common, and many landlords fail to maintain their properties adequately. Essential repairs, including heating during winter, can often take weeks to complete. So while renting might make sense in places like New York, it may not be as practical in other contexts. I wish Ramit made that caveat explicit.

[@rebeltheharem7028]

Well, considering all of his videos are intended for people living in the US and not the UK (probably 90% of his audience is in the US), I don't really see why he needs to. I also don't see why he would need to learn UK real estate laws either.

[@Trix897]

Since this is a very US-centric podcast, the caveat for a UK audience makes no sense, considering who his target audience is. Personally, I ran the numbers when I bought my flat in the Seattle area, it was cheaper to own, even with the phantom costs. When I bought in early 2021, I was saving $500/month over renting. That difference has grown to $1,000 per month, due to the market for flats being soft back then and interest on a 30 year fixed rate mortgage being less than 3%. If I was thinking about buying now, there’s no way that I would do it, since buying when considering repairs, maintenance, etc. along with PITI would be more expensive than renting. He’s never been against buying…he’s against blindly following the societal norm of “having” to buy a house in order to be an adult. He has said in other videos simply to run the numbers in order to see if renting or buying makes sense. He’s never been anti-home ownership; he’s been pro-EDUCATED home ownership.

[@sarahb8073]

10 years ago I rented an 700 sq foot apartment for $3200 in NYC and I could see the street through a crack in the wall. We asked the landlord to fix it and he basically stuffed it with that puffy yellow stuff that doesn't do anything to insulate. Landlords don't maintain stuff here either and NYC has some of the best renter rights in the country. Would still be a better deal than buying there though. NYC is out of control

[@coreyburke3493]

His main point isn't not to buy, it's to actually do the math and make sure you're making a good choice. So it would still work in the UK you would just have different variables to include when doing the math to see if you want to rent or buy.

[@Yulia-hc7dr]

@@rebeltheharem7028 I’m not sure about the exact makeup of his audience, but he frequently appears in interviews with UK-based KZbinrs, who primarily have a UK audience (that's how I discovered him). His book has a special edition for the UK and I think is a bestseller here. While he may not need to single out the UK specifically, it would be reasonable for him to include a caveat that his "rent, don’t buy" rule is advice tailored to the US and may not necessarily apply in other countries.

[@Tomt13241]

Awesome video! We love your help and information! We make all our kids, nephews and nieces watch your videos! 👍🏻🎄👍🏻

[@NomadicLifer]

I've been putting my increase into my 401k every year for a decade. We are set to retire in 10 years at 45.

[@mrmistmonster]

At a party a year ago a friend told me their goal was 2 million dollars of mortgage debt. When I reacted with shock they asked how I invested money then. "Index funds, bonds, anything else?"

[@coreyburke3493]

Sounds like he's on the Robert kiyosake plan lol.

[@themusic6808]

Your friend sounds like one of the many lost disciples of Robert Kiyosaki lmao Hell bent on borrowing money to buy assets, then leverage that asset to buy another one, so on and so forth until you’re leveraged 10-1 but fuck it if you die it’s someone else’s problem, if you declare bankruptcy it’s the banks problem, and you don’t pay tax on borrowed money (but you’ll sure as hell pay interest)

[@Alex-cw3rz]

0:30 As someone from the UK we genuinely have non of these extra fees. Obviously a Surveyor and Lawyer but that's not even a thousand for each for a first time house buyer. The other bank fees are normally waved and even then they are not high. Even if you didn't try to save the fees in total would be about 5 times lower than quoted in that first video. That's including lawyers and a Surveyor. It shows how unfortunately Americans pay for stuff nobody else does and how they just take it at face value as the price for doing business, when it's not.

[@nw7587]

I’d rather pay those fees than not have the option to have a fixed rate mortgage.

[@sylsuthss]

Really? They are paying tens of thousands each year on top of whatever rate they have. I prefer the UK system thanks

[@kingsgold]

capitalistic nature of america. wall street gold mine has taken over businesses these days. it has done significantly more harm than good in the last 15 years. every company is inventing new ways to get money from people.

[@Moonastronaut]

Uk has stamp duty that first time buyers would need to pay next year.

[@rebeltheharem7028]

Better than a variable rate mortgage. Because of that, people in all the other former british colonies are suffering like hell and going bankrupt. A fixed rate mortgage with consistent payments until the end of the term is more than enough to deal with the other hassles. Seeing your mortgage payment go from what you expect as 2K, and having it jump to 4K the next year because interest rates raised 3% is a bitch.

[@mercheg.8397]

Omg my two gurus on the thumbnail picture attracted me to the video like a fly to a muffin 😂❤

[@litapd311]

it always feels validating when they agree with the other

[@Kornheiser10]

Grant Cardone? Really? You probably, like many, want to parallel his money, not his life...but the two are very inexorably intertwined.

[@mercheg.8397]

@ They have changed the thumbnail. When I clicked earlier it was Ramit and Nischa, I’d swear

[@mhodge0890]

Thanks for the video Ramit

[@FangerZero]

for my vehicle, I buy a new car and hold it for 10+ years. I'm 35 and I'm on my second car and 5 years in. My vehicle just needs to get me from point A to Point B safely and reliably.

[@donaldlyons17]

Yeah but to get a car with low or no maintenace that would more the likely not be 10 years old too right?

[@litapd311]

​@@donaldlyons17sure, but a 3-5 year old car isn't really "new" but most can last 10 years from that point. my Camry is 17 years old and runs great. most cars made in the past few years will easily last over a decade with basic maintenance (unless you have a BMW or something).

[@WealthyChronicle]

I totally relate to the phantom costs part! Just like RIT Sati mentioned, my wedding had so many unexpected expenses.

[@christianvega3850]

I learned about the house down payment + closing cost issues while I was looking for a house to buy. Be ready for an extra down payment (just in case) if the loan doesn't cover the full appraiser purchase value of the house you want. Always have a buffer of cash. Buy only what you can afford.

[@josephj6521]

Bought our house in Australia. The costs associated to buy our home? $90,000. Taxes, legal fees, other fees. That's with a 60% deposit on the mortgage. Insane! I laughed at the $12,000 fees here.

[@stevenmccrate258]

Let’s Correct Grants comment. All Roth accounts ARE tax free

[@litapd311]

true but theres a difference. some people can get roth 401ks and don't get taxed later, the default is traditional which isn't taxed now but is later. i'm sure you know but just spreading the info

[@KnineFeline]

@@litapd311 Traditional IRA is what I think you're referring to. Roth IRAs and Roth 401k receive post tax contributions and pay no taxes at distribution/withdrawal. Traditional IRAs receive pre-tax contributions and then pay tax at withdrawal.

[@themusic6808]

Regarding the first video, I’ve worked in banking and mortgage lending and the “phantom costs” as you may put it are what people don’t factor in with the whole own vs rent debate. If you’re going to own a home the ever persistent and rising costs of insurance, property taxes, legal fees, financing fees and sheer upkeep and maintenance are ASTRONOMICAL when totalled up over decades and decades. I have seen way too many people consistently refinance, go into more debt, and eat away at the equity that they have in their real estate due to the fact they cannot afford to keep up with the cost of owning the home itself or they’re going into high interest consumer debt to keep it afloat…..which they eventually roll into their mortgage and re-amortize. Sad, but true.

[@nkem6750]

i have no desire whatsoever to own property. idk why everyone is obsessed with buying a house.

[@ramitsethi]

What a great question. If you ask people this, they'll give you a bunch of logical-sounding reasons ("they're not building land any more") but if you keep digging, the answer is almost always: "Because that's what successful people do"

[@Ocq4395]

Depends on your goals and dreams. For some a house represents stability for them & their family. It also represents a vehicle to pass on some wealth when they pass away (assuming its sold and shared among trustees).

[@darkminatozaki]

I would rent my way out of this sh** hole

[@lowlowseesee]

@@Ocq4395 most people dont run the actual numbers and thats why most folks are house poor. so they look stable but they are not. having a house with no savings and no investments is nuts. the house is essentially a big purchase masquerading as an investment. i have a friend now who has a house valued 160 thous more than they paid. but she doesnt want to sell it anyway and she is in debt and going through a divorce. also when i brought up maintenance she just shrugged and took off a ton of money from what she perceived as profit lol

[@Bynming]

​​@@ramitsethimy reason is because I like to own things that I can do whatever I want with. I can paint my walls the color I want and mount things on them, do renos on my house, and know I won't get evicted so the landlord can move his kids in or whatever. This house had a rental water heater and furnace when I moved in and the first thing I did was to buy them out to be out of any stupid contracts. Renting is perfectly fine and better in a lot of circumstances, it's just not for us.

[@longview3k69]

On the Grant Cardone thing, I have my 401k set up as a Roth 401k, do I still need to pay taxes on that? That's something that wasn't mentioned.

[@aas55]

Nope if you’re set up as a Roth, no taxes. Your contribution was already post-tax, same benefit as a Roth IRA.

[@longview3k69]

@@aas55 Awesome, I'm glad I opted for that option. Thank you!

[@josefj1776]

Grant has no clue about 401k and just uses myths and exaggerated myths of 401k’s

[@antillie7]

He always conveniently fails to mention Roth 401k's and depreciation recapture. Probably because they totally destroy is narrative.

[@maryakpadock34]

You'll just pay taxes on the employer match

[@sherrieludwig508]

The other thing about retirement funds is that you don't HAVE to withdraw, until you are over 70 years old, then it's a small RMD (required minimum distribution). You are probably not working as much, your income is lower, so you will be in a lower tax bracket than when you were pulling in the wage$$.

[@brianaspinall1831]

I have my townhouse paid off and its a good breathing room. I have 2 kids, and a good stable home base. I don't plan on buying my next one for 5 years. If i do, my first property will pay for my next one.

[@kahrhoshe]

We got nailed with a 6k TAX STAMP nobody told us about when we bought our first home. My wife was so upset becasue she couldntd get hold of me because i was at a concert and coudlnt get a hold of me to tell me. thankfully at the time my parents were able to loan us that so we closed on the house and paid them back over the years.

[@hrhsophiathefirst4060]

One of my neighbors and I were chatting and he said to me he is retiring in 2025 and he will be pulling his tax-free money from his 401k and also claiming his Social Security at 62. He was adamant that I was wrong when I told him that the 401k was penalty free but not tax free at any age. I told him have a chat with his HR person because he was wrong.

[@firefalcoln]

I think Ramit’s car buying advice makes more sense 15-20 years ago prior to so many vehicles being incentives to have cutting edge technology that tends to break or malfunction early-on. Nowadays it’s a great idea if you’re buying a car to buy a used with a decent track record, because you can check that track record of that make, model and year if it’s 3 or more years old. I personally like a car that’s more like 5-8 years old because there is even more data, depreciation and time for the vehicles with warts to present themselves. Warts are superficial issues like minor fender bender visuals or fades to the paint that don’t really matter towards the longevity of the vehicle running, but allow the vehicle to be sold for a bargain because a lot of people mistakenly judge a car by its exterior rather than the condition of the interior which matters. Always have a proper inspection for a used car mechanically obviously. Sometimes an ugly car outside is bad inside too. But plenty of times it’s just the outside with a problem. Similarly sometimes a car looks fine, but is awful under the hood. Also there is a big supply and lower demand for vehicles right after they exceed their warranty, which is usually around 5 years or 50-100k miles. Personally, I’d rather not have to deal with a dealership at all. And having 6 or more years of information on a vehicle is probably more useful than having a 3 year old vehicle with less information, but a year or two still under warranty. A lot of people just want to know what brand they can or cannot trust. But every brand makes bad cars. Some brands are more consistently problematic. But no brand is guaranteed to make a good car when the car is new. Even if it’s the last year of a generation of a vehicle that was good in year one and two which have a 3 plus year track record at the time of looking to buy the last year of that generation new. Manufacturers usually make a lot of changes between the first and last year of a car’s generation. Mid-generation refreshes are the norm now. Changes to the manufacturing location or procedure of a car mid generation is also normal. Another thing to consider is: are you the type of person who wants to drive the same car for 7 years? For me the answer is no. I couldn’t afford a new car every 7 years. So I buy older fun used vehicles that I expect to have to replace every 7 or so years anyway. Also, do you want more proven older technology which will cost you more at the gas pump? Or do you want to have a hybrid or PHEV or EV which can save you money every year of ownership on fuel costs if it doesn’t break down. Personally I think full EVs are for the future for most people (especially if you can’t charge at home). Full EVs make more sense as one of 2 or 3 vehicles for a couple rather than the one vehicle for a couple or individual. Hybrids and PHEVs IMO are great options for right now for anyone who has an emergency fund and drives. And grouping hybrids as ICE by the ultra progressives or hybrids as EVs by ultra conservatives is a mistake. EVs, PHEVs, hybrids and ICE vehicles are all different and have their own merits and risks.

[@beetsbeetsbeets]

Calling people out for "needing their money trapped" is literally so accurate. This is why CPP and Social Security are so important. People criticize these programs, but trust me we'd have seniors in abject poverty without them. In a few decades these kids watching TikTok finance gurus will put everything on "red" at age 50 and end up with zero savings and ZERO income. On their face because they didn't prepare and want to get rich quick.

[@amethystscorner]

These are my favorite videos

[@bookkeepingtipswithty]

As a tax preparer I do not put any money in retirement funds. Seen way too many people get penalized for withdrawing their own money plus taxed. It's insane. Also, tax rates are generally trending up, which means there is a good chance you'll pay more taxes if you defer them to a future year. Trust me, the government did their homework before they rolled those retirement programs out. They wouldn't do them if it wasn't stacked in their favor.

[@nickgoodwin4271]

First, people can withdraw money from the 401k penalty free at 59.5 yo not 63. Also, if a person is no longer employed, he can withdraw penalty free at 55. He can also withdraw a set amount via a 72t before 55 penalty free. Do your research.

[@Zhcwu]

What phantom costs? I've bought two properties and both of the loan you sign lists an itemizes the costs. Read the contracts.

[@trippingwithjesse9837]

He’s saying people don’t get that, people also forget about house insurance, maintenance costs, property tax, etc. . .

[@PaulB-q3d]

My costs were like £2500 on top of the house price and as for the mortgage, the rate is lower than my cash ISA returns.

[@antillie7]

You can't really compare UK and US housing markets. For example in the US the interest rate is fixed for the entire 15 or 30 year duration of the loan. The principal and interest payment will literally never change. That is not the case in the UK.

[@Camie2023]

Phantom cost yes. But it saves the headache of keep finding new place when the rent increases. I have such a hard time listening whenever ramit brings up rent. I would not be able to be around both in laws and my own parents if i didnt purchase this home 12 years ago when i have yet been able to live in but had to rent it out. I never regret it. Now i can sell for 5 times the purchase price and “rent” if i want to. But stock investments do not help me much. Each to their own. But pls do understand not everyone can pick up and move to another state or are lucky with stocks etc.

[@bernaclischurchill4463]

The phantom costs apply to funerals as well, I know this is not a good topic, but this happened yrs ago, when my brother passed away. The Funeral Director quoted us one price, and when we got to the funeral home to sign the papers it was additional costs added on. They know you are grieving, and they take advantage. I was not surprised because I looked it up on the net before I went, so I was prepared for the 'phantom' costs, which for a funeral is a pretty low life thing to do, but every body is a A-hole trying to get you no matter what the situation is. Bottom line, business people are the scum of the earth in more ways than one, regardless of what business they are in-you are just the VICTIM, period end of sentences.

[@charmin78]

TIPS: 1. Always plan for a buffer.

[@MiraMira0ntheWall]

I bought a new and plan to keep it for at least 8/10 years.

[@FeintBoxing]

Great video. Just dust off the mic 🎤 LOL!!!

[@BottomLineBassin2]

If you get your financial advice from TikTok then you deserve everything that’s coming your way.

[@trackee2024]

You don’t pay taxes on a Roth 401k though!

[@danwilliams6206]

Well, you pay income tax upfront...

[@cms1368]

If you do not have kids then it probably make sense to rent as you do not have to worry about schools.

[@sasukesuite1]

I'm saving up $200k in cash before I buy my first condo. That'll cover my down payment, closing costs, earnest money, and 12 month emergency fund. Currently at $160k, should be there by the end of 2025.

[@rowddyone3570]

Roth 401k is tax free

[@mw-ny7gq]

There's no Roth 401 K. It's Roth IRA that's tax-free. 401K are pretax contributions .. therefore, you'll pay taxes on withdrawals.

[@rowddyone3570]

@ not sure but my husband’s 401k has pre, after, and Roth options, so we use Roth

[@tracyaf6084]

@@mw-ny7gq there are Roth 401ks. Not all employers offer them, but they exist. My employer offers it.

[@mhodge0890]

@rowwdy I have the same thing and it’s not the same as Roth IRA. What your husband had you still pay taxes after trust

[@tracyaf6084]

@@mhodge0890 you don’t pay taxes on Roth 401k distributions as long as you’re 59.5 and have been making contributions to the account for at least 5 years. You can google that information.

[@PradedaCech]

Hm, I bought my current car when it was 11 years old and am driving it since 5 years..sure, it cost more so far in repairs and maintenance than the purchase price, but it's still a very cheap option..

[@EmmanuelAbelCobbinah]

Grand cardone😂

[@0v8748]

That first clip is a headache

[@leomarreinoso280]

Ramit, I wonder if you would buy your home in cash one day??

[@ramitsethi]

Maybe. Likely not, depending on interest rates, especially because I can make more money in the market vs. locking it up in unproductive luxury real estate. But one of my Money Rules is to be *able* to pay for anything I purchase in cash -- not necessarily TO, but to be able to

[@leomarreinoso280]

@@ramitsethi Thanks for answering

[@zaidahmed9527]

@@ramitsethi worth doing the math Ramit. Of course not sure how much you pay in rent but if you factor in the rental saving, and that it’s tax free, and that house prices appreciate …could be more beneficial… lots of reason to buy but all depends on circumstances and personal situation 👍. Example maths is saving $2000 rent a month paying $500,000 for a property. That’s around a 5% return a year tax free, and risk free. For many that’s a very solid return

[@TwiggyAlienorCameron]

​@zaidahmed9527 I don't know about you, but where I live, we have property tax. Not to mention home maintenance, interest rates on mortgages, and other costs associated with ownership that you dont have to cover when renting. The cost insure a home can be higher renters insurance too. In most places the cost to own is going to be significantly higher than to rent an equivalent home, and the difference in cost can be invested into low management fee index funds through tax advantaged or even tax free accounts. You won't own a home outright after 30 years by renting, but you will likely come out ahead financially speaking due to the 30 years of compounding tax free returns on investments. There are reasons to own a home but, if you're living in it, it being an investment generally isnt one of them.

[@benzboy2340]

The Money cost more then the property

[@obrienortega6942]

A lot of fake financial gurus giving financial advice.

[@davidbrooks8809]

I track my own money I don't need rocket mortgage to me that's stupid😮😅

[@nickgoodwin4271]

Vlad needs to educate himself on 401ks. Grant needs to shut up about 401ks.

[@ftr911drvr]

You make great points thats why I watch your videos they've helped me for sure. I just don't get why the constant bashing of homeowners or buying a home. I would love a video where you dont just bash home buying its becoming redundant at this point. The motivation behind it is confusing, do you own a rental company or something? Like we get you have an irrational hatred of homes, we got it whats next....

[@ramitsethi]

I'm not against buying a house. I'm pro-running the numbers.

[@coreyburke3493]

I'll give you the answer I got using what Ramit says. So where I live I have a two bedroom one bathroom apartment I pay $2k a month. It's also rent controlled so will only go up max 5% each year. A condo with the exact same room count and very similar set up would cost me $3500 a month AFTER $100k down. That's without additional repairs accounted for. There's rent vs by calculators that allow for the rent increase and all that to be included. There's no math that makes buying that condo a better choice than putting the $100k plus $1500 a month into an investment account. The return is always shown as better by renting. And if we do the same with a house it just gets ridiculous because the area I'm in a "starter" home is over a million dollars. Then at the end when you retire both options give you different outcomes as well. A paid off house is great but if I don't want to move I can't access the equity I've built without going into debt or selling. If I sell I have to move because everything around me will have gotten more expensive. Or I can take out a loan. With a massive investment account I can use as little or as much as I want without moving or going into debt. As soon as it's cheaper to buy OR I have enough money that buying isn't a big financial hit I'll probably consider it. But his point is not to never buy it's to do the real math including opportunity costs, maintenance costs and all that. So many people go house poor because they think it's the only way or they move so far away from work. I'd rather rent and invest than own and have a two hour commute each way for the next 20-30 years.

[@buyerclub2]

Taking the time to write this comment, as you in the past have replied before. If you take your comments on the first two videos you will see why you and I have some disagreements. In the first video you make the comment, that if instead of purchasing a home the person had invested the money instead of purchasing the home they would have been able to save a large amount. In your second video you correctly point out that Americans have an abysmal savings rate. So while I do somewhat agree with your major theme of “running numbers” I cana not agree that in most cases renting might be preferable than home purchase. I covered many of my points in prior replies. Including the tax benefits of home ownership, and the ability to use leverage without people thinking that is a major mistake. (compared to stock investing). But dont you agree if in either situation, people are just spending their money, instead of investing, they are worse off? The first video DOES make a valid point. Home purchases DO have many extra costs. Many that I feel are crazy and unnecessary. (Just sold a property last week, and I could point out some.) And that is why I would strongly suggest if you cant stay in the home for at leat 3-5 years home purchasing rarely can make sense. BUT,if you do own a home, and it appreciates it can be a major benefit to your networt. Care to comment?

[@denisewade2638]

Thanks for sharing this video. I was wondering what you thought of financial advice coming from Porter Stanberry. Is he legit or a fear warrior?

[@mingletopper]

As a financial consultant, I have given a lot of thought towards your recommendation to not work with AUM based advisors, and your logic just doesn’t make sense to me. I am hoping that I can help understand the context in which an hourly or flat rate advisor would be better as a fiduciary. Likewise, I can explain why for most people who actually NEED management (retirement age, large net worth individuals) percentage based advisors are much better. I just don’t understand your blanket statement to avoid one and go towards the other. It also seems like you have a conflict of interest when you state that given the sponsor of one of your videos and your book. Could you help me understand?

[@ramitsethi]

AUM makes no sense because (1) it's far more expensive than most realize -- A LOT more expensive, not a little, (2) there's no evidence showing you get better results vs. paying an advisor an hourly or project-based fee, (3) almost no other industry charges this way. Would you pay your gardener or personal trainer a % of your investments? Of course not, and (4) the industry has fought at every turn to profit more and weaken regulation and the fiduciary standard Manage your money yourself or, if you want help, get an advisor that charges an hourly or project fee. I'm a big fan of paying premium prices! But never an AUM fee

[@mingletopper]

@@ramitsethi I’m sorry, that just doesn’t make sense. Many times, AUM management is holistic, and creates value not just through gains (anyone can make money when the market goes up) but in risk management AND tax efficiency (active tax lost harvesting for example). Hourly or flat rate advisors cannot provide that same type of active management as often they are giving spot advice within a window of time rather than via long term relationship. Your issue of cost is a bit of a red herring as those who need AUM style management may pay 1% so that they save 5% when the market is down while gaining as much upside percentage as possible. That’s basic modern portfolio theory. Young people or those building wealth do not need that type of management, I agree. However, your blanket statement seems a bit ignorant of the differences of management types and the value provided.

[@ramitsethi]

There's no evidence that paying an AUM fee produces better outcomes than paying an advisor a flat fee or hourly fee. If you have evidence showing that, please let me know.

[@mingletopper]

@ what type of evidence would you prefer?

[@ramitsethi]

A study with data

[@TrendStormX]

[@alex182618]

So you pay taxes, so what? These taxes go on you Medicare, defence, highways.

[@laundrygoddess4]

Where I'm from, $400,000 isn't a first time buyers home. I get it is more expensive in some places but wages are also higher as well

[@donaldlyons17]

Dude the median home in my area is close to that... Even if we want cheaper homes they do super quick and are not typically in the best neighborhood either~~

[@ltao0802]

I know Ramit cares about the economic cost of buying a house. But the reality is that there are emotional decisions involved in owning a house. Once Ramit has a child, he might understand how important stability is for children and families.

[@ramitsethi]

First, we run the numbers. THEN we consider the non-financial factors, which are also very important. Making the biggest purchase of your life without running the numbers is risky and extremely poor decision making.

[@themusic6808]

Order of operations my guy. If you’re starting a family and having children before being able to afford a house you’re doing it ass backwards lol No one becomes wealthy acting impulsively on emotions whilst forgoing math and pragmatism. In fact more families are in time hurt and broken apart from foolish financial decisions related to emotions.

[@tradeforcharity]

VladTV is terrible made Grant Cardone look like a Genius LOL

[@TransformwithTayani]

I have a 7.5% match at my job. The goal is to increase my match by 1%-3% each year.

[@birdpaladin9332]

You can't increase your employer match amount. You can't even negotiate it. You can only increase what you contribute to your 401k. Edit: the match has to be consistent for all employees, and unless you own your own business and can make that decision, you can't increase or negotiate it for a single individual in the company without increasing it for the collective.

[@ashall5673]

@@birdpaladin9332she said increase her match, not her employers…

[@Fred2-123]

Why do they think hog nose rings are attractive?

[@ramitsethi]

Can you show me a full-body pic and video of yourself so I can critique you? Thanks. Looking forward to it.

[@Noellep]

​@@ramitsethi👏👏👏👏

[@josefj1776]

I don't know what you are talking about weddings being expensive ours cost $4,000 had 120 guests and fed them all. But I love your content you have a lot of great information. And it is overall good universal advice.

[@kemi1486]

I think Indian weddings stretch over a few days though. Unlike US, where it’s all done in a single.

[@litapd311]

indian weddings often have a lot more guests and might also take place over 2 days so they can be more expensive.

[@dominiquechenard2220]

$33/person? Including not only the food but everything else? (Equipment rentals, photography, decorations). I suppose if you just whipped up egg sandwiches and chopped up some carrots and ranch for 120 people, it's doable.

[@MGonzo1968]

😎

[@paulythewallabee]

You didn’t stretch your wedding so big that you couldn’t afford extra phantom costs. But you saved for it over a decade????

[@UltrAMArIn3prOph3cY]

If you know you want to have a wedding that has lots of guests and is big you start saving for it long before you even find your future partner. Some parents save for a wedding starting when their child is born. Especially if you like saving with goals in mind you can create lots of savings accounts for different things future home, future gaming computer,vacations, dream car...ect Whatever amount you have in your spending after you main fixed costs and your investments and emergency fund will go to your savings goals. It limits your guilt Free spending but that's the point you have to decide what is important to you.

[@DavidValles]

What is wrong with what he said lmao

[@litapd311]

you can save for small amounts over a long time??? also it's not that weird to think maybe he saved $1,000 a year for over a decade. that is a good wedding budget but it's not enough that he can "overspend"

[@2BXD]

Lets goo

[@BrianGomez-e8t]

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[@BrianGomez-e8t]

He's mostly on Telegrams, using the user name.

[@BrianGomez-e8t]

@MiltonHarper

[@thenamenecklace]

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[@andreasgappmaier5]

Best signal provider in the market. Knowledgeable, level headed no loss like some other traders who recently jumped on the bandwagon.

[@WayneReyes881]

I appreciate the professionalism and dedication of the team behind Milton’s trade signal service.

[@josefj1776]

No fantom costs in owning a home. Everyone knows closing is not included in the down payment. That is why we did a 0% down payment and that 50% over your mortgage payment and escrow is BS repairs don't even come close to that amount. Also, this is what EM funds are for. Owning is far cheaper than renting. If you rent you still pay the HOA fee you still pay to maintain the lawn renting you still pay for power, water, and trash and then you pay far more in rent 10 years later. And pay the same in rent when you buy. When something breaks I fix it when I want to a landlord repairs it when they want to. Have fun going weeks with a water leak, no hot water, or no AC. But please tell us at what point would home repairs be the same as $150,000 every 10 years. I also see you don't give the same recommend for adding 50% to your car payment for repairs. After all that has far more frequent repairs than a house. And they are often multiple thousands for each repair. (new tires $1500 new brakes 1200 new soarkpugs $1000-3,000)

[@enjen5468]

Have you watched any of his other videos? He definitely does go into detail about the phantom costs of owning a car and recommends increasing your base car payment in your budget to account for not only maintenance but also parking, tickets, etc. I'd recommend setting your bias aside and listening. It's okay if you believe owning a house is more advantageous than renting. He's not attacking you. Happy budgeting, friend

[@josefj1776]

@ That’s one thing I didn’t understand. Why does he keep mentioning parking tickets? I’ve never received one and I don’t know anyone who has received a parking ticket. If he feels that I am attacking him I am not. I disagree with some of his advie. I do enjoy much of his content and over all he has good stuff that applys to many people as general advice. I will have to watch his show one of these days.

[@donaldlyons17]

@@josefj1776 Tickets should be apart of driving at some point IMO so yeah parking and tickets as part of the budget don't seem like bad suggestions....

[@tracyaf6084]

I think he overestimates the phantom costs a bit, but they’re still important to consider. We’ve spent very little on repairs and our mortgage is far less than rent would be for a similar home so I think it’s been a good thing for us. Honestly, even if it was more expensive it would still be worth it to me to not be at the mercy of a landlord.

[@enjen5468]

@@josefj1776 it's an example of something you don't anticipate. For example, my wife accidentally partially blocked a driveway in downtown. The ticket was $150+. We certainly didn't plan on getting a ticket, but it happened, and we had sufficient wiggle room in the budget to make it work. Think of people who literally live paycheck to paycheck. If they don't somehow account for a few unknowns then something as innocuous as a parking ticket can put them in the red.