$1M Is NOT ENOUGH Money to Retire Anymore - Here’s How Much You’ll Need
Published: 2024-03-24
Status:
Available
|
Analyzed
Published: 2024-03-24
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Following the 4% rule for retirement funding is estimated to last for 30 years.
"if you follow the 4% rule you should be able to fund your retirement for 30 years"
Pending
With a consistent 6% inflation rate, a retirement fund intended to last 30 years would only last 16 years.
"if you consistently saw 6% inflation now this wealth that you built up isn't going to last you 30 years it's only going to last you 16 years"
Pending
To generate $40,000 annually in cash flow with a 3% cash flow return on investment, one would need to invest $1.3 million.
"if your Investments pay you say a 3% return 3% cash flow not 3% growth in the value of the Investments but 3% of cash flow which is money I'm getting without having to sell my investments now I would need to invest $1.3 million to generate this $40,000 a year in cash flow"
Pending
Achieving a 5% cash-on-cash return would require an investment of $800,000 to generate $40,000 in annual income.
"if I can get a 5% cash on cash return on my money Now I would have to invest 800 Grand to generate this $40,000 a year"
Pending
Following the 4% rule is projected to sustain retirement funding for 30 years.
"if you follow the 4% rule you should be able to fund your retirement for 30 years"
Pending
A 7% cash flow return would necessitate an investment of $570,000 to yield $40,000 per year.
"if I can get a 7% return on my money Now I'd have to invest $570,000 to get this $40,000 a year in cash flow"
Pending
A 3% cash flow return means receiving 3% of the investment's value annually without selling the asset.
"if your Investments pay you say a 3% return 3% cash flow not 3% growth in the value of the Investments but 3% of cash flow which is money I'm getting without having to sell my investments"
Pending
At the time of recording, 3M offered a 5.8% dividend yield, Walgreens a 5.7%, Philip Morris a 6%, and AT&T also a 6%.
"3M is paying about a 5.8% dividend Walgreens boot Alliance is paying around 5.7% Philip Morris is paying around 6% and AT&T is paying around 6% as well"
Pending
The speaker aims for at least a 7% annual return on real estate investments.
"When I invest in real estate my goal is to get a minimum 7% annual return on my money"
Pending
To generate $40,000 annually in cash flow from the mentioned dividend stocks, an investment of approximately $700,000 would be required.
"based off of these numbers you'd have to invest right around $700,000 into one of these stocks in order to generate $40,000 a year of cash flow"
Pending
At the time of recording, SCHD offered a 3.4% dividend yield, VYM 3%, NOBL 1.9%, and SDIV 13.3%.
"sCD is paying about 3.4% vym 3% no o 1.9 9% and sdiv 133%"
Pending
As of the recording, McDonald's offered a 5.8% dividend yield, Walgreens Boots Alliance 5.7%, Philip Morris 6%, and AT&T 6%.
"McDonald's is paying about a 5.8% dividend Walgreens boot Alliance is paying around 5.7% Philip Morris is paying around 6% and AT&T is paying around 6% as well"
Pending
Specific ETFs had the following dividend yields: SCHD (3.4%), VYM (3%), NOBL (1.99%), and SDIV (133%).
"SCD is paying about 3.4% VYM 3% NOBL 1.9 9% and SDIV 133%"
Pending
The speaker aims for a minimum 7% annual return on real estate investments, projecting $70,000 in annual passive income after expenses from a $1 million property.
"my goal is to get a minimum 7% annual return on my money so if you invest a million dollars into a property let's say you buy a small apartment complex then my goal would be to make $70,000 a year in passive income profits after paying all your expenses from owning this property"
Pending
To increase wealth, housing costs should ideally be around 20% of income, rather than the typical 28-33%.
"if you really want to become wealthier you want this to be closer to 20% where now your housing costs are significantly a smaller piece of the amount of money that you're bringing in"
Pending
A $1 million property may qualify for a $25,000 annual deduction for approximately 30 years due to depreciation.
"if you have a million doll property is you get to take a $25,000 deduction every single year for the next 30 or so years because the property that you own is just one year older"
Pending
Purchasing a 4-unit building allows the owner to live in one unit while tenants in the other three pay the mortgage.
"when you go out and you buy a 4unit building you can live in one of the units yourself and your neighbors can pay a mortgage for you"
Pending
After accounting for a $25,000 depreciation deduction on $70,000 of real estate income, resulting in a taxable income of $45,000, the estimated tax liability would be around $5,000, leaving approximately $65,000 in profit.
"if you tell the IRS that you made $45,000 in income from your real estate property you're going to have to pay around $5,000 in taxes because you don't have to pay social security taxes or Medicare taxes you only have to pay your income taxes which means you are going to be left with right around $65,000"
Pending
Reallocating approximately 3 hours of daily TV time to learning or building activities can increase income and wealth.
"if you can convert those almost 3 hours of TV time a day to learning time or building time this is going to allow you to not only earn more but build more wealth"
Pending
Between December 2010 and December 2020, VOO increased from $100 to $340 per share, and SPY increased from $125 to $375 per share, representing approximately a 300% growth over the decade.
"between December 2010 and December 2020 one decade vo went from $100 a share to around $340 a share and spy went up to $375 a share so both of these funds saw right around a 300% increase over one decade"
Pending
Lacking even $1,000 in savings puts individuals in a precarious financial situation.
"if you do not have $1,000 saved up you are in a financial danger zone"
Pending
Investing $940,000 in 2010 and withdrawing $60,000 (6% of the initial $1 million) annually, while seeing profitable growth, indicates a sustainable withdrawal strategy.
"if you live off of 6% of your income now so meaning in 2010 you take $60,000 out so now you have $940,000 to invest and you put it here or here you would still see a profitable growth"
Pending
Automating finances by setting up automatic investments, savings, and spending allocations is crucial for achieving financial goals.
"you need to automate your Finance right now you're going to have some money automatically invested you're going to have some money automatically saved and you're going to have some money put aside to spend"
Pending
The most effective method to accelerate wealth accumulation is by increasing income at a faster rate than spending.
"the fastest way to increase your wealth is to increase your income faster than you increase your spending period"
Pending
Statistically, the majority of Americans tend to end up in a worse financial situation after receiving raises, often due to increased spending.
"statistically is that when the vast majority of Americans go out and make more money they end up in a bigger Financial hole"
Pending
Lacking $22,000 in a savings account is considered a financial danger zone.
"if you do not have $22,000 saved up in a savings account... you are in a financial danger zone"
Pending
Paying 20-30% interest on credit card debt while aiming for a 5-10% investment return results in a net financial loss.
"if you're paying 15 20 25 30 30% in interest to your credit card company but you're trying to get a 5 to 10% return here you are losing in this game of money"
Pending
Achieving greater financial freedom than most people requires making sacrifices that others are unwilling to undertake.
"you got to be willing to put in that sacrifice that nobody else is willing to do you can have way more freedom than most people dream about having"
Pending
Stocks, real estate, and businesses are identified as asset classes that have historically demonstrated effectiveness in building wealth.
"stocks real estate and businesses have been time tested to prove and build more wealth than any other asset class"
Pending
Purchasing a 4-unit building and living in one unit allows tenants in the other units to cover the mortgage payments.
"if you go out and you buy a 4unit building you can live in one of the units yourself and your neighbors can pay a mortgage for you"
Pending
After living in a multi-unit property for over a year, one can move out, rent out their former unit, generate cash flow, and repeat the process with another property.
"you have the ability to move out and have somebody else live there now hopefully this will start generating you some cash flow and then you can start this process all over again"
Pending
Reallocating approximately 3 hours of daily TV time to learning or skill-building activities can lead to increased earnings and wealth accumulation.
"if you can convert those almost 3 hours of TV time a day to learning time or building time this is going to allow you to not only earn more but build more wealth"
Pending
Many people prioritize immediate gratification and projecting an image of success over long-term wealth building.
"the reason why so many people won't do this is because they want to have the nice things today we want to have the fast stuff today we want to have the nice stuff today we want to look like we made it today"
Pending
Wealthy individuals invest their earnings to generate further income, whereas less affluent individuals often spend money to create an appearance of wealth.
"wealthy people work hard to earn money to buy things that make the money they're working hard to to make money so they can make more money broke people make money to look like they made money"
Pending
Having less than $1,000 (ideally $2,000) saved is considered a precarious financial position.
"if you do not have $1,000 saved up I like to say $2,000 but if you do not have $1,000 saved up you are in a financial danger zone"
Pending
A key distinction is that wealthy individuals can afford the full purchase price, while broke individuals only consider the monthly payment.
"the difference between a broke person and a rich person when it comes to spending money is a broke person says oh I can make the $50 a month payment so I can afford to buy that cell phone a wealthy person says I can afford to buy that $1,000 phone so I can actually afford it"
Pending
Significant savings of 10-30% on utility and service bills can often be achieved by negotiating with providers.
"you can save 10 15 sometimes 30% on your bills but just calling up these companies and nicely telling them that their competitors charging a much lower rate"
Pending
Currently, high-yield savings accounts offer interest rates of 3-5% annually.
"you have a lot of highin savings accounts that are paying three four 5% a year in interest on your savings"
Pending
Achieving wealth and early retirement in one's 40s is unlikely through small annual raises and 401k contributions alone.
"if your goal is to become wealthy in your 40s and potentially retire in your 40s it's not going to happen by getting small annual raises and then contributing money into your 401k"
Pending
To attain financial freedom sooner, it is necessary to have more capital actively working to generate income.
"if you want to have this Financial Freedom sooner rather than later you need more money today going out to earn you more money"
Pending
When earning more, it's crucial to avoid increasing spending and instead focus on building wealth to prevent falling into a financial hole.
"the key here is now when you start making that extra money don't keep blowing the money the way that you were before because now is time for you to build your wealth upwards instead of digging yourself into a financial hole like you've been doing"
Pending
Investing $1 million in McDonald's stock at the time of recording yielded $25,000 annually from dividends.
"if you invest a million dollars into the McDonald's stock you will make $25,000 a year from your McDonald's investment"
Pending
Investing $1 million in IBM stock at the time of recording yielded $50,000 annually from dividends.
"if you invest a million dollars into IBM you will make $50,000 a year in passive income from dividends"
Pending
An investment of $1 million in the VO ETF in December 2010 would have grown to approximately $3 million by December 2020, representing a 300% increase.
"if you put a million dollars here or here in December 2010 you would have something around $3 million over here"
Pending
An investment of $1 million in the SPY ETF in December 2010 would have grown to approximately $3 million by December 2020, representing a 300% increase.
"if you put a million dollars here or here in December 2010 you would have something around $3 million over here"
Pending
At the time of recording, the SCHD ETF was paying approximately a 3.4% dividend yield.
"SCHD is paying about 3.4%"
Pending
At the time of recording, the VYM ETF was paying approximately a 3% dividend yield.
"VYM 3%"
Pending
The NOBL ETF exclusively focuses on S&P 500 Dividend Aristocrats, companies that have grown dividends for at least 25 consecutive years.
"NOBL. this is the only ETF focusing exclusively on the S&P 500 dividend Aristocrats"
Pending
The SDIV ETF invests in 100 of the highest dividend-paying equities globally, aiming to increase a portfolio's yield.
"sdiv 133%... SDIV invests in 100 of the highest dividend paying equities"
Pending
At the time of recording, 3M was paying approximately a 5.8% dividend yield.
"3M is paying about a 5.8% dividend"
Pending
At the time of recording, Walgreens Boots Alliance was paying approximately a 5.7% dividend yield.
"Walgreens boot Alliance is paying around 5.7%"
Pending
At the time of recording, Philip Morris was paying approximately a 6% dividend yield.
"Philip Morris is paying around 6%"
Pending
At the time of recording, AT&T was paying approximately a 6% dividend yield.
"AT&T is paying around 6% as well"
Pending
The speaker's investment goal for real estate is to achieve a minimum of 7% annual return.
"When I invest in real estate my goal is to get a minimum 7% annual return on my money"
Pending
A $1 million investment in a small apartment complex is projected to generate $70,000 annually in passive income profits after expenses.
"if you invest a million dollars into a property let's say you buy a small apartment complex then my goal would be to make $70,000 a year in passive income profits"
Pending
A real estate investor might pay approximately $5,000 in taxes on $45,000 of taxable income, due to depreciation deductions.
"if you tell the IRS that you made $45,000 in income from your real estate property you're going to have to pay around $5,000 in taxes"
Pending
The speaker aims for a minimum 7% cash-on-cash return on real estate investments, meaning 7 cents of profit for every dollar invested, excluding appreciation.
"When I invest in real estate my goal is to get a minimum 7% annual return on my money"
Pending
A $100,000 all-cash real estate investment is expected to yield $7,000 in profit after all expenses.
"if I was to invest $100,000 let's just say into this property and I bought this property all cash I would want $7,000 of profit being deposited into my bank account after paying all of my expenses"
Pending
Real estate returns can vary by region, with some areas offering 3-5% returns and others providing 7-10% returns.
"you have other areas in the country that might be 3 to 5% returns you have other parts of the country that might be 7 to 10% returns"
Pending
Certain real estate markets can yield returns of 10-15%.
"you have other areas that will be 10 to 15% returns"
Pending
Lacking $22,000 in savings places an individual in a financial danger zone.
"if you do not have $22,000 saved up in a savings account... you are in a financial danger zone"
Pending
Having less than $2,000 saved up indicates a financial danger zone.
"if you do not got $2,000 saved up... you are in a danger zone"
Pending
Credit card interest rates can range from 15% to 28% annually.
"credit cards are charging you 15 18 21 25 sometimes 28% a year in interest"
Pending
Statistically, when Americans earn more money, they tend to increase their spending on cars, homes, or vacations.
"when Americans go out and they get more money they go out and they buy a faster car they buy a bigger home or they go on a vacation to celebr"
Pending
It is advised to maintain a small lifestyle for about six months after receiving a pay raise to allow for increased investment.
"When you start making more money keep your lifestyle small for a little while call it like a six-month delay"
Pending
Stocks, real estate, and businesses are identified as time-tested asset classes proven to build more wealth than others.
"Stocks real estate and businesses have been time tested to prove and build more wealth than any other asset class"
Pending
The average monthly payment for a new car is currently over $700.
"The average new car payment today is over $700 a month"
Pending
Realtors and banks typically recommend that 28-33% of gross income be allocated to housing payments.
"if you go to a realtor if you go to a bank they're going to give you somewhere between 28 to 33% of your gross income going to your housing payments"
Pending
To increase wealth, housing costs should ideally be closer to 20% of gross income.
"if you really want to become wealthier you want this to be closer to 20%"
Pending
Renting out a primary residence shortly after obtaining a mortgage for it is generally not permitted by lenders.
"when you go and get a mortgage for your primary residence... you can't the next week go rent out this property"
Pending
The average American watches approximately 3 hours of television per day.
"the average American is watching about 3 hours of Television AKA Netflix a day"
Pending
Converting approximately 3 hours of daily TV time into learning time can lead to increased earnings and wealth building.
"if you can convert those almost 3 hours of TV time a day to learning time"
Pending
Lacking $1,000 in savings indicates a financial danger zone.
"if you do not have $1,000 saved up you are in a financial danger zone"
Pending
A minimum of $1,000 should be saved to establish a financial cushion.
"if you do not have $1,000 saved up... you need to put aside at least $1,000"
Pending
Buy Now, Pay Later services have made it increasingly easy to finance non-essential purchases like clothes and groceries, contributing to financial instability.
"Broke now broke later it has become even easier for you to finance things like your clothes and even your groceries"
Pending
Banks profit from customers who exhibit financial illiteracy, particularly those who spend money they do not have.
"Banks love it they love it when you are financially stupid and the reason why is because if you're if you're financially stupid you're going to go and spend money that you don't have"
Pending
Customers can request banks to waive overdraft fees, and banks are often willing to do so, especially for first-time occurrences.
"if you do accidentally overspend on your bank account... call up the bank and tell them hey I accidentally overspent... can you please wave my overdraft fee"
Pending
Paying fees to cash checks is unnecessary; opening a bank account provides a free alternative.
"if you are paying money to cash your checks stop doing that open up a bank account"
Pending
Payroll advance services charge fees to provide early access to earned wages.
"payroll companies... extending you your payroll advances for a teeny tiny little fee"
Pending
Late fees are considered purposeless payments incurred for missing bill deadlines.
"late fees are a fee that you're paying for no purpose"
Pending
Being polite with customer service representatives is more likely to result in favorable outcomes for the customer's wallet.
"Be nice because if you're aggressive and angry and upset with them they're going to be aggressive and angry and upset with you"
Pending
Individuals lacking $1,000 in savings should refrain from dining out.
"if you do not have $1,000 in your bank account you should not be seeing the inside of a restaurant"
Pending
Individuals without $1,000 in savings should prioritize financial stability over entertainment expenses.
"if you do not have $1,000 saved up you should not be worried about entertainment right now"
Pending
To save money, it is advised to cease shopping at malls, department stores, and online retailers like Amazon.
"no more shopping that means no more going to the mall no more going to Macy's no more going to amazon.com block that website if you need to"
Pending
The 24-hour rule is suggested to mitigate impulse purchases by allowing time for consideration before buying.
"give yourself 24 hours to decide if you really need it"
Pending
Negotiating utility and service bills by mentioning competitor rates can lead to savings of 10-30%.
"you can save 10 15 sometimes 30% on your bills but just calling up these companies and nicely telling them that their competitors charging a much lower rate"
Pending
High-yield savings accounts currently offer interest rates of 3-5% per year.
"highin savings accounts that are paying three four 5% a year in interest on your savings"
Pending
To accelerate saving an extra $1,000, individuals should focus on earning additional income.
"If you want to accelerate your path to getting that extra $1,000 you got to get some extra money money as well"
Pending
For those with jobs, seeking extra hours, raises, or promotions can increase earnings.
"If you're working a job see if you can put in some extra hours see what you got to do to get a raise see what you got to do to get a promotion"
Pending
Establishing a financial system and automating finances is crucial for managing money effectively.
"you need to create a financial system you need to automate your Finance"
Pending
The 75/15/10 plan suggests allocating 75% of earnings to spending, 15% to investing, and 10% to saving.
"a simple thing that you can follow is something like a 75151 plan which says that for every dollar that you earn from here on out 75 cents is the maximum that you can spend 15 cents is the minimum that you invest 10 cents is the minimum that you save"
Pending
The initial financial priority should be to save a $2,000 cushion as quickly as possible.
"the very first thing you got to do is you got to give yourself a $2,000 cushion you got to save $2,000 as fast as possible"
Pending
After establishing a savings cushion, high-interest debts like credit card and payday loans should be paid down rapidly.
"the second thing you got to do is you got to pay down your high interest debts your credit card debts and you're pay loans as fast as possible"
Pending
Creating a system for managing money is essential.
"the third thing you got to do now is you need to start creating a system for your money"
Pending
Tracking income and expenses through spreadsheets or other methods is recommended to understand spending habits.
"track your money get a Google sheet get a piece of paper get a spreadsheet doesn't matter and write down how much money you're making where you're making your money from and then below that write down all of your expenses"
Pending
It is recommended to purchase cars with cash rather than financing or leasing them.
"do not Finance or lease your car buy a car with cash"
Pending
Buying cars with cash eliminates monthly payments and frees up funds that would otherwise go towards car expenses.
"buy a car with cash that we don't have to worry about the payments and take the money that you no longer longer having to send into your car company"
Pending
Regardless of ownership, living in a smaller home is suggested for financial betterment.
"live smaller have a smaller home this could be whether you own a home or rent a home it really does not matter"
Pending
Real estate professionals and financial institutions generally advise allocating 28-33% of gross income to housing expenses.
"if you go to a realtor if you go to a bank they're going to give you somewhere between 28 to 33% of your gross income going to your housing payments"
Pending
To enhance wealth accumulation, housing expenses should ideally be limited to around 20% of gross income.
"if you really want to become wealthier you want this to be closer to 20%"
Pending
Purchasing multi-unit properties like duplexes, triplexes, or quadplexes is recommended over single-family homes for living.
"instead of buying a single family home to live in consider going out and buying a duplex or a tylex or a quadplex a two three or four Plex"
Pending
Living in one unit of a four-unit property allows tenants in the other units to contribute to the mortgage payments.
"if you go out and you buy a 4unit building you can live in one of the units yourself and your neighbors can pay a mortgage for you"
Pending
After residing in a property for over a year, the owner has the option to move out and rent out their former unit.
"if you live in this property for a year and a day then you have the ability to move out and then you can have somebody else live there"
Pending
The average American spends approximately 3 hours daily watching television.
"the average American is watching about 3 hours of Television AKA Netflix a day"
Pending
Reallocating nearly 3 hours of daily TV time towards learning can enhance earning potential and wealth accumulation.
"if you can convert those almost 3 hours of TV time a day to learning time"
Pending
Having less than $1,000 in savings places individuals in a financial danger zone.
"if you do not have $1,000 saved up... you are in a financial danger zone"
Pending
Saving at least $1,000 is a prerequisite for establishing financial security.
"if you do not have $1,000 saved up... you need to have your first $1,000 saved up"
Pending
The proliferation of 'Buy Now, Pay Later' services has facilitated financing for everyday items like clothing and groceries, often leading to financial hardship.
"Broke now broke later... it has become even easier for you to finance things like your clothes and even your groceries"
Pending
Avoid paying check-cashing fees by opening a bank account.
"if you are paying money to cash your checks stop doing that open up a bank account"
Pending
Late fees are characterized as payments made without receiving any additional value.
"late fees are a fee that you're paying for no purpose"
Pending
A polite approach with customer service representatives can lead to better outcomes for the customer's finances.
"Be nice because if you're aggressive and angry and upset with them they're going to be aggressive and angry and upset with you"
Pending
Individuals lacking $1,000 in their bank account should avoid dining at restaurants.
"if you do not have $1,000 in your bank account you should not be seeing the inside of a restaurant"
Pending
Those without $1,000 in savings should defer entertainment expenses until financial stability is achieved.
"if you do not have $1,000 saved up you should not be worried about entertainment right now"
Pending
To save money, it's advised to stop shopping at malls, department stores, and online retailers like Amazon.
"no more shopping that means no more going to the mall no more going to Macy's no more going to amazon.com block that website if you need to"
Pending
The '24-hour rule' is a strategy to curb impulse buying by delaying purchase decisions.
"give yourself 24 hours to decide if you really need it"
Pending
Negotiating utility and service bills by mentioning competitor pricing can result in savings of 10-30%.
"you can save 10 15 sometimes 30% on your bills but just calling up these companies and nicely telling them that their competitors charging a much lower rate"
Pending
High-yield savings accounts currently offer annual interest rates between 3% and 5%.
"highin savings accounts that are paying three four 5% a year in interest on your savings"
Pending
To expedite saving an additional $1,000, increasing income is necessary.
"If you want to accelerate your path to getting that extra $1,000 you got to get some extra money money as well"
Pending
Job holders are encouraged to seek extra hours, raises, or promotions to boost their earnings.
"If you're working a job see if you can put in some extra hours see what you got to do to get a raise see what you got to do to get a promotion"
Pending
Establishing a financial system and automating financial processes is crucial for effective money management.
"you need to create a financial system you need to automate your Finance"
Pending
The 75/15/10 plan suggests allocating 75% of income to spending, 15% to investing, and 10% to saving.
"a simple thing that you can follow is something like a 75151 plan which says that for every dollar that you earn from here on out 75 cents is the maximum that you can spend 15 cents is the minimum that you invest 10 cents is the minimum that you save"
Pending
The primary financial goal should be to quickly establish a $2,000 savings cushion.
"the very first thing you got to do is you got to give yourself a $2,000 cushion you got to save $2,000 as fast as possible"
Pending
Following the establishment of a savings cushion, aggressive repayment of high-interest debts like credit cards and payday loans is advised.
"the second thing you got to do is you got to pay down your high interest debts your credit card debts and you're pay loans as fast as possible"
Pending
Implementing a system for managing finances is essential.
"the third thing you got to do now is you need to start creating a system for your money"
Pending
It is recommended to track income and expenses using tools like spreadsheets to gain insight into spending patterns.
"track your money get a Google sheet get a piece of paper get a spreadsheet doesn't matter and write down how much money you're making where you're making your money from and then below that write down all of your expenses"
Pending