The Death of Millionaire Status: How Much You Really Need to be Rich

[@aerojoea]

I once heard that the difference between being rich and being wealthy is that you can easily spot a rich person, but it's tough to spot a wealthy person.

[@philmarsh7723]

Look for the ragged clothes and age>50 at the Linux users' computer meetup or any other meetup in science/technology.

[@MB-uy5kh]

Retired anesthesiologist here who worked most of the time and never felt the need to shop or buy the Mercedes/ BMW. I wore hospital provided scrubs for 35 years of practice. I can’t even remember the last time I bought new clothes. I drive my 15 year old Civic which has 45K miles (hospital was 3 miles from my home). I am wearing my sweats and a t-shirt I have had for at least 20 years, not kidding. My passion is travel to the “off the beaten path”. I took six weeks off every year for the last 30 years and have now traveled to 78 countries. I shop at Adli’s and Trader Joe’s in my old clothes and old car and I very rarely get approached by the beggars as some are dressed better than I am 😅

[@FIREownyourtime]

Rich is what you see...aka money spent.. wealth is money not spend..

[@johng4093]

​@@eplugplay8409There's something satisfying about getting decades of use out of a product. Simple pleasures of life.

[@jacksonbilly9979]

I have been watching the money guy show for about 4 months now. Changed my life completely. And jts been nice seeing my bank account grow. Very addicting. I am the youngest of 5 kids. And I have been telling all of my brothers to invest and save and they keep saying they need the money now. All of them had pennies to their name. And last night I FINALLY convinced one of my brothers to check you out and buy their retirement now.

[@famicomnintendo3212]

You're a good brother 👌

[@shotskieskie]

This is awesome, way to go!!! Great to see these videos, this sage advice, reaching new savers

[@fstap]

My retirement goal is $2.5 million by 60. I'm 28 now and have been investing almost 30% of my income since 25. As long as I keep doing what I'm doing, I should be on target no sweat

[@rgarri6396]

You will make it I’m sure! Congratulation

[@jdrancho1864]

Wish I had been this focused when I was 28. Stay on track 🥂

[@reginaldsafety6090]

Well the thing they pointed out in this video is that by the time you are 60 $2.5 million isn't really going to be that much money, because of inflation. If you want the purchase power to be around $2.5 million you actually need to save a bit over $7 million by age 60.

[@jdrancho1864]

@@reginaldsafety6090 2.5 or 7, he'll have money in his retirement. Better than most people who don['t save at all, and retire without a pot to piss in. That's how I explained the benefit of a 401k to a workmate.

[@happyzahn8031]

@@reginaldsafety6090 I agree. 1 million just doesn't go that far these days. In 30 years, 2 million will probably not go that far. So sad.

[@RobWilliams007]

The divorce statistic is for real. Lost most everything at 49. I am 60 and have regained most but am now way behind - I could have retired a few years ago. My advice to anyone getting a divorce is to go to mediation, avoid the courts and be reasonable - nobody wins but it doesn’t need to be a complete loss either.

[@rosebush7000]

Don’t stay in a bad marriage because of MONEY and retirement plans. Peace, mental health and joy are all unquantifiable…you will be all right - no rush to the finish line.

[@marktapley7571]

wrong, the woman almost always wins in the “family” court. Thats why in the U.S. they file for divorce (not the man) ap. 80% of the time. Unless college educated, then its 90%.

[@rosebush7000]

@@nomadmgtow well golly! 🤣That’s a heck of a jaded perspective if marriage is just for kids. For some, marriage is a covenant deeper than these all benefits, financial included but finance is not a good reason to get or stay married. Life is risk - pick your poison.

[@syedaftab4222]

Don’t get married. It’s completely pointless. Only the divorce attorneys win.

[@Masate529]

I have only began to have some money after I am divorced. My ex-husband was a complete luxury addict. We had no good debt. Only last 5 years, I am able to save anything. I feel like I am starting like a 20 year old when I am 40.

[@Steve_Edberg]

Just last week I calculated my net worth and for the first time I hit it. $1,002,615. I feel like the last kid on the block to get to that milestone and I was so proud for a moment only to be told "Ah, it's no big deal." 😂😂😂

[@fishlover]

Just curious when did you start?

[@marknease1631]

it sucks, doesn’t it? not that I’m there yet, but just hearing this info is like getting hit with a brick.

[@vulpixelful]

No need to feel like that's not a big deal. That's more financial security than many Americans will ever experience.

[@spdog3344]

Depends your age and also they said what is considered rich, not what would provide a comfortable life

[@Steve_Edberg]

@@fishlover I'll be 51 in October and have been contributing to my 401k since about age 25. I've had ups and downs, same as everyone else. I started at 5% and have slowly increased it to where I now put in 20%. I now make about $130,000 per year and at times in my life I've struggled with the occasional bad financial decision. (i.e. credit cards, dumb auto loans, a mortgage that's been almost a little too much to afford, etc.) It's been a long road for sure but I got there. It's fleeting though and it's just a number. I know a bad quarter or two could knock it right back into 6 figure territory again. I hope not but that's how life goes sometimes. 😂😂😂

[@cuz129]

I'm 67, today's dollar is worth less than 25 cents of my first after college paycheck! You two are fun to watch. High energy, accurate and interesting content.

[@signalboy500]

I have been investing aggressively since I was 22. I am now 29 and proud to say that my net worth is just above $2mil. Keep working people! Just stay focused and you will get there! It was a long and tough journey for me but I am wiser and happy I did it!

[@circrna]

I do not consider myself rich as long as I work for money. One day if money starts working for me then I will feel rich.

[@dforrest4503]

If you’re smart, it’s already working for you, but you’re plowing it back in to reap the growth of that reinvestment.

[@shortstraw4]

By the time I retire in 30 years I'll need 4 million to match that million in 1996 😂

[@tybrent2841]

Yup I put it at 3.8

[@famicomnintendo3212]

Civilisation will collapse before that

[@johnjones8330]

Maybe, but if 1996 to 2053 looks more like 1966 to 2023 then it would be more like $9.4 million. Also if 2023 to 2053 looks like 1993 to 2023 it will actually be about $4.6 million. Impossible to see the future is.

[@elmundo1871]

Just so you know, that's roughly 2k per month to save and do that every month with an annual 10% return.

[@jdrancho1864]

@@elmundo1871 2k is going to be a lot easier ten years from now. Pay levels are going to be alot higher. I'm fully funding my 401k + catch-up + HSA.

[@frankt1720]

$1,000,000 is more net worth than most Americans will ever see.

[@peternguyen1911]

But that $100,000 pick up truck is a good consolation prize

[@marknease1631]

@@peternguyen1911 i recently noticed that - some pickup trucks are currently in the 6-figure range - Ram TRX special edition.

[@kyleolson9636]

Based on recent inflation and current American savings rates, it will take about 60 years until the median retiree has a million in retirement savings. Counting all net worth, the average 20 year old today will have over a million in net worth by retirement.

[@brianmcg321]

@@kyleolson9636 that’s a load of bs.

[@kevmur2014]

Let’s be real, most Americans won’t see 100K net worth. The median bank account balance is around $5000

[@meddings222]

Ive said it once, ill say it again, one million dollars is better than not a million dollars

[@gibblespascack1418]

At 25, I calculated that if I put $500/mo into a mutual fund, I would end up with $2.65 million by the time I retire. That was the plan 35 years ago. That should get me to a place and if SS was not there, I should be fine. Well, it has worked out because I started early. As for the percentage put into 401K, I put in the max my co allowed which was 16% and my company added 3% so for the better part of 20 years, I was adding 19% per year and by the time I hit 46, i calculated that I willnot need to add any more to hit my goal. So far that is doing ok.

[@pentoo988]

Great job, great discipline and foresight. Don’t get cocky :)

[@gibblespascack1418]

Too Late. But to quote the ATeam: "I love it when a plan comes together." @@pentoo988

[@5daysofcoffee]

I mean social security running out and social security not existing are two different things. One means maybe you collect $3,000 a month while the other means maybe you collect $2,000. It will be there in some form as a nice addition to someone who has a well funded retirement. Now entirely relying on it would be rough.

[@burkles4456]

I think this needs to be yelled from the rooftops, people are being mislead by the news on SS ‘running out’.

[@5daysofcoffee]

@@burkles4456I personally think there’s an agenda behind the misinformation. It means people will invest in the market more propping up the market. It creates uncertainty so people may delay retirement. Some politicians don’t like social security because it allows most people to retire when they could be working. There’s definitely a fringe political wing that would love to undermine people’s faith in social security so we get doped into going along with it’s demise which would prevent a large potion of Americans from retiring.

[@imitationpitaya]

@@burkles4456it’s intentional for some. Because they don’t want the program to exist any longer so they’re trying to normalize the idea that you won’t get anything from it. When there are potential fixes that need to be implemented. That said, that doesn’t change the issue of how little retirement savings a lot of people end up having

[@July.4.1776]

@@burkles4456…. Correct social security was never intended to replace your income! At best it will replace 40% of your income. You have four decades to save and invest prior to retirement. Absolutely no reason to not be prepared.

[@matthewgeissinger2856]

Since it is a pay as you go system it has a glaring weakness. We have less workers paying for the people that are drawing on it. Aging population and declining birth rates means we will continue to have more people drawing on it. I am 43, and I don’t even count it in any of my retirement scenarios. Investing and saving as much as I can for 20 years and I am in good shape financially because of it but I fear many millennials are not. The really scary 😱 thing is I manage 20 something’s at work and most of them don’t even know what a Roth IRA is or what our company 401k match is.

[@LuxeMedia2]

Hey guys…ok so the average SSA payment is $1700/month so I cannot understand where are you getting $40k a year in social security income? For a 2 person household maybe, but certainly not individual income on SSA! that’s not accurate at all unless the individual is a very high earner who has worked 35 years. Also note most retirees take it early at 62 so their amount is 30% less than full retirement age. Most people at FRA will not even come close to 40K in SSA income, c’mon. Good advice but not totally accurate

[@vulpixelful]

Some goods get more expensive, some goods get cheaper, like decent tech. Plus, mortgage debt gets cheaper over time and you eventually pay it off. Your "personal" inflation rate fluctuates over time.

[@axelhoogland9442]

I like the show but man $800/ month at 20 is probably disheartening! In agree with the comment "just save anything in your 20s"

[@marknease1631]

yes - and the amount specified for early 50-year olds got me thinking that song “ordinary average guy” by Joe Walsh - for when we get to 65.

[@og7952]

Honestly... with a million, I would consider myself rich. Hell, with a house paid off and a car paid off I would consider myself rich

[@E.E.F.]

I am at this point and do not feel rich. 🙂

[@andrewlick1593]

The definition of rich changes as you move up the ladder. A million dollars seems like a big deal to most people, but it won't be once you get there. Then you need two million, then you need four million, then you ten. This is because your lifestyle, outlook and expectations will change. Our human nature dictates that it is never enough.

[@buildingbuildercip8292]

I’ve hit the $3.2m mark. Retired early and have no big ambition to get to $10m. I know i will though. I can now finally, enjoy the fruits of my labor. I know that there’s definitely a lot of people that just keep chasing that rabbit down the hole.

[@arisgod2749]

Agreed. Rich for me is my family, health, and enjoying life together. I don’t feel rich money wise even though I have more than 2.2 million in investable assets. I think this is because I don’t get my “happiness” from stuff I can buy

[@johng4093]

For me having reached retirement financially secure with no money worries is enough. Life is short and you can't buy more time, I'd rather enjoy it than chase more money. To each his own.

[@rowddyone3570]

128k is double what my husband and I would need in retirement in the mid west.

[@CharlesAPetitjean]

Good to see you guys address the elephant in the room, inflation over time. Feel like this channel does a really good job of preaching the basics but often overlooks inflation when projecting asset accumulation over time. It likely has given some folks a false sense of security who don’t have a high level of financial acumen.

[@KliFinancial]

exactly my thoughts. I feel like in other videos, they show calculations that make it seem like anyone at 20-25 if they start now can make it to the end of their journey easily, but the numbers in this video seem to be a bit more realistic

[@yhckelly]

70-75k household income is very tight in mid life, but will provide a pretty great retirement income. 1 mil, combined with SS benefits for a married couple, will provide about $80000 annually. Yes, 1 mil is still a lot of money- and its surprising how little inflation matters to old people who already have the basics covered and paid for. Thanks for the show!

[@andrewdiamond2697]

That's my take. If I can take 4% of 1 million, plus Social Security, plus have AirBnB as a side hustle, I'm at about $100k, and with no house payments or car payments or saving for retirement or kid's college, I'm in great shape.

[@mizzmolly7649]

It's good If your house is paid off.

[@jessemeier3447]

Well, if it's in a Roth account, that huge! You get rid of federal taxes (~15% ), no state taxes (~5% estimate), you theoretically have your house paid off (20%), and you're no longer saving for the future (25%), you no longer pay social security taxes (6.5%). That's almost 70% income boost! Even in a taxable account, you would have a 45% income boost compared to if you are currently making $75k because you're no longer paying off a mortgage or saving for retirement.

[@mizzmolly7649]

@@andrewdiamond2697 Until you're hit with medical bills or dental bills not covered by insurance or gap coverage, OR you're forced to buy another car or make expensive home repairs. 80k annually, after taxes, would probably require putting about 20k a year in an emergency fund. DANG, CAN WE JUST GET OLD IN PEACE? 😆😆😆

[@dbendele]

If you retire today a million may be enough but in 30 years?

[@tankberserkererer]

Literally was thinking about how much I need for $80,000 equivalent buying power by retirement just a few days ago and then this gem comes out. Y’all are Amazing

[@cangnguyen3065]

Saving 20-25% is tough when it’s some of it is Roth Based. I do 403b 7% to get company’s match and 11% 403b Roth. It’s definitely “easier” to do it pre-tax then post tax. My pre-tax portion is well on its way and been shifting it more to post-tax as I’ve started closing in on 50 years old.

[@girldaddividendinvestor]

Great video guys. When I was working the bars in college, I was preaching Lifestyle creep. Now as a40 y/o parent who started my journey in 2008. $2.2M is WAAAAAAAY more than we need. Not a bad target though. 😂😂

[@jennifernwiley]

Thank you for always including calculations for those in their 40s!!! It’s the place where I fall and is invaluable to us 40somes! Lack of financial education and life circumstances prevented me from beginning earlier, but I faithfully watch and thankfully have the means to change the trajectory and play catch up now.

[@ziggyess]

I hit the 7 Figure when i was 39. My midlife crisis started 2 years ago, i now buy myself luxury handbags that i love- Hermes, Chanel, Dior, Louis Vuitton. I waited until i am financially in the position to do this before rewarding myself with all the good things in life. I also bought myself a mercedes 😊. I have a small KZbin chanel talking about luxury handbags and finance. I hope one day i can come to see you both, collaborate and give an interview. I have been following you for sometime now and i love your content. Find balance in everything you do in life i think is also key. Now, that is the dream to be on your show!

[@ihaveadreamformykids4400]

Are those brands really good things in life? I’d rather spend it on seeing the world collecting memories with the people I love. To each their own

[@sterlinglock4708]

Hey Guys, could you explain how you calculated or found the average social security amount is $40,656 a year? From the SSA website which was last updated with February’s numbers that average monthly payment is $1,781 or $21,372 annually. Are you assuming that this is a couple that both are receiving SS?

[@wrongwayeric]

X 2, for both husband and wife.

[@flybyav8tor]

You are so right, it all starts with a plan. Then you realize your plan really isn’t going to do it, so you make more money to do more, then you realize having a million dollars is worthless, you’re broke. One law suit, one accident denied by insurance, lose your home to “an act of God” and you are toast. We jumped in on Wealthability this year, it was eye opening! We are 36 and spent the past 5 years becoming debt free, saving up, and opening a couple businesses. Before all this we made about $185k now after 3 years in business we are paying taxes on $518k for 2023. For reference we made $32k in 2020 our 1st year in business. This has made us realize that we aimed way too low the 1st 12 years of our working life. Now our goal is a net worth of $29M in the next 16 years and that is probably not enough. Think big and make the changes in yourself to accomplish more than what you think is possible. Along the way you will find out your old goals doable and you are capable of more. Go out there and make it so!

[@CalmerThanYouAre1]

Best part came at the end of the video. Work toward your own personal wealth number, not one based on a random investment bank poll that has nothing to do with your personal situation. I don’t think the calculations in this video accounted for the impact of taxes on median household income either. $130,000 of investment income from long-term capital gains would be equivalent to $162,000 of earned income from a job, roughly. Over 200% of the median household income.

[@RobWilliams007]

“Temporary problems becoming permanent consequences”. Good one Bo.

[@James-mw7zv]

You need 5 mil net worth to feel comfortable, meaning you need not worry about running out of money. But now you worry about your big asset being lost to scams, bad investments and bankruptcy.

[@Markrtsoon]

We have net worth of about $5 million. We are still worrying about running out of money.

[@johnristheanswer]

Of course it's enough. Most people will NEVER have $1m , but still manage to retire. Funny that , isn't it ?

[@billyoherron9437]

That’s because of social security though, there’s no guarantee that social security will be around in 35 years

[@maoisn]

What is enough will vary from person to person, where you live, health, family, ...etc. I could live on $1,000 a month but why? Enough for me is around $3 million

[@jacksonbilly9979]

Thats what i think is hilarious , the same people saying 1 million isn't enough to survive but yet refuse to save and wants to depend of 1000 amonth by the government. Blows my mind how little people think

[@Steve_Edberg]

In theory the older you are at retirement the less you should need. If you work until 70 you shouldn't need quite as much to live out your remaining years. If you retire at 50 you better have a pretty decent size nest egg to get through possibly the next 40 years until you die at 90. Also, older people retiring now get social security and a lot might possibly still collect a pension. Another thing to consider, if you have no debt and live a very simple, modest life, you really don't need much. And then there are some older people who jumped too early and are now finding themselves having to re-enter the workforce part time as a Walmart greeter, Uber driver or DoorDasher. There's a lot of good ways and bad ways that people can retire without being millionaires. The variables are infinite.

[@Steve_Edberg]

@@jacksonbilly9979 why shouldn't they expect social security?? They've paid into it their whole lives and at a pretty steep price!! Absolutely, 100% they should be fully entitled to it.

[@kylecouture1917]

Yes, 1 Million is enough. Dont be ridiculous. 300k house and 700k in investments is more than enough to live off of. Retirement is 50% nest egg and 50% lifestyle/sending.

[@zacharyfair6738]

If you are debt free/house paid off - living on 132k a year is crazy. You need to spend 11k a month on food, clothing and travel - maybe healthcare takes up 2-3K a month

[@zapperone7]

I have 4 healthy children, a loving wife, and I'm able to put food on the table and a roof over our heads. All those factors make me feel extremely rich. $2.2M in retirement would just be icing on the cake 😀

[@racerx6]

A house in Los Angeles cost $30k in 1968. The same house today goes for $1.3 million. And it is a fixer upper!! You could have bought about 33 of those houses for $1 million in 1968. A million isn't what it used to be. Yes, I grew up in that $30k house.

[@Bluponi]

Its really a shame how much inflation has eaten away at our money... In 1990, when I was 19 years old, I rented a 3 bedroom apartment with 2 room mates for $ 240 per month. I was making my rent payment with one day salary. Good news here is Geo Arbitrage ... One million is more than enough to retire in Costa Rica or the Philippines...

[@ConserveMore]

Are these the amounts needed based on household income? Or by each individual as part of a couple-based household?

[@GillerHeston]

Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.

[@rogerwheelers4322]

I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value.

[@joshbarney114]

This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant and everything changed. In the first quarter of this year i made $670k and counting.

[@FabioOdelega876]

Trustworthiness is the issue: Entrusting someone with your finances requires a high level of trust. It can be difficult to determine if a financial advisor is reliable and has your best interests at heart. It's essential to find an advisor who operates with integrity and adheres to ethical standards. But you seem to have it all worked out good for you, so I’m by my screen waiting for your recommendation.

[@joshbarney114]

"Colleen Janie Towe" is the coach that guides me. She’s a verified coach and she helped me see that returns can be made in both bull and bear markets. She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things like that.

[@FabioOdelega876]

Thank you for this tip , I must say Colleen, appears to be quite knowledgeable. After coming across her webpage, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.

[@newcreation19]

I’m in my late 20s, can we please start getting lump sum calculations for at least the 30s? I’ve been a diligent saver and investor for the past 10 years, so I’m not starting at $0, monthly numbers aren’t super helpful. I’d love a better metric to see where I am along the path!

[@eddiemalvin]

How long before Social Security eligibility rules are modified to exclude higher-net worth individuals, people with a healthy amount of retirement savings and/or folks with pensions?

[@IrisP989]

My husband and I passed $1M net worth a few months ago at the age of 37 and 38. We included everything in our calculation. That is not rich in California.

[@GoKU-xx2vg]

Yes what state you live in and cost of living is a big impact.

[@BossMan_Jerm]

Man… those numbers with inflation are brutal

[@thedeafguy]

In my 20 years of working, ice never recieved more tgan 3-4% of employer matchibg for my 401K. Does that even exist anymore?

[@davidsee3553]

People are too attached to the cities. Move to Possum Grape Arkansas and you can retire on $17.37.

[@RobWilliams007]

These numbers all assume that you don’t have any savings at 30,40,50, etc. what if I’m 50 and have $300,000, how much do I need to save, for example? Just curious how you figure that out. The inflation number and savings number would be different. Oh, I asked the question too early!

[@printedmarble6985]

Gotta be honest when I think of what inflation will do to my returns it's really demotivating, I obviously will keep doing it since it's better than a savings account but it hurts to know that most of the money I see in return calculators and estimates at my current savings are pretty much meaningless as the real number will be much lower when you account for inflation. Thinking that if I was able to get to $50m in investments in my life time it is really only worth $12m is really sad (48 years of compounding growth is the number I used (Im almost 22) and will probably retire at 70 (long story lol) its not a money thing)

[@burkles4456]

Imagine being born when food cost you Pennies. How do they feel? 😂

[@USAFraimius]

Wait, you are disappointed in $12,000,000 in today's purchasing power? That's enough to own multiple houses and a plane/boat... ...or buy another house every 14 months while living on a median income...

[@printedmarble6985]

@@USAFraimius that’s just an example that you’d lose more than half not that I’d actually be sad over 12 million 😭

[@printedmarble6985]

@@USAFraimius no I’m not disappointed at the 12 million itself just more so I’m disappointed at seeing how big the number is for it only to be worth 12 million. I’d still be happy with 12 million for sure!

[@BillyJeen]

@@burkles4456I imagine they feel pretty old. 😂

[@wendellhanes1]

Will this be based on net worth or liquid net worth? Sometimes it’s confusing when you guys talk about millionaire when it includes assets like home and car etc cause is that really a millionaire -having a bigger percentage of your net worth tied to your house and car?

[@BittermanAndy]

Yes. Obviously.

[@emoney1231]

Liquid net worth only matters if you will die with that home. If you sell it eventually, then it's an investment.

[@darex0827]

Net worth is net worth - the formula doesn't change, it's just that some people are more liquid than others.

[@nmccw3245]

Assets are a component of your net worth. Liquidity is a classification.

[@TheParkingLotGarage]

Your calculations are wrong (at 9:56 you say you assume a starting return at 10% that decrease by 0.1% per year, but the calculations shown are the required monthly savings if it stayed at 10% for the entire period).

[@FrankBatistaElJibaro]

Came for the karate chops, was not disappointed. Thank you for the abundance of information!

[@bullwingsc6216]

Currently 400k at mid 50s. Time to start looking for a camper to live during retirement lol

[@agriffin5308]

When a person has $100,000 or less, they are really bucking cost-of-living expenses out of that money. As their portfolio increases, the cost of living gets smaller and smaller in comparison. After a while, the cost of living is insignificant compared to the compound interest of the investment. So yes 1 million is nothing to sneeze at. Unfortunately 1 million will not set you free, it's got to be enough to out pace, inflation, and your wildest dreams.

[@triciabrown1462]

I don’t want to be rich. I want enough to maintain my current lifestyle.

[@bobknob8440]

With my age and income, I'll never be "rich" so I just shooting to have enough not to suffer. My parents have nothing but SS to rely on and it hurts them even though they own their home.

[@tonyxabialonso6596]

Social Security CANNOT run out of money. The trust fund may get depleted but that is a much different thing

[@tylerwright7645]

There already is no money. They spent it.

[@learning.finances]

I agree with Tony. People sometimes makes comments (for example, social security is going to run out.)either without thinking, just copying what others say, and/or lack of understanding. Social security is more of a 17:56 transfer of money from current tax payers to retirees collecting social security then about pulling money from a trust fund.

[@MysteriousFuture]

Also they forget that an ex-Federal Reserve chairman once stated that SS will never run out since the US prints its own currency, but couldn’t guarantee its purchasing power

[@isaacphillips5199]

Really appreciate the content and attitude. Thanks Money Guy!

[@chemquests]

The punchline: to know your number you have to account for inflation.

[@wealthbuildingstory]

It would be really nice to see what amounts we’d need to contribute to get there at age 60, 55, and 50 as well! I think most of this audience wants to retire early

[@ethanhudson3407]

Just pretend you're in your 30s 40s or 50s. If a 30 year old will be 65 in 35 years, you now know what it'll take for anyone to get 2.2 mil in 35 years

[@kay203]

Due to inflation, previously what we've thought a millionaire is nearly 2-3 million nowadays... I think

[@brianmcg321]

No it isnt

[@kyleolson9636]

Millionaire first became a term for the rich in the 1700s, when it would have been closer to $100 million today. Usage of the word started to take off in the late 1800s, when it referred to someone with about $30-35 million today. By 1900 they already realized it was starting to lose some of its meaning, and usage of multimillionaire became common. I believe today when most people use the term millionaire, the lifestyle they picture is someone with at least $10 million in net worth. That is why I think using the term millionaire when doing financial planning for the middle class is misleading, because it conjurs up an image of wealth which becoming a millionaire does not attain.

[@jakinchapman9864]

The social security public trust (surplus from when more people were working than retired) will most likely run out but the program itself is funded by current workers. What this means in light of shrinking population (more retired people than working people) is that your benefits will most likely be less, but not zero.

[@knowen87]

This is the correct way to look at it. Social security can cover 70-80% of it obligations without the trust funds. Social security won't be gone, at worst, it will be a 30% reduction. Another misconception is that social security is some type of investment. It is not. Almost all the money that comes in goes directly back out to those that need it. It was never meant to be an investment and should not be compared to one.

[@brianmcg321]

That chart about pensions just proves that “everyone had a pension” is a myth.

[@1776concernedcitizen]

It's funny how taboo the subject of retirement savings rate is among some Americans. I'm 53, and only became totally focused on retirement at 50. It was then that i started asking where my trajectory was headed. So many people get very angry and indignant about saying that you need more than one million dollars for retirement.

[@tonycrabtree3416]

Good lord 1 million will get you 50k a year. Add social security of 30k a year and life should be fine at 80k per year for most americans not living in expensive cities and states. You DO NOT need the same purchasing power when you retire because your home is paid for, you need less clothing, car usage actually drops, etc…. Your life changes….

[@ctndiaye1]

I spent way too much on stupid stuff over the last 30 years but I did company match and saved some. Downsizing has been the best thing for me. I should have done it many years ago.

[@ErnestSanchez-i6k]

Seriously money guys, y'all are off your rockers. This is fantasy land for the average American. For us regular folks, saving just 200 - 300 per month is a challenge. Life in the pit of the working world is not all peaches and cream like it is for you guys. Thanks for squashing the dreams of regular working stiffs.

[@dewittfamily2995]

Is this 2.2 net worth?

[@nicodimus2222]

"Shaq is rich. The man who signs Shaq's paycheck is wealthy. You can't get rid of wealth. Rich is something you can lose in one summer with a crazy drug habit." -Chris Rock

[@METVWETV]

15% of $50,000 is $625/mo Invested for 40 years is: $4,000,000. NO ONE in this country should retire poor... NO ONE

[@thenaturalmidsouth9536]

A million NW is not a huge milestone any more, and it makes sense. Even at a low rate of overall inflation, the value erodes over time. BTW, The Millionaire Next Door is an excellent book, even today.

[@Lolatyou332]

The first 40% of the years you plan to invest will make the biggest difference overall on how much you will end up with. Focus on maximizing investments today if your in the position to, so that tomorrow when you have more obligations it will be OK for you to slow down on investments for other expenses..

[@rangequeen]

This was amazingly helpful and informative, super appreciate it ❤

[@dforrest4503]

This is a great episode. I kept my lifestyle simple and toward the end of my working career I was able to save almost 50% of my earnings and retired at 55. You are correct that saving some early (if you can max outa Roth and get all of the employer match on your 401k) it’s amazing how much compounding happens in your 40s and early 50s. My midlife ‘crisis’ purchase was a sports car, which was a fun weekend toy. But when it was totaled out in a flash flood and it only depreciated $10k in six years, I took that insurance money and invested it - it was out of my system by then 😂

[@johng4093]

Just a note possibly useful to someone, if you are self employed you can open a Personal 401k and contribute twice as much each year as you could to an employer sponsored 401k. For tech folks given choice to work as employee or (self empl) contractor should consider this.

[@Sylvan_dB]

@@johng4093 The commonly cited limit on 401K only applies to pretax and roth contributions. Some employers allow you to also make post-tax contributions. The total of everything (including employer contributions) for 2024 is $76,500. Those post-tax contributions can be immediately converted to Roth (in some plans and maybe only until the TCJA expires after 2025, unless renewed).

[@RobWilliams007]

Just my opinion: if you have SS and $1 mill and your debts and house are paid off then you could generate at least 10%/ year from that $1 mill. If you get dividends and you can do even OTM covered calls, you can get close or more than that and that is investing very safely. Also, if you have rental property that has cash flow, you should be fine. Move to a state like TN with no state income tax too. I know you hate options but OTM covered calls are very safe - as long as it is still in a tax-deferred or tax free account. If it’s in a brokerage account, there could be short or long term gain consequences but still.

[@covertchannel]

Having a net worth of over a million dollars is not the same as having a million dollars in accessible funds. Lots of net worth is tied up in real estate and 401ks/retirement accounts. That is much different than a million in a brokerage account or in Cash reserves like many “millionaires” have.

[@topezrosser2759]

These numbers-where is the money in the 401k, the Ira, hsa or in stocks?

[@edruffing3796]

Yes

[@Kalvain14]

9:40 It seems really difficult to maintain that savings rate in your early 20s

[@dg5274]

I was barely making $1500 gross at 25

[@kyles1621]

Following your financial order of operations principles, I recently surpassed $1 million in investments at age 36! My wife and I currently have over $400,000 in Roth IRA savings. We started investing at 18 years old and have been very diligent at putting our army of dollars to work. I love your advice and look forward to getting to $2 million by retirement.

[@krezcendo]

What did u invest in lol that’s a lot

[@kyles1621]

@@krezcendo I have a very wide variety across all sectors. Most of the money is in Fidelity ETF's with very low or no fees. About 5% has been "fun money" in individual stocks that I move around from time to time. Best performers have been FXAIX, FENY, FZROX, GE, AGTHX and ANEFX. Money growth is a long term game. I started young and followed those principles. My only debt is my house.

[@AnimsOnDemand]

​@@krezcendo doesn't really matter. He started at 18. He's leaps ahead of most of us here.

[@nothingtoseehere1097]

@@moonlit85 400k at 6% takes 28 years to hit 2 million. He’d be 64. That checks out.

[@kyles1621]

@@moonlit85 you're right. by age 65 it should be much more than 2 mil.

[@shotskieskie]

$130k/yr without a mortgage is a nice lifestyle.

[@fitta74]

I started pretty late investing,in my mid 40's...I invest 30 k a month in mutual funds.

[@Haleum3]

They keep saying "saving per month" but then they are talking about investing. Im confused. Am i saving $1,320 a month and putting it into a savings account or am i saving $1,320 a month and investing it in something long term like mutual funds so it will grow into $2.2m with the annual average market growth?

[@bbqjones]

My guess is mutual funds. Savings won't beat inflation and won't grow your money. I think they are talking about investments that are making 6% a year.

[@ashleysmith4155]

Is there a limit on how much you can make and still draw social security at full retirement age? Seems like I've heard y'all say something about 200k cutting off the social safety net, just want clarification

[@rgood1204]

Invest early. No way I'm going to be working until 65. Thank goodness for early investing and a company pension (which the company stopped for new employees a couple years ago.

[@simplythebest5341]

can you time stamp your videos

[@BlakeC341]

Bummed that there isn't any MoneyGuy merch.

[@schw0373]

I'm in my mid-40s and don't have anywhere near enough to ever retire, even with the pension I'll be receiving from my job.

[@navymathboy]

With the math aspect, it seems for the 20 YO (45 years from the specified retirement age) = (2.2*10^6)*(1+.03)^45=M*((1+.10/12)^(12*45)-1)/(.10/12); solving for M, = $794 (rounded up to the nearest whole dollar).

[@SoParaholic]

What’s the lump sum need for 30s?

[@collegedegree8506]

Having a million dollars isn’t really enough to not work and I would consider somebody rich if they could afford to not work. You need to have a multi-million net worth to afford not to work under the age where you get health benefits from the government and social security. You need to have things like a paid for house, be very handy with repairs, paid for vehicle(s), and like $1.5m in assets at a 4% rule to afford taxes, every insurance (home, auto, health), groceries, utilities, gas, maintenance, phone bill, repair costs, any spending money, a vacation every 2-3 years, etc. Your house could be worth 200k-500k, 2 paid for cars at $5k value each after depreciation, plus $1.5m in investments generating cash at 4% gets you pretty close to a $2m net worth to be rich enough to afford not to work. As dependents increase you’ll need greater wealth though, but just you and a spouse the $2m net worth should be enough.

[@brianmcg321]

You’re terrible with money if you can’t live off $1mil.

[@collegedegree8506]

@@brianmcg321 if you’re 35 with a spouse and don’t want to work with $1m invested and a paid for house, you’ll need to use the 4% rule or similar. That’s roughly $40,000/year. Find me a health insurance plan for both you and your spouse that costs less than $18,000/year. Totaling up $100 wifi, $100 phone bill, $30 trash, $50 tv a month you’re at $3,360/year. You haven’t paid taxes or eaten, or paid for the electric or heat bills yet and already over 50% of your take home. Taxes on my home were just over $3000 last year alone for a 3bed 2bath 1600sqft. You haven’t registered your car(s) or insured them let alone done maintenance on them like tires and oil changes. You haven’t mowed your grass. You don’t work all day, so you need things to do. Your gas bill will probably go up from driving around more, time to visit friends and family more. Plus a vacation every 2-3 years… yeah. You might make $40k/year work, but it won’t be comfortable living even without a house payment. It probably is for people who’ve worked at McDonalds their whole lives making less than $20/hr their whole career, it’ll be a normal living but without work. When the market dips you won’t feel safe and at ease during retirement for 1-3 years while it recovers. You’ll keep busy by making every meal at home because you can’t afford a $50 meal once or twice a week. You won’t own a pool or hottub… let alone both. The electric costs and chemicals/maintenance would be too expensive so you’ll take up gardening and repurposing things to keep busy. Your roof will leak one day and you’ll have $10,000 in repairs or your car will hit 300k miles or someone hits you and finally need to be replaced for the low cost of $10,000. Don’t worry it’s only a 1/4 of your take home. You’ll have a medical issue and have a $1000 bill which your insurance won’t cover because if you want a plan under $25,000/year you’ll get a high deductible plan. You can live on $1m. You can’t enjoy retirement on $1m.

[@johnwesely]

@@collegedegree8506 If you make 40k per year as a couple, you will get essentially free health care from the ACA. Someone aspiring to retire and live off 40k a year probably doesn't care if they have a pool. Whether you can enjoy living off the interest of a million dollars is up to the individual.

[@feldhdleh]

That is a very coherent and simple analysis of the situation which is 100% directionally correct. People simply don't want to believe you or the analysis.

[@nmccw3245]

You just described my life and you are correct.

[@talbotd27]

So here’s what I’m confused about. I’m starting a 401k at age 26, and I have nothing in retirement. Only a small emergency fund. So according to the MoneyGuy wealth multiplier I need to save $209 per month to become a millionaire by the time I retire. However, the amount saved per month continually goes up. So does that mean that by 35 according to their chart I need to save $606 per month? Or since I started at 26 does it stay at $209 forever because of compound interest?

[@renomccoy7986]

Stays at $209 until you stop at 65. Each amount assumes you start at that age with $0 and save an equal amount each month until 65.

[@JojoLannister]

If I were as young as you I’d invest some in Leveraged tech ETF. It’s risky but high reward. If history repeat, if you put $10k u be millionaire in 11 years. I was $30k last year, now already $120k. Sold some TQQQ, SOXL Now I set automatically adding $100/week on EDC, DPST, YINN, TMF

[@JojoLannister]

So it’s $2.2M just in saving+ retirement or all assets including home car?? I know a friend whos mom always broke work as waitress but house worth million due to gentrification.

[@ezekielzauner4245]

thanks for telling us what 2.2 looks like in the future. helps give us youngsters a goal to shoot for.

[@cbbcbb6803]

The worker has to save for retirement. That *sounds* reasonable. The problem is that most workers do not work as professional investment brokers.

[@eugenechurch6135]

Basically impossible to save that amount. Alot of people will be suffering in retirement even though they have done everything right.

[@Trevoristhe1]

they are not going to let SS run out. While I am not banking on it for retirement, I will love the benefit when I retire when it come time.

[@alex5308]

I think 2-3M is the new Millionaire status

[@morbotheturtle3796]

I would simply say wealth is when you assets are able to pay for your expenses based on the income they produce. But ultimately, anyone watching this video is wealthy on a global standard

[@NipItInTheBud100]

What it takes to be rich is different for each person. If your expenses are low then $1 million is considered being rich. If your expenses are out of control then $1 million dollars is nothing!!

[@La_sagne]

i would only need about 700k right now.. lets say 800k to be safe. thatd be about 1.7 million when i retire (because of inflation). so im aiming at 2 million to allow a little lifestyle creep. that should be very doable at my current saving / savings rate

[@FIRE_DrNinjaTurtle]

Now that I have recently hit the million dollar net worth mark, I feel that it is not enough. I now need 2 million. However, I live with n a low cost of living area with a pension so 1 million is a lot of money here.

[@nmccw3245]

That’s how it works. A million is a lot - until you hit a million.

[@You_Can_FOO_It]

@MoneyGuys For your examples based on age, how do you know if you’re on track if you’ve started at a specific age and the savings rate has fluctuated over time?

[@coziii.1829]

I retired at a very early age Live normal don’t let them know . I get 30,000 a month live a normal life but I do travel once a year .