The Most Important Financial Skill to Learn...

[@DaveM-FFB]

Part of the reason that the "goalposts keep moving" is that people don't take inflation into account. Just imagine a 23 year old in 1980 calculating he would need $1M in investments to retire. Fast forward 42 years to 2022. He's now 65. Using the 4% rule, his $1M only provides $3,300 /month in cashflow. If he has a mortgage or is paying rent, there won't be much left after buying groceries and paying his utilities. If you add in his Social Security, he can probably get by, but it's probably not the retirement lifestyle that he thought $1M would provide.

[@moh6410]

Preserving Capital ( aka keep up with inflation )

[@peter-hr1gl]

There are three that I think are foundational. Understand budgeting, develop one and stick to it. Second things is to put away SOMETHING every paycheck for the long run (retirement or whatever goal is 20-30 years away or more). Put it in stock related investments so it can grow and grow the amount you save every year. Third, become personal finance LITERATE through your own learning. Take charge of your financial life and manage/monitor it.

[@dmoon9037]

@peter correction on #3: PF FLUENT (as a step up from PF LITERATE) - your #1 and #2 are behavioral, and I concur with them - also of value is to internalize some of the systemic constants of the human experience: forward arrow of time / irreversible processes, the acceptance of taxes as entropy collected from the social constructs in which one participates, and taking insurance bets against long tail events (Black Swans) in a form of hanging an economic Sword of Damocles over one’s comprehensive financial plan

[@robstreicher5561]

Excellent Video! You can't buy time.....

[@hoangvu220]

I like your thought process. Your videos are very logical and make sense. (BTW, $10 million 100 thousand is $10.1, not $10.01)

[@SafeguardWealthManagement]

Thank you. And yes, mistake on my part. Thanks for the correction

[@ghostyboyster]

Your chart at 4:20 should read $10.1M not $10.01M as .01M is $10,000 not $100,000.

[@LuckyOne3749]

Eagle-eye Stephen 🙂

[@dmoon9037]

Pro

[@theeminitrader]

I do not comment that often but this one was very inspiring, thanks for touching a subject not often talked about.

[@DJ-nw2ql]

You are wise WAAAAYYY beyond your years. Thank you very much for taking the time to share your wisdom.

[@MILGEO]

Wow, free-diving? My daughter and I are scuba divers. She bought an audible subscription a while back in which she chose many audio books on free-diving of which I think that I listened to every one! I've seen the unusual fins for the sport but never really knew much about it. After hearing all the books, I must say that it takes a special type of person to want to do it! Several actually considering how extreme some free-divers are! It's strange that I kind of like splitting wood too when I have generally just considered it fuel. And I recently bought a new tire for my mountain bike.Now I have no excuses other than being out of shape to do some riding.

[@randolphh8005]

Money does not equal time is SO profound! And, yes many things that bring happiness require little money. We retired 1 and 2 years ago. So glad we did, even though we mostly liked our jobs. Being retired is fun, relaxing, and still fulfilling. Probably should have done it a year or two sooner, and absolutely realize working longer would have been a HUGE mistake. Having more time BTW makes it easier to spend a lot less than we thought possible, with mostly the same results. This happens because you can plan and research expenditures with way more leeway and flexibility to get more value.

[@RodHardin]

Our financial plan changes almost every year because of life events but also things such as taxes, investment returns, etc.

[@alphamale2363]

Spending SS, pensions, dividends is fun. It feels like free money. Selling shares is stressful. Maybe not logical but true. Have lots of the former to reduce stress.

[@sirreptitious6645]

Agree wholeheartedly! The majority of things I “need” to live a good life don’t cost much. Happiness, as the world often defines it, is based on how much we have. But I can choose to be content and “joyful” with much less. A joy - filled life wins over a stuff - filled life!

[@ronloftis9080]

well, I got halfway through the video and I already know how the video will end. With Eric saying "you don't need more money, you need a better financial plan". Of course this is the absolute perfect line for this video.

[@andersonlegacy3136]

Appreciate your content, it very interesting and different than most financial youtubers.❤

[@thomasgreenwood9468]

Great video. Learned a few things about myself.

[@slimdawgwoof]

Great exercise to reflect on what brings you happiness. Both spouses really need to do this individually and then sort of as a couple as well.

[@SFOtoLIH]

Great advice! I retired at 52 years of age after realizing my wife and I had enough money (thanks to investments), and my family’s health history. We figured we have about 20 good years left before our bodies fall apart!

[@andylewis5662]

Another excellent video from you. I appreciate your approach and the concise way you educate us in each production.

[@anujgupta9293]

Very deep and educating video. Thanks

[@TheBeagle1956]

Time > Money

[@loopba]

Great video

[@mainerin_texas-gordon-9598]

If you have to much money and have to take large RMD's, you could fall into the widow(er) tax trap. Going from married filing joint to filing single. Now look at the RMD's and taxes over a few years.

[@jdollar5852]

Tax strategies are more about estate/legacy planning than retirement planning. I never want to pay an extra dime in taxes but, if I have to have a problem, I want it to be paying too much in taxes.

[@bluesky2145]

Runaway inflation can also make what seemed to be a good plan turn into a crappy plan. I have been to many financial planners just to see if they could do a better job than me which they couldn't but what strikes me now is that none of them planned for the possibility of 5 years of 20% inflation

[@davidpowell3347]

Yes,I think deliberately fostering inflation is a failure of government to serve its citizens and is good reason for voting otherwise liked candidates out of office. Did Alexander Hamilton have something to say about a good money system as something for government to strive to provide?

[@thomasgreenwood9468]

How do I buy hedge fund?

[@thomasgreenwood9468]

Is Apple a hedge fund?

[@thomasgreenwood9468]

Is pulling the golden parachute retirement?

[@philblane5752]

I had the opportunity to ask a man who was 103 years old, what was his secret to how he got there. He was unusual because he didn't have a cane, a walker, a hearing aid or glasses. The answer: never retire.

[@ronloftis9080]

Of course Eric likes splitting wood, look at the wall behind him. (face palm)