It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

@rogerwheelers4322

3 ай бұрын

Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

@joshbarney114

3 ай бұрын

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.

@FabioOdelega876

3 ай бұрын

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

@joshbarney114

3 ай бұрын

I definitely share your sentiment about these firms. Finding financial advisors like Natalie Noel Burns who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

@FabioOdelega876

3 ай бұрын

Natalie has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.

Stop telling people to draw down 8-10% in retirement

@cstuartdc

5 ай бұрын

Amen. He retires and now a 40% market correction means they now have 1.5 million. They draw out 8% and now they have 1.3 million. That’s not a disaster by any means but now he has 20+ years to make that last. And now at 55 yo he wants his job back during a recession.

@coderider3022

5 ай бұрын

Yip, huge amount of money. 4% is the amount target.

@tmanwheeler8270

5 ай бұрын

@@cstuartdcI understand that but the law of average means after that correction it might go up 25 or 30 percent and he’d make most of that back,right? I don’t know it’s very interesting.

@cstuartdc

5 ай бұрын

@@tmanwheeler8270 yes but he continues to draw at 10% so the effective return is 15%. There’s software out there that run scenarios on this. This is a MATH problem not a psychology problem. The chance of failure (running out of money) becomes significantly higher at 10% drawdown. The wife here intuitively understands this but can’t articulate it the risk. There is chances of success too if the market does very well after you retire. If he absolutely wants him to draw 10% take 3 years of living expenses off the table and put it in cash …use that in downturns and don’t touch your stock mutual funds. On good years and sideways years sure draw 10% and have fun. Having 3 years of living expenses in cash fits the Dave Ramsey principle anyway…especially since if he’s hanging up his work shoes and will never work another day in life. Emergencies become more acute when eventually that happens to all of us.

@cdm9011

4 ай бұрын

@@tmanwheeler8270yes if he wasn’t touching the nest egg it would eventually come back. But he is trying to live on it. You cannot take 8-10% of initial balance a year and expect your money to last. Think about it like this….$2 million and let’s say year one there is a 50% loss, which would be worst case scenario. Now he has $1 million and he takes out 8% of starting balance to live. That brings him down to $840,000! Now let’s say year 2 the market recovers 20% and he takes out another $160k, now he is at $848,000. Then imagine you have a -2% loss the next year. After your living expenses you are now down to $671,000. So as you can see we had a huge drawdown year 1. 50% is about as bad as you can get but it happens. After just 2 more years of normal market movements and you living your 2 million is only 671,000. Even if initial market drop was only 30% much more likely, you still would be nowhere near 2 million. The goose that lays the golden eggs is severely damaged and you will likely run out of money less than 10 years in to your retirement. A helpful thing to remember is how percentages work too, which seems to be over looked. If you loose 50% one year you need a 100% gain just to get back to square one!

It's because the wife knows that an 8-10% withdrawal rate is incredibly dangerous and has a VERY good chance of failure.

@hugostiglitz8465

5 ай бұрын

The $8k monthly expenses is what throttled me. I dont make that in two months salary but I'm doing fine and still save money.

@todd2456

5 ай бұрын

@@hugostiglitz8465 with higher incomes come higher expenses. We are at about $9K monthly. Health insurance alone is $1850/month and property taxes are $1127/month. Car and home insurance is $977/month. Utilities are $400. HOA is $110. It all adds up. And I'm not even including retirement funding of $15,000/month which is a separate line item.

@thedude5040

5 ай бұрын

8k a month if they still have loans on something

@bigshoe84

5 ай бұрын

Cost of living in that area of the country is high also

@USMC6976

5 ай бұрын

@@thedude5040 nope. That was living expenses he stated. Things like property taxes, food, entertainment, etc. I would not be surprised if he needs, $8-10k (or more) a year just to pay the property tax on the home and it will go up every year. She probably likes driving a new car every year or two, so that adds another $4-6k a year for taxes and licenses. She probably likes eating out 4 or 5 times a week at nice restaurants. That's 3k a month. Getting her hair and nails done at least once a week, another $1k a month. Yeah, $8k a month is nothing when you have $150k or more to spend (after taxes) and that is what has been going on in that household. I don't think he included the money mom was shelling out to the kid(s). There's something else going on that he didn't mentioned. It's not about money.

She wants her husband to work. If she's working and he isn't, its going to be a problem for her.

Advising 10% per year withdrawal is CRIMINAL

@amireallythatgrumpy6508

5 ай бұрын

As is retiring before the age of 80.

@mousejackson2523

5 ай бұрын

@@amireallythatgrumpy6508terrible advice.

So the wife is the primary breadwinner and has most likely contributed the lion's share of their current retirement and other savings... and this guy wants to retire while his wife continues to support the family. Her resistance is valid.

Dave is going to get a lot of people in financial trouble with an 8 to 10% withdrawal rate. He really needs to stop saying that, or he’s going to really hurt people.

Your reminder that an 8% withdrawal rate is not only irresponsible but downright idiotic. Dave's already proven he has no clue on this and doesn't understand the Sequence of Returns risk. The most you should withdraw safely is around 5%, although most experts recommend around 4%

@rob8582

5 ай бұрын

Pulling out 10% a year like Dave recommends here will leave you without money in 50% of situations

@alrbredwall

5 ай бұрын

Yet somehow this guy is the subject matter expert with a multi million dollar empire and you are just some loser on the internet.

@masonderwitsch5829

5 ай бұрын

Pull off, not pull out. He's clearly talking about the expected rate of return annually if invested in a good index or mutual fund. That will help Jason counteract his 4 or 5 percent withdrawal rate.

@amireallythatgrumpy6508

5 ай бұрын

The experts are wrong on two counts. 1. Nobody under the age of 80 should retire under any circumstances 2. Any withdrawal rate above 1% is asinine.

@alrbredwall

5 ай бұрын

@amireallythatgrumpy6508 people successfully retire wlon direct violation of both of those points everyday. Comfortably.

She doesn’t want to be the sole income provider while he does nothing. Work a couple more years and retire together when she’s 55

@almaguillot8597

5 ай бұрын

Bingo.

@Observer100-cn7gv

5 ай бұрын

She can retire as well.

@cdsersd2d

5 ай бұрын

This lady is worried about nothing. They are fine. But that said, because they are pretty young, yeah...just work a couple more years and call it quits.

@eddiemalvin

5 ай бұрын

​@@Observer100-cn7gv That's not what the caller said. His plan was to live off his wife's income until he reaches 59 1/2 and can make penalty-free withdraws from his retirement account. He retires, she works. Terrible plan.

@michaelh2282

4 ай бұрын

Ditto. Dave knew this and was strongly hinting at this and the caller was so clueless. She resents the idea of her working her butt off for the next 4 years providing for the family while he goes off and does whatever he wants.

Dave again with his 10% withdrawal rate.

@Richie2k6

5 ай бұрын

Nonsensical and unrealistic.

@philipgerry5228

5 ай бұрын

We all need to use good judgement and be aware of your risk tolerance.

@user-zj4mq1jy2l

5 ай бұрын

@@philipgerry5228- 10% is reckless for any risk tolerance.

@lkj0822g

5 ай бұрын

Yes, he really needs to stop with this nonsense. There are too many Ramsey KoolAid drinkers out there that believe every word he says.

@privacyplease1556

5 ай бұрын

⁠@@philipgerry5228most of Dave’s listeners are dumb and rely on him for financial judgment

George just over there tryin' not to laugh. lol.

Its insane that people think having $2.5 million is not enough to retire. Just represents the Joneses mindset right there. Just cut back expenses, downsize, and find a hobby...

Many people retire without a hobby, so they sit around doing nothing. It isn't about having to work, it's about staying active that keeps you alive.

@blackworldtraveler3711

5 ай бұрын

I have the same interests,activities,hobbies,home projects,etc. as when working. Since retired it’s just a continuation of what I was already doing but without a time clock. Even when I travel my girlfriend and I spend more time in other places. For 2023 it was one month in Brazil. A month on sailboat in BVIs, all summer in an Italian lake view farmhouse in Lugano Switzerland, spent three weeks in LA for a weekend gaming convention, and currently on Kauai from November through January. More like enjoying life with us. We didn’t retire to keep alive. That’s for people with health issues and forced to retire.

@USMC6976

5 ай бұрын

@@blackworldtraveler3711 I don't understand the need for the last paragraph. I am not saying people retired to stay alive. I said keeping busy keeps you alive. That busy is either working or hobbies. In your case, you really have the best of life. Your hobby and job is the same. Thus, you never see work as a necessary evil. But most people do not have that. They retire from work because its stressful, dredgery, but never because they are happy at it. Then, with no hobby or other interest they just sit around at home doing nothing and that creates depression. And that, is what leads them into an early grave. Having other interests that keep you active keeps you living. When your work and hobby coincide, you never retire, but again, you're never really working at a job.

@genxx2724

5 ай бұрын

@@blackworldtraveler3711 I want to do the same. Travel and spend time in places. I’m now financially independent and I think I can afford to do it. But I’m single.

@stewbugz5213

5 ай бұрын

@@genxx2724 you will meet someone traveling! How exciting!

@Observer100-cn7gv

5 ай бұрын

Still their choice. Not for you to analyze. Many are happily retired.

My grandpa's been retired over 20 years.. retired in his early '50s and still doing fine.. nothing's wrong with early retirement!

Maybe wife doesn’t believe Dave’s lie that you can safely pull 8% from your portfolio in your 50,’s. Withdrawing an inflation-adjusted 8% from an equity portfolio is perilous at the best of times, but outright destructive for portfolios that start poorly. Such strategies misfire two thirds of the time if the first year's return is negative (again, after accounting for inflation). It only gets worse from there.

@cdsersd2d

5 ай бұрын

Statiscally, Dave will probably be right. Now that said, I think what you're really saying this that you are scared because the economy is dynamic, not static. I am too, but that said, statistically, Dave is right.

@cdm9011

4 ай бұрын

⁠@@cdsersd2dstatistically Dave is 100% wrong. His 8-10% withdrawal rate idea is based on average market returns not actual yearly returns. It is a proven fact that you cannot draw 8-10% of money off retirement accounts and expect that money to last 30 years. Market returns vary throughout each year and over the long term average a certain 10-11% but on a shorter horizon they can average -1% over a 5year period and 5% over a decade. Imagine $1million and year one the market goes down 30%. $700k and you have planned to pull 10% of a million to live, $100k. Now you are down to $600k. Next year market recovers 20%, you are up to $720k but after living expenses down to $600k. Now let’s say you have 3 years of 10% returns in a row. You are now down to $467k. Then let’s say the market goes down 1% the next year, you are now down to $362k after your living expenses. Just to get your million back you would need just shy of 200% market returns. Otherwise you are about 3.5 years of running out of money. So your retirement went from 30 years to around a decade. And the market movements I described are very normal and could easily happen. 8-10% withdrawal rates do not work.

@cdsersd2d

4 ай бұрын

@@cdm9011 - Thanks. I noticed you used the word "can" and "could easily happen". I am talking statistics. I want to make it perfectly clear that I think 6-7% is better. But again, we are only talking about statistics. So my advice to you is that if you think 4% is right for you, then abide by that rule. But you're not convincing me differently about what the statistic reveal.

@cdm9011

4 ай бұрын

@@cdsersd2dyeah by all means you do you. But please look into this and try and find a single source out there besides Dave Ramsey who says you can safely withdraw 8-10% or even 6-7%. Since you keep mentioning statistics, I would love to see some in favor of that kind of withdrawal rate working.

Love dave. Debt free because of him. But his thoughts on retirement will have you working forever

@amireallythatgrumpy6508

5 ай бұрын

Nobody under the age of 80 should retire under any circumstance

@cdsersd2d

5 ай бұрын

@@amireallythatgrumpy6508 - I hope you're joking.

Sure an easy and reliable 8-10% return per year 😂. Absolutely ridiculous 😂

@SteveKoenig-xp6jz

5 ай бұрын

The S&P 500 has averaged over 11% a year since its inception. Just by being invested in the best companies of general market you can make 11% a year. 8% is a pretty conservative return in terms of stock market yearly returns.

@lepoj

5 ай бұрын

Big difference between averaging 8-10% a year over the long term and making 8-10% every year. BIG difference.

@bennyl7224

5 ай бұрын

@@SteveKoenig-xp6jzplease don’t do this. Sequence risk of returns will destroy you because you are constantly withdrawing 8% in year 1 and adjusting that for inflation upwards, but the market goes up and down as you are withdrawing a high constant amount. Measuring a constant withdrawal against average market returns needs to be tested to find the appropriate number. Will likely only last 10-12 years. 4% will last 30 years at least, and has a good chance of making 50 years

@brianm1603

5 ай бұрын

@@SteveKoenig-xp6jz That's not really how it works.

@keithredsox36

5 ай бұрын

@@SteveKoenig-xp6jzwhat happens if the market is done -10 percent ?

This was the video we were all waiting for!! I was hoping daves cohost was going to talk about the more realistic 4% safe withdrawal rate like he did in the past! Come in George! You are the one with the common sense here!

@gregorypeterson9

5 ай бұрын

He will never question Dave's outdated retirement strategies.

@mikebrown8580

5 ай бұрын

George is on dave’s gravy train , he won’t bite the hand that feeds him

@amireallythatgrumpy6508

5 ай бұрын

Retiring is in and of itself an outdated strategy. @@gregorypeterson9

George knows that his 4% rule is correct and you can see the tension in both their body language. George is just waiting and building his own following slowly but surely, eventually flap flap flap away he'll fly to his own show. still too early, that's why hes taking the slaps from Dave. George has made this calculation already, and knows it's still to early to tell Dave to GFYS

@amireallythatgrumpy6508

5 ай бұрын

It is NOT correct. Nothing above 1% is correct.

@thedude5040

5 ай бұрын

I think people misunderstood Dave. You can take 8% out if you have more aggressive investiments. If the market goes south you use liquid cash and adapt while the market adjusts. After recovery you can go back to 8%

@jrid1118

5 ай бұрын

@@thedude5040 so if you're "aggressive" investment is down then you should you use the money you didn't invest at all?

@thedude5040

5 ай бұрын

@jrid1118 what's the point to a 6-month emergency account in retirement?

@jazzad

5 ай бұрын

I don't think you should ever let your employer treat you the way Dave did to George, even less so in front of a massive audience. I'm saying that without having a fraction of George's talent and recognition. I'm waiting for the straw that breaks the Kamel's back at this point.

Dude spend time with your son. Get out of corporate and enjoy the flexibility of being your own boss.

8% withdrawal is a terrible recommendation . The wife’s playing it safe.

I am pretty surprised the team made this a highlight call after everything went down in November only a month before. Bless all of you who tried to change Dave's mind on the 8% SWR topic. I don't think there is anything else to try.

Dude is tired of grinding in the corporate world period because it burns you tf out. Dave completely misses the point. They have enough wealth for him to get off the stressful hamster wheel and call his own shot. Dave and his wife both need to chill everything is not about more more dollars quality of life sometimes is way more valuable.

@robloxvids2233

5 ай бұрын

Seriously, you ever notice how BS7 isn't "retire"? It's "live and give like no one else. The giving part implies still working. Dave's baby steps do not culminate in retirement and therefore nobody should seek retirement advice from him. He's never been retired, never liquidated 10% of his nest egg, and never looked at the SWR math.

@amireallythatgrumpy6508

5 ай бұрын

You miss the point that he hasn't earned the right to get out of the hamster wheel.

@gregorypeterson9

5 ай бұрын

@@amireallythatgrumpy6508 Maybe when he is mental insane or deeply depressed or suicidal. Then he will have earned it. They have a million net worth and his wife alone make 180k if the roles were reversed it would be just fine.

@amireallythatgrumpy6508

5 ай бұрын

Then they need to trade one hamster wheel for another. Everyone under the age of 80 needs to be in a hamster wheel. There is a reason "human" and "hamster" have the same 1st and 3rd letters. @@gregorypeterson9

@gregorypeterson9

4 ай бұрын

@@amireallythatgrumpy6508 Maybe he can get off when he is clinical depressed or after his heart attack or when he has a stroke 🤔. No YOU missed the point.

Dear Caller , just retire don’t think about your value in the marketplace bs. Enjoy life but keep ur budget under control. I am going to retire at age 41 together with my husband and I’m not looking forward to be in the marketplace that brought me so much stress, anxiety and hatred to people. I can do rice and beans just not to go to work.

@amireallythatgrumpy6508

5 ай бұрын

No sane person retires before the age of 80.

@gregorypeterson9

5 ай бұрын

Exactly 💯

@robloxvids2233

5 ай бұрын

Dave would literally rather this guy spend more time with bosses or clients than his own family. That tells us all we need to know about what Dave values. I'm surprised he didn't name his kids Dollar and Bill.

@imtheowloo

5 ай бұрын

Y'all are just built different. Finance people are usually competitive mofos that can't live with themselves unless they have numerical proof that they are more "valuable" than others in some capacity (like the marketplace). That's why they struggle with self-esteem/masculinity/depression etc. if their ability to make money comes into question. If you can "admit defeat/surrender" in the corporate rat race at 40 and enjoy your life without regretting the money you could've made if you had worked for longer, don't let these stupid finance mofos tell you what you do to self-actualize.

@Westcoastguy

4 ай бұрын

Just curious, what is your nest egg to retire at 41? That seems real young.

If a man wants to sit on his deck and drink lemonade, that is his perogative.

Dave's "math" revolves around the market returning 10% every single year and inflation not existing. Please go somewhere else for retirement advice

@acruzro95

5 ай бұрын

True but inflation math is also a joke but to calculate it yearly and also to project. Is a joke to calculate it yearly because is understate it. And is a joke to calculate it for retirement because one doesn't buy a house every year and one doesn't drive 15K mile every year. Specially with Amazon orders and remote or hybrid work. Or specially once you retire the need for driving becomes less. Almost 50% Of inflation revolves around education, gas and rent prices. Those things either remain unchanged or go lower when you are about to retire.

@analyticalchick3064

5 ай бұрын

and you need money for later life medical expenses, home aides and such.

@donnag7288

5 ай бұрын

Mostly I listen to Dave Ramsey but his 10% return on mutual funds is not realistic. Tell me which mutual funds give you a 10 % return ? And mutual funds also drop when the market drop.

@Thurgor_Supreme

5 ай бұрын

@@donnag7288 Yeah. Not to mention, actively managed mutual funds have a 95% failure rate at beating the market long-term and have ridiculously high management fees.

@ritllc7489

5 ай бұрын

96k Yearly (8k Monthly) is a less than a 4% Yearly Withdrawal (3.84%) on 2.5 Million.

If you invested $100 in the S&P 500 at the beginning of 2000, you would have about $488.05 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 388.05%, or 6.93% per year.

She don't want him home all day doing diddly 😂😂

There's more to life than work and marketplace value. Civics and hobbies is enough to spend the rest of your life doing.

Dave's got awesome advice for people on getting out of debt and becoming wealthy. He has horrible advice on how much you can withdraw from your nest egg.

I’m leaving the workplace at 53. I’m tried of punching a time clock. I’m single no kids no mortgage or any other debt. Excellent 401k and IRA with money in the bank. I’m not quit working but I’m working when I want to.

I retired at 50...3years in no market place value gym or walk 5-6 days a week watch all my sports vacation when my wife is off..haven't regretted it one day!!! Dave's friends who are having trouble need to reevaluate their lives..too each his own..do I get bored sometimes sure but never had one wish to go back to work!!! Retire and enjoy your life dude nobody is promised tomorrow!!!!!

@jasonrabe1664

5 ай бұрын

You're a quitter and a part of the problem.

Caller: I want to spend time with my kids Dave: You're too valuable in the marketplace go do something. LOL

"Understanding your financial situation is key. Have you considered consulting with a financial advisor to assess your retirement plan and explore potential options?"

I can relate. I look at the math but a part of me feels panic with retirement.

Again with the 8~10% withdrawal crap, Dave?

@jeffenriquez9929

5 ай бұрын

If you’re basing it off of average return it’s realistic. The average for S&P is 10.13%. Finding a mutual fund higher than that isn’t hard.

@nelsonw.9483

5 ай бұрын

@@jeffenriquez9929 Reported your post

@ritllc7489

5 ай бұрын

96k Yearly (8k Monthly) is a less than a 4% Yearly Withdrawal (3.84%) on 2.5 Million.

@oboe23able

5 ай бұрын

@@ritllc7489and Dave said he could do $250k which is incorrect.

I feel sad for George. He kept quiet the entire time Dave said the caller could withdraw 8 to 10%. I wonder how long George will stay and work for Ramsey?

@amireallythatgrumpy6508

5 ай бұрын

Probably another 30 years.

@mikeyiorio1880

5 ай бұрын

You can tell George’s body language was uneasy when Dave was saying pull 8-10%

@joefunk76

5 ай бұрын

Knowing better than those you work for doesn’t pay the bills, unfortunately.

@blackworldtraveler3711

5 ай бұрын

I don’t feel anything at all. Just entertainment.

@Iphone3gsFTW

5 ай бұрын

So true. If he says anything he’ll be fired

He seems to be feeling out the specifics of his retirement and there's nothing wrong with that. He needs to not let others sweat/stress him out on specifics of what he wants to do. The day I retired in mid-2016, I didn't have specific ideas of what I wanted to do. It took 2-3 years to decide on my current lifestyle and if I want to make changes, I still can.

Great comments from Dave. Well grounded. Keep it on.

I come from a family with nothing; not bringing in more money is absolutely terrifying to me. I work wide gigs & we are BS7. More money is always better for people like me that came from struggle and nothing

@Observer100-cn7gv

5 ай бұрын

Relax and live. You are gonna stress yourself to death over "money."

@skolvikings354

5 ай бұрын

Save, invest, work a job you enjoy, find a fun side hustle to supplement. Marry someone with similar values especially with money !!

I’m retiring at 40. Wtf is market value? Fuck the market

God, let the poor man retire, Dave. And the wife needs to sit down as well. He is financially fine and deserves to do whatever he wants to do with the rest of his life.

@Thurgor_Supreme

5 ай бұрын

I guess you didn't read between the lines. The wife is the breadwinner and the breadwinner gets to call the shots on retirement. She probably wants to retire comfortably and she aint about to follow Dave's dumb overdraw advice or some financial planner that wants her to scrape along on the bare minimum cost of living

@jimmymcgill6778

5 ай бұрын

I know. Not everyone wants to work 100 hours a week.

@front331

5 ай бұрын

@@Thurgor_Supreme We don't know if the wife was the one building the $2.5m net worth, it's possible he built most of it and wants to lay back and enjoy until 59.5 years to cash out. If that's the case, his ideas pull a lot of weight. If it's your assumption though, she calls all the shots. Why would a woman like that though settle for a man like that?

@Thurgor_Supreme

5 ай бұрын

@@front331 Happens all the time in modern society. Women climb up the corporate office ladder while men grind away on the blue collar hourly jobs

@acruzro95

5 ай бұрын

​@@Thurgor_Supremethey should call the shots together no matter who the bread winner is.

I’m going to face this problem in 15 years. I’m maxing out my 401k and my Roth IRA and in 15 years I’ll have enough in there to live on for the rest of my life. Changing my mindset from “save” to “spend” is going to be hard when it happens.

Holy geezus. 10% withdrawal rate of 2.5 million would be an abject disaster, even if your portfolio was very aggressive at 100% stocks.

When this caller said that he had talked to a financial advisor, that advisor was most likely modeling using the 4% rule. Here is the "maff" with actual data: Assumption #1: $2.5 million, S&P 500 ROI, $100k per year withdrawal (which is a 4% withdrawal rate on the original balance), beginning 1/1/2000. At 12/31/22, you would still have $2.3 million in your account. Assumption #2: $2.5 million, S&P 500 ROI, $130k per year withdrawal, beginning 1/1/2000. AT 12/31/22, you would have $66k in your account. Basically, you will run out of money in 2023. Assumption #3: $2.5 million, S&P 500 ROI, using Dave's $200k per year withdrawal, beginning 1/1/2000. You run out of money in 2010. Hey Dave, have you ever heard of the expression "First, do no harm."? Because that is exactly what you are doing here.

@crusherven

5 ай бұрын

But the financial advisor said they'd be fine, too. I don't like how rough Dave was on this guy, but you're misguided in your criticism. Dave wants him to keep making money--he's not going to go broke if he follows that advice.

@Swyl_

5 ай бұрын

Actually, withdrawing 100k every year since 2000 he would end 2023 with 3.8M$.

@lkj0822g

5 ай бұрын

@@crusherven If he continues to make money, then he is not withdrawing $100k per year out of their retirement accounts. Dave says he could retire now and withdraw 10%, or $200k per year in perpetuity. So no, I am not misguided when I point out that following Dave's investment advice here would put this couple in significant financial risk.

@crusherven

5 ай бұрын

@@lkj0822g his advice to this guy was to keep contributing financially. But sure, keep beating that drum

Once I stop working im only going to withdraw 5 percent a year.

100000 to live on??? I live on 16000 a year...but I don't pay for hair and nail expenses

I rarely disagree with Dave - on these ones, I always do. Yes, it's all about risk tolerance. The historically there should be a ~7-10% return over the long turn, however Dave oversimplifies this and just says you can withdraw up to 10% in perpetuity. All it takes is a few down years in a row like any of the "great recession" type things of a few years with really negative returns paired with pulling out 10% each year to really hammer on that nest egg. ~5 years later you wake up and half your retirement is already gone. Yes, there can be some big gains after that, but because you withdrew during the down times for living expenses, you miss out on the gains somewhat. Factoring in a 10% withdrawal rate is super risky.

Dave worships the "marketplace".

@amireallythatgrumpy6508

5 ай бұрын

Probably because it's the only thing that actually exists.

Dave, quit scaring people into not retiring. My grandpa retired at 55 and is still alive at 97.

@amireallythatgrumpy6508

5 ай бұрын

So she retired 25 years too early?

@RL-ww5ev

5 ай бұрын

He could also be the exception to the rule. Those outliers do exist

@dollargeek4016

5 ай бұрын

How much money he had at 55 when he retired?

@emoney1231

5 ай бұрын

@@RL-ww5ev I think it's much more likely to be correlation and not causation. Interacting with people, moving around, using your brain, and having purpose are all things you MIGHT lose if you stop working. But I bet if you are able to keep up those aspects in retirement, there is no difference or possibly even a benefit to life expectancy by retiring early.

@emoney1231

5 ай бұрын

@@dollargeek4016 Enough.

Amen to the last words

Maybe it's different for men, but volunteer work can be a very satisfying "job" that doesn't take the toll on your life that a job does. I was a high school teacher and retired at 64 1/2 so I could have a life.

It's amazing how Dave knows what the wife is thinking better than her husband...

@corey407woc

5 ай бұрын

Well Dave is a certified simp lol

@30yearsoldiam1

5 ай бұрын

Dave Is speculating. The guy could go be a philanthropist.....not everyone needs marketplace self worth.

@TheFrankybody

5 ай бұрын

In this case Dave is 100% right, the biggest turn off for a woman is a man who stops working/hustle even if he can pay the bills.

@greggpurviance7252

5 ай бұрын

​@@TheFrankybodynot really. Only if the guy is sitting around eating bon Bons & watching soap opras off her money (or playing video games)

@kbanghart

5 ай бұрын

​@@corey407wocsimp... That's a favorite word of guys who are mad at women cuz women won't let the guys control them, right?

biggest risk here is people spening recklessly once they retire

Invest that in good dividend paying stocks and REIT’s and you could easily have $180K a year and never touch the principal.

Seriously …. Best stick with 2%-4% withdrawal rate … definitely no more than 4% …. 10% withdrawal rate is super risky!

I remember Dave saying something like, happy wife happy life. I kept thinking of this during this call. I think there are some other things going on here. Good luck to Jason and his family!

@IntellectualTerritory

5 ай бұрын

Bet you got a man cave you report to, to don't you.

@jmanrock11

5 ай бұрын

The other things that are going on is that he wants to spend time with his son before he goes off somewhere and before he gets too old.

@rustykatt3870

5 ай бұрын

@@jmanrock11 Yes. Jason clearly said that. I hope he and his wife sit down and come to an understanding. That is very important. Is there any possibility that he can take time off work (a leave of absence) to make this happen? Good to look into. I wish him and his family the best.

I am left wondering what the side hustle is. The guy started to say something like "I am handy" so I wonder if he is going to become a handyman or what? I wish Dave had not kept cutting him off. Handymen can make really good steady money, especially with all the single people around who don't know how to do anything practical. And, yes, the 8 to 10% withdrawal figure is ridiculous, especially when the market goes sideways for extended periods or drops like a stone. In retirement, your funds need to be safer than mostly invested in the stock market.

@neeferpd

5 ай бұрын

Correct, and what part of creating a side hustle with a small business equates to not providing value in the marketplace? Geez I always hated Dave's cocky attitude but it's become so painful to even watch anymore the way he doesn't listen to callers or let them speak.

@genxx2724

5 ай бұрын

@@neeferpd Dave’s point was it’s not a side hustle if you retired from your real job.

@stewbugz5213

5 ай бұрын

I was screaming at the screen telling Dave to let the man finish his sentence!

@USMC6976

5 ай бұрын

4% is ridiculous if inflation is 8% and you're only earning 6%. Dave never suggests taking 10% every year unless you're earning 10% + the rate of inflation. What I do see is all the gurus that have nothing claiming how bad his advice is. The 4% rule says you always take 4% regardless. It's based on the assumption you will eventually have $0 left.

@KENTUCKYUSA1

5 ай бұрын

@@USMC6976 I have been retired for 16 years and my rule is to not dip into capital, to live on the excess, so the percentage points mean nothing to me. But it all depends on your dreams for retirement and how realistic they are. Many people delay living for "after they retire someday." Many want to travel extensively and expensively. Many have no savings and some have very large debt. Some have huge living expenses. This guy's wife may have big dreams and want to have a lot of millions. This couple apparently has never had a conversation about their hopes and dreams. There is a young child involved, not sure if the kid is his or theirs. No idea how long this marriage has gone on. I feel they may be many miles apart in vision. But Dave cuts him off and we never learn anything except that the wife is right. I am a wife and I know she may or may not have a valid point. But they are not pulling the load as a team. That is the problem.

Yeah, when this dude is dying he will wish he worked more.

How are you 100% debt free but still spend $8,000 a month?!

@cdsersd2d

5 ай бұрын

She makes $150K, plus he probably makes good money as well. If your family is pulling in $250K per year, that's about $14K per month after taxes. That's not hard to do. Keep in mind they probably bought their house long ago and paid it off.

@charisginn6932

3 ай бұрын

$8k/mo is an extremely reasonable number considering they make enough money to not stress about things like food delivery, frequent travel, expensive hobbies, buying all high quality goods/services, and being generous to family/friends/charities. Sure, they could probably cut back, but isn’t the point of having 2.5M so that you won’t HAVE to cut back?

Did Dave just say “babysitting your kid” during the summer?? What…😮

I don't think that we are hearing the whole truth. If his wife is the breadwinner and will continue to work, then I doubt that she respects his desire to take another step down as a weak provider. He had better man up, or she might find someone who will. Their wealth (probably thanks mostly to her) is beside the point.

8-10% per year is INSANE. You will go broke in 15-20 years doing that. 😂

@dougholdem2898

5 ай бұрын

I'm a little surprised Dave would advise a 55 year old caller that they can withdraw 8-10% a year and not run out of money. With a life expectancy of approximately 30 years, if he goes through a period like we did from June 1, 2000 when the S&P was at 1517 and December 1, 2008 when the S&P was at 735, and all the while withdrawing 8-10% a year, your sorry butt will be broke and looking for a job!

@amireallythatgrumpy6508

5 ай бұрын

You should not retire until the age of 80.

@thedude5040

5 ай бұрын

​@@amireallythatgrumpy6508STFU with your garbage

@amireallythatgrumpy6508

5 ай бұрын

The truth is not garbage. I know you Americans fear the truth.@@thedude5040

@nailatiylluf

5 ай бұрын

@@dougholdem2898he publicly scolded George for saying it should be 4% because Dave has set it in stone that 8-10% is fine and he’s too stubborn to admit he’s wrong. It’s scary so many people may listen and find themselves broke after years of hard work.

I’m 25. I started investing in an S&P 500 through my job. It’s a 457 B plan, I also have a pension. I wish people my age would be more financially responsible with their decisions and that is a prime reason I don’t have anything in common nor get along with a lot of people my age.

@acruzro95

5 ай бұрын

We are a few . Out of every 10 people there is 1 like us

@genxx2724

5 ай бұрын

Same, and I’m 58. It’s not about age. It’s a mindset.

@W.Holden.6

5 ай бұрын

Completely agree. I’m 21 with a couple thousand in 401k through my job. Most kids our age don’t even know what investing is. If they do, they say “I want to have fun with my money.” Like you said, I have nothing in common with them

@genxx2724

5 ай бұрын

@@W.Holden.6 Age 21 is not a kid.

@robertsquared2916

5 ай бұрын

Take it from this 49 yr old, do whatever you can to max that puppy out every year. I know it’s hard, but when I was your age I was going to Vegas twice a year and Miami and I wish had done more investigating and less partying. My net worth is slightly over 1.7 million but if I was focused at your age it be 4 million now.

Saw the title and clicked so I can see if Dave was going to throw George under the bus again because Dave doesn’t seem to understand how sequence of returns works when he references his 10% rule.

@Ubetter

5 ай бұрын

Dave needs to retire. He looks sick.

@amireallythatgrumpy6508

5 ай бұрын

Nobody under the age of 80 has the right to retire. @@Ubetter

@chrissmith-yg5xn

5 ай бұрын

@@Ubettersick? Are u stupid ?

@lot2196

5 ай бұрын

​@@amireallythatgrumpy6508are you really that grumpy?

@summerforever6736

5 ай бұрын

An old fool

My wife is the same way. I'm retiring at age of 54.5 with the IRS rule of 55. I'm 46 and we have net worth of 2.2 million right now. I have already told my wife I'm retiring in 8 years; she doesn't like it. The idiots at corporate I work with don't respect my time and my life. If I die on the job, they move on fast, I have had co-workers die. I'm moving on first at age 54.5 in the year I turn 55! Life isn't about working until you die. I didn't save this money so my kids can drive Ferraris when I die. I do plan on working on the side on my terms like this caller. I plan for a 25 year retirement if not more! by the way, WOMEN should work longer than men and retire later than men because WOMEN outlive men! I told my wife that already! lololol

@Truckerdaddy

5 ай бұрын

Plus they tend to have less physically demanding jobs so it does take as much of a toll on their bodies like it does men

@user-ey4ut9uc8w

5 ай бұрын

I agree with everything you said besides women working longer. You deserve that retirement though champ. I’m glad you’re not sticking around for corporate. Dave’s importance on “marketplace value” is weird. I wouldn’t give a rats ass about the marketplace if I could retire. Plenty of stuff to keep one busy 😂

@megalodon1726

5 ай бұрын

At 55 you'll probably have more than $4M. When it's that time, you can retire and she can't force you to work. Imagine how misogynistic and controlling it would sound if a man told his 55-year-old wife she must not retire when they have over $4M.

@summerforever6736

5 ай бұрын

Agree

I can't understand why Dave kept riding the caller. The caller already said a few times he'd have a side business. The guy clearly isn't going to sit on his butt all day. I totally get the wife, if you have a medical emergency it could wipe people out of their expenses.

(whistles) $8,000 a month! For two people! Damn!

I'm a little surprised Dave would advise a 55 year old caller that they can withdraw 8-10% a year and not run out of money. With a life expectancy of approximately 30 years, if he goes through a period like we did from June 1, 2000 when the S&P was at 1517 and December 1, 2008 when the S&P was at 735, and all the while withdrawing 8-10% a year, your sorry butt will be broke and looking for a job!

@hopefilledfinancial

5 ай бұрын

I would be surprised, but Dave has given this advice on SWRs for well over 5 years to everyone of everyone from 30 through 60 and above.

2.5 million will safely generate around 95,000 a year for 30 years. If you can live off that good. If not you need to keep working. Its that simple.

@imveryhungry112

5 ай бұрын

@@machinesnmetal depends on how the stock market goes. No way to know that. thats the very essence of this call. The wife is afraid theyll run out of money. But 95000 is generated from around 4 percent of 2.5mil. Any more than that and theyll surely run out of money.

If he leaves his current job in the year he turns 55, he can start drawing from the 401k that he has with his current job. Rule of 55. But he needs healthcare through her job, because without Medicare, healthcare is expensive

when dave presses that button on his control panel, the callers never come back.

@mirabella2154

5 ай бұрын

🤣 I think it's the "Mute" Button though.... So the caller is probably in the line, but the viewers can't hear him.

@roathripper

5 ай бұрын

@@mirabella2154 It's such Bond villain play lol

@hopefilledfinancial

5 ай бұрын

@@mirabella2154 From my experience, you can still hear the show, but your mic is no longer hot - like you said, it is the mute button. He can and has pushed it again if he wants to ask more. Not every caller stays on to listen after the BEEP informs them that the mute button was pushed. They had to call me back to ask a question because I jumped off.

She’s doesn’t want to see the principal go down. It’s a mindset thing for her.

That 8 to 10% withdrawal is the reason Ramit made that video 😂

@SPY_0_DTE

5 ай бұрын

Everyone made a video about Dave's 8%. It was great

@genxx2724

5 ай бұрын

@@SPY_0_DTE Including the caller. He’s a very well-informed, well-intentioned, courteous young man.

@hopefilledfinancial

5 ай бұрын

@@genxx2724 Thank you! You are very kind. I am personally surprised that this call from 12/11 made it onto the highlights channel - given how many 8% videos and articles were written.

I say let the man retire at 55. The only thing I would do is cut the expenses down . $8,000 a month is crazy.

He’s in his 50s. He could realistically live another 30-40 years (maybe more). How can he withdraw 10%?? Math does work, but 10% is an AVERAGE. One year it grows 20% and next 0%, that averages to 10%, but they don’t make anything in the second year (extreme example, but it illustrates the point). Seems like he outta withdraw at a more conservative rate and could withdraw more as he ages.

@bennyl7224

5 ай бұрын

Yeah. Dave been called out on this many times. Opening himself up to litigation with pushing it.

Can't you draw money out of your 401k without penalty under Rule 55?

@htran18

4 күн бұрын

Yeah he should totally wait until he’s 55 to retire.

My grandfather retired at 62. He lived until he was 99! He and my grandmother lived a great life together (retired)! Not one regret! His wife needs to put people first not money, especially when they make the money they do! Let the man enjoy his son!

See Dave didn't learn!!

8k monthly? I would like to know where they are spending their money. Do they still have mortgage, kids at home etc? Are they driving expensive cars? We have two kids with mortgage, one is special needs kid and our expense is 8k per month budgeted. If the home is paid off and no kids at home, 4K should be more than enough to live a comfortable lifestyle unless they are spending like congress.

Hobbies, Dave, hobbies... I only work to be able to not need to expend effort for society in the future...and spend all my time doing exactly what I want to do. I could waste the next 50 years away on my hobbies and never have a dull minute. Feeling I am wasting the time is at least half of the enjoyment.

@genxx2724

5 ай бұрын

What are the activities you enjoy? I need ideas.

@diggernash1

5 ай бұрын

@genxx2724 metal detecting, fishing, hunting, smoking meats, target shooting, reloading, accurizing rifles

She's using the math fear as a smokescreen. She doesn't want him sitting around the house all day. Especially if she's making the majority of the family's income. I can understand her being that way. I would, too. And I'm a guy.

@TheRealEdStoner

5 ай бұрын

They both have paid their dues. Either one should be able to retire now.

Yea he could have said 4 percent to get the 100

Math isn’t the issue. She doesn’t want him not working and thus ‘around’ because either she’s up to no good, or she feels he’ll get into trouble.

@Ck-pj3vu

5 ай бұрын

He said she makes most of the money so she doesn’t want him at home spending her hard earned money. He also said I have a kid not we have a kid so he will be using her money to take care of another woman kid. She wifed her husband. I hope she has a prenup.

@front331

5 ай бұрын

I think it's up to who contributed to this $2.5m worth. If it was him doing most of it, he can do whatever he wants and she's a jealous manipulator at that point. If it's not, he's a bum and she should divorce while has a prenup. Up to no good means an affair? That's possible.

@acruzro95

5 ай бұрын

​@@front331why would they divorce over something so stupid? Dude is 55 divorce and then do what? Die alone? Let these people stay married and be together unless they are trying to kill or rob each other they will be fine. The dumbest sht you can do before turning 60 is becoming single. No one wants you , you won't look or do any better, no one knows you other than your spouse you start getting sick and needing company. Why would anyone get divorce at 60 other than for 3 to 5 years of fame is dumb. I've seen it with my own eyes. This dumbass had an affair at age like 60 they she got divorce. Now she's broke and the young guy that was using her for her money is now with younger girl.

@analyticalchick3064

5 ай бұрын

It seems like they're not accounting for inflation and medical expenses. Also, people die mostly between 65 and 95 so that's a wide range and they're not in shape for the longer end of that range.

@michiperkins144

5 ай бұрын

Yes you’re right. She likes the money he has coming in and she can’t control what he’s doing all day not working

Yet another commenter letting you know that the 8% withdraw rate that Dave keeps spouting is insane. If you retire into a down year for the market --or, God forbid, two down years-- you go bankrupt very, very quickly. Dave keeps assuming that the market literally only goes up.

I'm confused. Is the 4% vs 10% drawdown on the principle? I thought you all withdrawal what the principle created???

Didn't once mention the rule of 55.

If he retires, he should do most of the housework since she becomes the primary breadwinner.

As soob as i have enough to retite im out. No amount of money would keep me working if i didnt need to.

She doesn’t want him retiring before her but she’s afraid to say it

@jaysmith6013

5 ай бұрын

Bingo. Can’t stand the thought of supporting a man

8k a month ?! What are they doing! Guy is burnt out , that’s the point. Should be told to cut down and retire for a few years.

Id love to retire at 35. Still gouna be making money but my goal is making money while im not there. Thats being retired to me.

How does someone have 8000 in exspenses each month if they have no debt .. even if property taxes were 1000 a month that still doesn’t add up. Unless they are traveling every month and spending 2000 on food

@charisginn6932

3 ай бұрын

I mean, yeah….if you had 2.5M in the bank, wouldn’t you travel every month and spend $2k on food? We have the perception that those things are ridiculous, but they’re not. They’re only ridiculous for people who can’t afford them, and this couple can

"a lady that makes $160k a year is not stupid" exactly Dave which is why she doesn't believe your horse crap about 10% retirement withdrawals

2,500,000 doesn't equal to a couple hundred thousand a year in retirement. Its more like $100,000 annually with the 4% rule

@amireallythatgrumpy6508

4 ай бұрын

Only an idiot uses the 4% rule. It is only a maximum of $25,000 per year. Never ever withdraw more than 1%.

I have a question for everyone here. If you have 2.5M in retirement accounts can you theoretically roll it into an IRA and just live off the returns? Assuming you’re getting 6-7% returns on it

I retired 10 years ago at 50 with $200K and still going. 😊.

@XxCaptNKnucklesxX

5 ай бұрын

Can you elaborate?

Oh, boy, Dave telling people they can withdraw 8% to 10% of their nest egg per year makes me cringe. You can find analysis on his 4 mutual fund portfolio recommendation (Growth/Growth-and-Income/Aggressive-Growth/International) and there's no way he's had the 11%-12% that he claims over a 10-, 20-, or 30-year period. He may have made around 9% on average, but the risk is _extreme_ .

@masonderwitsch5829

5 ай бұрын

Pull off, not pull out. He's clearly talking about the expected rate of return annually if invested in a good index or mutual fund. That will help Jason counteract his 4 or 5 percent withdrawal rate.

@BrianW211

5 ай бұрын

@@masonderwitsch5829 You haven't watched very many of Dave's videos, have you? He very clearly tells people they can _withdraw_ 8%, and he sometimes says 10%.

@amireallythatgrumpy6508

5 ай бұрын

4% is stupid. So is any other withdrawal rate above 1%.

@bygone8676

5 ай бұрын

The trick is start with 500M like Dave, no worries

@amireallythatgrumpy6508

5 ай бұрын

He will probably start retirement with 2B.@@bygone8676

She “saying” she doesn’t want to reduce her lifestyle! Duh I wouldn’t. They can retire BUT she feels young and doesn’t feel the need to retire.

Dave shouldn't give investing advice. Withdrawing more than 4% is reckless. Don't listen to Dave. 4% is maximum simply because of the sequence of return risk.

@amireallythatgrumpy6508

5 ай бұрын

Withdrawing more than 1% is reckless.

@robloxvids2233

5 ай бұрын

Dave knows how to get out of debt and likely a little about corporate real estate. He knows nothing about investments or retirement.

@87vortex87

5 ай бұрын

@amireallythatgrumpy6508 That's also just a stupid remark on your side. Vanguard does research on sustainable withdrawal rates since the 80'ies and publishes this research each year. 4% is a good rate, that's what everybody refers to when people say 4%. So, now please substantiate your 1% claim with scientific research.

@amireallythatgrumpy6508

5 ай бұрын

Why would I substantiate anything with scientific research when I'm talking to Americans here? Americans fear scientific research or any other kind of fact? Americans make everything up on the spot, including this "Vanguard" nonsense you speak of. @@87vortex87