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the numbers cited there seem a bit high. with a 3% withdrawal rate (very conservative) you need about 2.33 million to get 70k to spend per year, should be around 65k after taxes.
When they talk about yearly income are they talking about gross or net yearly income? I'm always so confused whether the example used 65k net year income or gross year income.
I dont have kids so i plan to use my retirement for myself and if there is anything left i plan to donate to fund scholarship and grants for medical expenses for low income families. I once received a grant to pay off emergency gallbladder surgery and it was life changing. I do want tonstay in really nice hospice or long term care facilities so that is why i put so much towards retirement. I dont want to be in a state funded facility.
This video should have more views! I have not heard this viewpoint before and it's very correct
I paid off my 15 year mortgage in 9 years using the snowball method. Since the rest of my debt was gone I threw every extra dollar I could at it. I started ubering to put more money towards it. My main job was waitressing and at the end of the night I would take the last few guest that walked through the door since none of my coworkers wanted them. They always assumed incorrectly that the tips at the end of the night were never as good as the tips in the beginning. Most nights it was like getting a 30% pay raise. By the way, Erin I love your channel. Sending love from, The City of Detroit.
Great video as always. I made amortization tables and ran scenarios for different extra payments etc. I am doing a little towards curtailment and my current plan if possible is just do one extra payment to principal a year per my family’s advice - one aunt who worked in real estate and one who is a CPA.
Another tip would be to stop investing for the first 3-5 years of a mortgage and focus on reducing the principle as much as possible before transitioning back. Remember you will be paying mostly interest for the first half of the mortgage. Another tip is home values go up is to to get a HELOC and do what is called cash flow banking where each month you use 100% of your paycheck to to bills, the HELOC becomes your emergency fund letting you use all of your incoming cash to reduce debt.
40 percent of American adults own their home outright!? That seems incredibly high considering how many can even come up with $1000...
I have a Vanguard, Fidelity, Robinhood, Coinbase account. Run all my spending through credit cards, 95% of through Fidelity's cash back, paying statement full on everything every month. Life is good. For now.
I'll be honest, I recently hit 1M Net worth alone at age 44, I finally feel wealthy. Not that a million is a ton of money, I feel that way because my monthly expenses are $2700 and my passive income is over $3200. On top of that, I make $240,000 a year (gross). So I have a lot of leftover money each month. Savings are north of $13,000 a month. I bust my bum to earn that and feel proud of what Ive accomplished at age 44. My current 'problem' is deciding when to call it quits. Every year I work I save so much that I feel like it's worth continuing. I will hit 2M Net worth by age 48/49 at current savings rate and 5% growth [conservative]. So that's my goal....not that my life will change having 2M saved vs 1M. I just feel like that's the buffer I need to retire at a [relatively] young age.
My house pretty much paid itself off. Every mortgage payment I made I then borrowed back via a readavanceable 2nd mortgage (aka HELoC). Invested the $ borrowed via that 2nd mortgage. The investment paid the interest due monthly on the 2nd mortgage AND paid for extra principal payments on the 1st mortgage. Which I then borrowed back via the 2nd mortgage and put into the investment. Repeated this cycle until the 1st mortgage principal was paid. And the investment balance itself then paid off the 2nd mortgage. Took me 15 years (from house purchase to a zero mortgage balance). Additionally, I lucked out because the interest rates during those 15 years reached all time lows. Meanwhile, the investment generally grew during those 15 years as it occurred during mostly a period of rising bull equity and bond markets. Moreover, home prices rose dramatically during those 15 years. This rising house value allowed me to borrow more money via a 3rd mortgage. Used that money to fully renovate the house. The 3rd mortgage was later consolidated with the 2nd mortgage. In the end, my cash out of pocket was the original 20% down payment ... which now amounts to 5% of the house's current value. That's how the house pretty much paid for itself. Required bravery + good luck.
A million is not nearly enough, unless it comes with a fully paid off home and $48K from Uncle Sam. The wife and I (67/62) have about $1.2M with everything liquidated and get only $30k annually in SS. We plan on moving to Mexico in order to make ends meet.
Nope. Boomers are ALL bad and just deserve everyone's hate. Just ask the internet. /s The CHAMPIONS of frugality were people who were children during the great depression, but for the boomer children who actually absorbed the idea of frugality (even if to a more moderate extent), it REALLY helped save a lot more for retirement.
I had a great life working, retirement creeped up on me. If you save say 3 years of expenses while your working you have the independence to tell off your boss and the the time to figure out a new move. If you have to live like the Jones , you’re definitely screwing yourself. Money does not equate to happiness, it just maybe give you independence, use it wisely.
I started late but at 66 I have just hit 1,200,000 my plan is to retire in 10 months. My GF will work another 4 years so I might work part time and just live off SS and that and let it grow to 1.5 million when my GF calls it quits. I have been very fugal for the last 15 years. Last year I took home 110K and saved 75K. So I can easily live off just my SS. The key to it is never live at your income and the money you save young will be worth 4-5 times what you save at the end of your work life.
I bought my home just before the Great Recession and just making payments was tough. As interest rates improved I refinanced and boosted my retirement investments to match.
Love the bloopers, you're doing great keep it up!
A strategy I've used is taking the interest earned from my emergency fund and putting that towards the principle every month. If you have a 12 month emergency, the amount going towards the principle could be significant.
I would argue that you are losing the power of compounded interest!
For benefits like ACA and the FAFSA, mortgage debt/payment is not deducted from assets or income. So it is better to own a home than have the same amount of money.
A great rule to follow if you have a 30yr loan at a higer rate. 6% or above. Make sure to invest 15% in retirement min. Before extra mortgage payments
The "secret" to paying off a mortgage early is just to put additional money toward the loan principal. How you do that is up to you and your budget. Too many people say that they just can't afford to pay more. But look at it this way. How many people spend $20 per week eating fast food, buying coffee, buying beer, whatever. If they just took that $20 per week, or $80 per month, and applied it to their mortgage principal each month, they could pay off a $400k, 7% interest 30-year mortgage in just over 27 years while saving $60,000 in interest.
What im doing is putting my extra payments into an investment. My expected payoff in in 10-15 years. Which is a long enough time investing in an index fund. It should be safe. Im also putting my escrow in there instead of putting it in the loan. On down years ill pay escrow out of pocket. On up years ill pull escrow out of the fund. Which should just be capital gains based on when i withdrawal. Ill end up paying more interest. But... ill pay off my house 5 years earlier or more. Original time from was 15-20. Putting the escrow in there doesn't add a lot.. but.. after 10 years i should have 3x the escrow i need and continue to grow. By the time i retire that escrow fund will be self funded. Meaning i should be able to withdraw 2-4% and it be enough to pay escrow even approoximating future inflation. Allowing escrow to never be a factor for the remainder of my life. So far so good.
I actually refinanced my home loan from one company to another because they weren't applying a bi-weekly payment bi-weekly. They were just holding they money until the next bi-weekly payment came in, then making one monthly payment...
We opted for a 15 year mortgage instead of 30 years.😊
The petrodollar agreement stipulated the Kingdom of Saudi Arabia's commitment to sell its oil exclusively in US dollars and invest its surplus oil revenues in US Treasury bonds. In return, the United States provided military support and protection to the Kingdom.
The United States concluded this agreement with the Kingdom of Saudi Arabia shortly after the United States left the gold standard for the dollar, which then had far-reaching consequences for the American economy and global finance. It still exists today.
However, despite the importance of the agreement, there has been no news yet about Saudi Arabia taking any step towards renewing the agreement again or even Comments from Washington.
This week witnessed the end of the Petrodollar Agreement that the Kingdom of Saudi Arabia had signed with the United States 50 years ago, in June 1973.
Hey Erin , Sent you the emial , Lmk if you have received it or not ?
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Personally I prefer to invest in real state rather than paying off my mortgage. Pretty sure that I should be able to get a return higher than the interest rate plus the assets last me a lifetime.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
When my wife and I bought our house in 1991 interest rates were in the low 8% range. I made extra principal payments each month in the amount of the next months principal according to our ammortization schedule. My reasoning was that each extra payment I made shortened the loan by 1 month. We eventually refinanced for 7 yrs at 5% and then paid it off in 2013.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Some loan servicer dont allow biweekly payments like ours. So what i did was take our monthly mortgage amount. Divided that by 12 then add that to our monthly mortgage payment towards principal 😀
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Had 2 home loans.. paid off both - borrowed lumpsum at low interest 4 year personal loans from Middle East, where I live. Both times the bank told me not to and that amount can be invested elsewhere.. but I said clearing mortgage comes first. Now im at peace because of this.. ❤
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Originally had a 30 yr mortgage that we refinanced once and then made extra payments. Paid it off in Feb 2024 (took 9.5 years total to payoff). We prioritized saving for retirement 1st, then used extra for the mortgage. Could we have received a better return on our $ by investing? Probably. However the debt-free piece of mind is really something special.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Don’t for get about taxes and insurance. I didn’t think about this when buying and it heavily changed things for me.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Zero based/ cash stuffing
20 year mtg at 3.25%. (Bought at age 23) No intention to pay off early
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
I've started overpaying my mortgage, 12 years left. I want to payoff in two years. Triple payments
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
I've been seeking videos like this! Subscribed, and I'm ready to pursue my dreams! ˎ "Every challenge is an opportunity for growth.."
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
8:33 after the trump tax changes almost no one can itemize, so very few people get any tax benefit from mortgage interest and if you are diversified, ie have bonds and international stocks in your portfolio which most target date retirement funds do, then your real rate of return is probably going to be closer to 5% investing. Id say if you have any debt at rates above that, then thats where you should be putting extra money.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
I'm already looking forward to your next video, keep 'em coming!
Yes flexing here haha. But I paid off my mortgage 25 years before I am even eligible to retire. Peace of mind is a big thing. Financially smart? Definitely not! I could've easily made more by just socking the money to treasury and still make money after taxes, but like most things in life, the decision is not logical or rational. 😂
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Paid off the Mortgage years ago, Now if there was a way of paying off the property taxes!! Great information Erin.
Haha! 🤣 if only!!
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
Another great video! One other option I've heard about is to include the next month principle during the first few years of the mortgage. This is where most of the interest is generated. you may not be able to do it all the time, but It helps.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
The tax deduction on a mortgage only applies to itemized filers. Most Americans take the standard deduction, so it’s moot.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
We refinanced our home in Dec 2021 to 2.75% Balance was $903K at the time. Paid it off in 30 months. Best feeling ever.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
When most young people can't afford a mortgage, this is not valuable advice. All this says is, if you pay more money, you will pay off your debt sooner. I especially disagree with "if it feels better" part. The point should be to teach to override that feeling with hard calculated evidence.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
9.5 years left on the mortgage. Tempted to just finish it off.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
I always round my balance off to the neatest $100 after each payment. Even more if I can afford to.
oh yeah, 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 TOMAS CALEZ ANTONIO hooked me up with a late-stage fund that got me in on private shares of some hot companies before they hit the market or blew up. Those investments totally paid off when the companies went public and their stocks shot up. Now, I’m stoked because I’m heading into retirement with almost million bucks in my portfolio.
I am now accepting applications for sugar mamas.