Why You Probably Won’t Retire (If You’re An American)
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- čas přidán 18. 06. 2024
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SOURCES:
• Why it’s hard for Amer...
www.blackrock.com/corporate/i...
www.federalreserve.gov/econre...
fred.stlouisfed.org/series/FE...
www.synchronybank.com/blog/me...
www.nerdwallet.com/article/in...
www.investopedia.com/articles...
fortune.com/2024/03/26/blackr...
www.cnbc.com/2024/03/26/black...
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Retirement is not the goal. Financial freedom to do what one wants is the goal.
So both
Most will never get there. At age 43 I have a net worth of $1 mil, and no debt other than mortgage. I am on track to have several million by retirement if the market stays healthy. But the only reason I am where I am is because I intentionally avoid spending money stupidly every day. There will never be a time where I can spend frivolously without consequences to my future wealth or ability to sustain myself in retirement. So financial freedom is an illusion for most other than maybe the uber-wealthy
Yeah and most people aren't even on track to not work to death
@@raiden031 I’ll be where you are since I started investing at 19
You can't retire without financial freedom.
I just retired last week at age 54, so it is possible. Retail job, started my 401k at 27.
AWESOME! Congrats!
Sorry happy for you good luck!
Congrats! Time is the greatest component of investing but sadly most people don't realize that until it's too late.
Cool. What are you going to do for the next 40 years
Wow, I should of done the same as you and started working back in 1997 when I was 10 years old.
I guess it's my fault for being an adult in 2024 🙄
Fun fact: The concept of "retirement age" (the age you're eligible for the pension) was introduced in 1935. The average life expectancy in 1935 was 62.
Also, the real reason you can't save your way to retirement (and you must invest) is inflation of the money supply. Your dollars are becoming more and more worthless over time.
Fun fact - you can find the versions retirement ages for everyone working at the temple in the Old Testament.
Maybe check your facts before pretending to have any!
@@nicrfe I'm not disputing the idea of retirement. I'm specifically talking about the legal definition of retirement age (FRA) in regards to receiving pension money from the government and I clearly stated that in my original comment.
Besides, there's technically nothing stopping anyone from retiring at any age assuming they have enough money to support it but the reality for a lot of people is that they can't retire when the Old Testament says so.
Assuming no inflation, if you only had to save for retirement and assuming you only needed enough for another 20 years, from 18 to 65 you'd need to save over 42% of your income. And that will only give you the average annual income over your lifetime. That number will go up or down based on whether you want to spend more or less in retirement. So, no, inflation is not the primary reason people rely on investment returns.
And yes, inflation makes that number more than 100%, but for many people both are equally impossible.
No, inflation of the supply isn't the only issue. Even if we used gold, inflation would still occur in a healthy economy.
This is one of the core flaws of SS, and yet Liberals want to reduce the retirement age, not lengthen it.
I’ve been ready for retirement since I was 30 😅
Personally I was born for retirement LOL
Nice!
@@AndreiJikh lol
@@AndreiJikhI couldn’t agree more !
I’m 30 now
You’ve done a better job helping people get a handle on their retirement With your CZcams channel than our government ever could.
Yes I had a pension when I started where I work back in 1997. Then my employer kicked us out of the pension and gave us 401k but I was a young guy and didn't pay much attention to what was going on. So I didn't start my 401k until I was 36 years old.. They definitely need to teach this more for the young people.
It should be mandatory like math during your high school years.
This is what I did. They ended my pension and it wrecked my retirement plans.
I just retired at 59. But in my working years I always encountered people who mistrusted retirement accounts and refused to save.
Answer : because we tax over and over the same dollar and send ridiculous amounts of money overseas.
We tax for social security then we tax social security, and tax for Medicare then we charge for Medicare when it’s your turn to use it
We pay for everything even when you are supposed to not be paying for it
we don’t have integrated healthcare yet we send money to countries with free healthcare the list goes on and on
If we started handling our own problems in the United States and kept the dollars locally we would all have a very healthy chance at a decent retirement
I think you should focus on your high interest rate debt. Before you even think about, you were 401 k. It's paying 30% to credit card. That's your best investment right there
If it's 30% then yes! Although I'd still say 100% is your first priority (401k match)
If I can’t retire I will be offing myself when it’s time
Don't worry about retirement, worry about life. You wouldn't accept either if they came overnight.
Just use social security bro. It's what all the boomer losers are doing.
I don't know whether to laugh or cry lol
Before you unalive yourself, make yourself useful. There are some bad people out there.
Live in a van down by the river, preferably on a piece of land you bought and live off the land
I believe there's also an issue with our education system. We are required to take a multitude of nonsense subjects, but there isn't a class that covers important topics like investments, retirement, and taxes. On the bright side, at least we can say a few words in German.🙄
Hey, dont forget you also learned to square dance!
It's done on purpose. America is ran by winners for winners and only bail-out winners.
You never been to the library?
i keep hearing that sentiment, but realistically it would not matter. the majority of students memorize what they need for the test and forget it all
you can lecture , attempt to educate all you want, but most wouldn't retain the info.
@@aliali-ce3yf I think exposer matters especially if it’s done consistently.
If someone will hire you over 60.
Experience is gold
@murkyturkey5238 you say that probably because you are not old. Age discrimination starts in your 50s and only gets worse from there.
It’s real, experience pays a lot and they don’t wanna pay older people forever. In a lot of industries when mass layoffs come around, it’s the older folks that are cut first
The GOP would like you to know that if you don’t work, you’re lazy and no, they don’t care if all you can get is burger flipping…
@@SteelRainz1its only ok for the Guberment to age discriminate which is ironic since they are the ones who say it is illegal
As a retiring financial planner, consistently is the key to build your portfolio. Next thing is that you make good
choices on big purchases like properties. I’ve seen people make emotional choices on big purchases and
that is really hard to fix!!! That also includes, finding a right spouse!!!
If you do these three things right, I think most people will retire comfortably in US!
Portfolio? Purchasing properties? This is completely unrealistic for the average person, you understand, no?
Just broke 150k in my 401k and IRA accounts….and I’m 31 and only made over 100k two years of my working life…its a PRIORITY issue, if you don’t prioritize saving you won’t.
Too right mate, keep up the good work!
*investing
What kind of work do you do?
Leaving out where you made 90k instead of 100. Not 20, 30, 40, 50 😒
@@yippehanakohe has discipline instead of excuses. Perhaps you should try that!
Just watched CVT Brian’s video on our economy today.
Hi Andrei, I appreciate your entertaining and intelligent presentations. You explain things very clearly and make it fun! Thank you!
I appreciate that!
*Come for the finance stay for the retirement advice*
allegedly
nOt aDViCe ReeeeUUUUUUUU
@@AndreiJikh Amazing video entertained & educated knew most of it but a good reminder can you make a video on Universal Index Life Insurance or Infinite Banking heard my mentor talk about it but have not looked into in yet…
Freedom above all!
Right? We are a Land of Freedom and Opportunities, not Land of Security and Guarantees.
Are u gonna repeatedly say Papa Powell in this episode? I wanna know if I should get my shot glasses ready.
Dang! No drinks for you today!
You are on point with this one Andrei! Good book recommendation too. My favorite finance book is A Random Walk Down Wall Street by Malkiel. It was published in the 70’s and is updated every few years-a timeless and pivotal work!
My favorite book is Your Money or Your Life by Joe Dominguez and Vicki Robin.
Great Video! Thank you for taking the time to talk about this stuff!
Nice description of the void created by the death of pensions
andrie, you know what i realized as i was watching the video, of course you are right in everything you say, but i realized that i just love watching you talk. so entertaining 🤯
Simple Path To Wealth! Can't recommend it enough - JL also has a brilliant voice for the audiobook reading
I live in NYC and I don't make the amount that the people in the video were making but I am well on my way to having more than enough money for retirement.
I did it by not trying to keep up with the joneses, maxing out the company's 401k match in large cap index fund, only use my credit card for things I that I am willing to pay the entire balance on at the end of the cycle. My only regret is that I didn't learn about roth ira until few years ago or I would have put money in there too.
The last few minutes of this video is really uplifting ive been doing this thanks 🙏
Population that is aging and declining points to all those abortions that have happened in the past 50 years in the USA and possibly other countries. Also, expenses should dictate how much you will spend in retirement. As a retiree myself, I know that it is most important to live reasonably throughout your life (spend less than you earn), be out of debt by retirement and try to maintain good health so that later years can be enjoyed using less dollars than you would use otherwise.
Andre I think you're a genius but you are missing a huge problem in this video. The real issue is people don't have extra money after expenses.
Lifestyle creep. People buy more expensive stuff the more money they make. If I can live on 40k then a person making $150k should be able to save money.
But you can control your expenses…you can choose to only buy used cars cash. You can choose to buy a smaller house or even a condo. You can choose to hang your clothes on a line instead of using a dryer you can choose to cook all your own food you can choose to buy raw food instead of prepared food from the grocery store, you can choose to work your way through college instead of taking out a loan. You can choose a Roku box over cable you can choose a used phone and a low-cost cell phone plan over new phones and fancier cell phone plans. You can choose to buy your clothing at Goodwill. That’s what people who make even below the median income choose to do to become millionaires.
@abdielneris4957 ...there are a lot of people who don't make 40k or who aren't supporting just themselves with 40 or 50k.
@jessbridges564 this is not how anyone below the median income becomes a millionaire. This is how people survive. This is normal life for many working class and lower income people, not hacks towards wealth 😂
This is the kind of stuff people do so that they can have a small emergency fund or get their car fixed finally. Millionaires 😂😂😂 if you truly think that many people aren't already doing these things and don't have money left over after expenses then you are clearly not in a position to be commenting about them.
Started my 401k in 2002 and in the last few years opened a separate Schwab Brokerage account currently focused on SCHD and SPYI. Thanks for the video!
Just the encouragement I need.
Solid video. I appreciate the consistent quality you put out
If you have a Roth or 401K, you ALSO need to set it up so the funds are allocated where you want them to go. This is another vital aspect of it that isn't taught or widely known
You're mostly half right, it's federal law that employers must set a default option for 401k's. Most are in TDF's.
@@Rzamortis Thanks for the correction
I have a friend and I asked her where her money was invested in at work, she says 401K. I asked again but what is it invested in? She didn't know what I meant.
On the contrary. Companies began to shed workers to dump pension liabilities.
Great info about the %15 contribution at the end 👍
Thanks! 👍
Due to this super inflation, our hard earned monies have shrunken terribly. Most people around the world won't be able to retire, not just Americans. Thanks to Powell's irresponsible money printing during the pandemic.😢 (Btw, I am from Asia. A lot of people are suffering financially in Asia too due to the inflation)
Are you seeing a lot more Americans trying to live where you live than in past decades?
Andre 🎉🎉🎉🎉 the universe loves you. Thank you and keep televising finances
that's too kind of you, thank you!
Love you, your videos and your enthusiasm. Thank you for doing the research and making things easy to understand. ❤
Kudos to you for making a effort to think about and fix this problem.
I suspect its a much harder problem to fix than you think. Its no slight on you, I think no human is smart enough to fix it.
I really appreciate the summary Of Financial order of operation from most important to least important 13:17
I love this guy!
There are two types of people who won’t be able to save 1X salary by 30 or 3X salary by 40. The first type is people don’t save enough because they don’t make enough or spend too much. There’s another type where people make a lot of money that maxing out 401k alone won’t be enough to get them to 1X or 3X their salary.
Thank you, Andrei. Another great video!
Your Videos are great Motivators to invest in our future. Thanks🎉
Happy to hear that!
Curious bro.
If a 401k is inside the market and it crashes, do we get the money back? Or?.. better yet is there a way to protect from market loss and also still grow?
Thank you so much for the video
No it just means you need to work longer until the market recovers.
401k is a long term investment and it will take hits. In 2008, I lost @40k in my 401k but it rebounded in less then a year when the economy recovered. So unless you withdraw it at the time of the crash, it is a paper loss. 401ks need to be aggressive when you are younger and then needs to be moved to safer investments in your 401k when getting closer to retirement. Now imagine having that SS 12+% that you pay put into your retirement fund instead of going to a government agency where your money does not accrue any interest - at all. You could easily retire a millionaire. The Government also makes it hard/impossible to have a 401k style HSA so you do not bankrupt yourself when you get older.
Our System is broken by design.
Andrei for president 🇺🇸
The jokes/random edits in this one are absolutely glorious!
Красавчик, смотрю твои видео каждый раз, respect
Those people crying about not being able to save making over 100k a year are the same ones living a "lavish" lifestyle
exactly right! Drive an old beater car, cook own meals and brew own coffee. Live modest.
That or they live in NY 🤮
Lots of people have huge rent costs and that’s typically where those jobs are.
Not always true, they probably just live in one of the three most expensive cities in the country. 100k a year in Iowa is not the same as 100k a year in New York City/Los Angeles/San Francisco. Not saying they can't cut back some, they probably could. But 100k doesn't make you rich or able to live "lavish" like it used to back in the 90s. The 100k "i've made it and can live comfortably" threshold is like 100k AFTER TAXES a year now.
@@Dgnmuseremote. In tech we live anywhere. 👩🏻💻🤗
I’ve been watching your videos since the beginning, love seeing your rise! Very inspiring and your tips and (magic) tricks have been more than helpful in building towards my retirement! Thanks and keep it up.
Awesome! Thank you!
Aussie here 🇦🇺 My wife and I manage our own superannuation (what we call our retirement plan). We do so via our regular bank. Shows in our online banking so we can regularly see growth and deposits, etc. 😁
Target date funds are just fine!! I agree -- we can't dip into retirement before we retire. You're right: people don't use their retirement once they retire -- my mom lived off of social security and RMDs ONLY. I'll be the same way. Who benefits? The Millennials -- they're gonna be rich, rich, rich!!!
Really love your content Andrei ❤
thank you!
Get a raise, put that difference in your retirement account.
Earn more, spend less - classic!
Forgot the part where the price of necessities also got a "raise" 😭
@nickstark8479 a raise at a faster rate then your raise too
Those 50cent raises 😂
Keen insights, I liked the breakdown at the end: reasonable prudent advice that is actionable! Well said and thanks for making it manageable for everyone @AndreiJikh 👌
andrei PLEASE do one more of these for the self-employed and earners.who do not have access to 401ks.
Had to click the like button after you said I’ll choose how I’ll fail with the Eagles screaming in the background 😂
Retirement planning is crucial. Did you know that in some parts of the world, you need over a million dollars to retire comfortably?
Well…avoid those areas. Simple.
Hmmm bot?
We could blame the Boomers, true, but the reality is that if eliminating pensions was a choice given today to the people (with access to the internet a lots of available data). I am certain we would still chose its elimination. Doubt it? Just hear your co-workers and how not smart they are…
Nice walk thru. When countries such as Denmark and the Netherlands started to force people to save 8-10% of their taxable income towards retirement - it worked out just fine. No panic. No one leaving their homes. People just adjusted their spending. Over the year contributions went up to 15-17%. In Denmark even students pay into mandatory retirement. Young people in the US are the most wealthy ever - in spite of popular myth - there is no reason at all that they cannot become the wealthiest in the world in retirement (currently that's Denmark btw). And as for SS - no need to worry. There will be some adjustments to the age bracket and probably spouse entitlement too - its too generous to be sustainable - much less likely to be reduced in size and will certainly not go away.
Love when you make them trick videos
Imagine this headline folks. Never being able to retire? What a miserable existence. God bless the American Dream. LMAO
It’s not even the worst country. You’ve pretty much hit the jackpot if you’re at least born there a homeless guy is better off than some people living in war or starving to death in some third world country
Remember, dreams aren't real.
You know why they call it the American dream?
You have to be asleep to believe it.
Carlin.
Making 3x's the minimum wage and still can't afford a house😂
This is why I work hard in the USA and plan to retire in Latin America.
If I’m not married by then, I’ll be playing hard in my 30’s-40’s.
As a 40 year old educator who makes 32K a year, I'll never be able to retire...
Please don't let your children become teachers. It is probably the worst financial decision I've ever made.
I don't know what you are doing to only make 32k a year when in Nebraska, many teachers are making twice, almost triple, that in small 10k population cities while still having summers off.
As a police officer, I had your same mentality... my first agency maxed out at 54k in 2019. After A LOT of things, I left for a similar size agency and even though I started at the bottom of the pay scale again, I only took a $0.20 per hour pay cut. Now there is a real chance I'll clear six figures in my lifetime... something I thought impossible before.
YOU set YOUR worth. There are definitely better paying teaching jobs out there.
Don’t teachers get good pensions?
A couple of things to keep in mind:
The tax rate in the countries with the "best" retirement is typically 45-57%.
Your 401k is taxed at withdrawal as regular income. There is no guarantee what that rate will be when you retire.
I agree that finical education is sorely lacking. I don't understand why this is not a priority for countries.
401k is not always taxed as regular income. In my case, my employers contributions will be taxed when I retire but I made sure that my contributions to max out the rest of my 401k for the year have already been taxed. So when I take out my contributions it’ll be tax free. You can also get a roth ira which everybody should.
Also nice callout to JL Collins
In addition to SS being insolvent, we'll probably be looking at triple or even quadruple the tax rate on capital gains to service this country's debt. Any retirement estimations need to be moved way up.
That would absolutely kill the US economy and at that point retirement would be basically irrelevant.
@@jg79100 buckle up, cause that's exactly where we are headed.
Not to mention it costing $1000 for a snickers.
I wish math teachers taught real maths related to life, not long lessons about academic algebra lmao
They should teach the power of compound interest along with budget class on how to invest and live within the amount you actually make.
Smart people learn to think in school.
you wouldn't have retained that info either
Yes because Finance is the most important part of math…
My sister is a personal finance teacher for a high school in Oregon.
The average age to death, is not a great number to use. It was down because of early deaths such as during childhood or birth.
Once people reached adulthood, they lived to a similar age as we do today.
I'll "retire" in a few years(at 70, hopefully) but I'll probably keep working most of the time. I don't have a problem with working, but I want to take a month or two off to travel, each year.
I would like to go back to college, as well.
None of this stuff costs a fortune, and is fairly doable, even without megabucks.
VTI and chill. It's not complicated.
I agree, but until they put Bitcoin in there, I'm going to have some allocation to that as well. Riskier to NOT have any exposure.
Exactly!
Yep 50% of my portfolio is VTI.
Sir what’s good
VT>VTI
10:31 truly the epitome of the average US citizen
Andre you're great I love your videos fantastic
@10:43 well ya. Compared to all the target date funds, my own personal picks are outperforming it.
“Less choices, but higher quality products”
That statement just declares war on the mutual fund industry, so good luck making that happen 😂
My plan helpfully lowered my choices by taking out the index fund. I actually talked to the loser who did that, and he thinks his high fee funds can beat the average. OMFG !
@@sprinkle61 😂
Yes! So happy when I see an Andre video! For retirement, just remember that fiat constantly loses value, but Bitcoin is programmed to actually grow in value. Just sayin!
Bitcoin is risky, and as much as I love it, I wouldn't put all my money into it because - I don't know what I don't know about what could happen
Definitely not a good idea to go all in on Bitcoin, but it’s not risky, it’s just volatile.
That’s not proven at all
@@tonypreston7278 well actually it is proven... Fiat has lost value consistently for decades. Bitcoin is programmed to go up in value, that cannot be changed.
@@DanielGonzales-di6tq so true, a huge difference 🍻
Good stuff, Andrei!
Hi Andrei, I was wondering if you ever made a video about taxes that you pay on your dividends. What are considered qualified dividend and/ or do we have to pay taxes them, and is it considered income even if it is reinvested back into buying more shares of a company. Hope to hear back and thank you for all the financial education
I'll have 8x by age 50 if I can keep it up. Then I will retire from the workforce and freelance very part time, few weeks per year.
75k per year, 42 years old, single child free, and living well below my means.
Incredible, good job on your progress!
Awesome ❤🤗
@@AndreiJikh thanks Andrei! I appreciate the videos.
The funniest part of the video was the laughter
The system isn't broken at all. This comes down to individuals making poor choices and bad decisions have consequences, not just in finances but life in general. If these people made better life choices then chances are they wouldn't be in these situations.
Thank you …it’s really that simple…poor people can make its all about putting the work and being responsible…that’s it …their is no magic potion this is not complicated…
Is you guys secret going to clown college?
Happy Monday everyone enjoy the fun
Havnt seen this dude for a long time
HSA should be maxed before anything else other than match.
What is the hsa max for 2024?
If you have access to a good plan, for sure!
In Australia they want you to work till you drop... This was a quote from our forma treasurer 😢
Woah!
@@AndreiJikh it was Peter Costello who said this in an interview.
Same with the US, but they just don't come out and say it.
Maan, the edit this time was so funny, love your videos
I chuckled a few times on this one, thanks lol
😲
Instead of a 401k, what if I just buy Bitcoin
So far that's worked out very well for the last 15 years. I think it will continue, but of course no one knows 🍻
This was good
Is that 1x 3x and 10x annual income before or after tax?????
Educate the young people to save early and this should be taught in High School. You can save 15% or 200 a month when you are 20 or the day you start working and when you look at it at 50 you will be amazed even baffled by how much you have. I know doctors who retired with problems. You need to understand spending and needs. The more you save younger the less you need to save in your 50's. Also make sure you invest your savings into a decent mutual fund and you should be just fine.
There is a retirement planning education crisis. If more people understood how important time is to retirement planning we’d all benefit. Schools are failing us.
Great video. Love it. Informative.
Andrei, I've been thinking about that last part of your video. Once you believe that the world is going to be a bigger place, more people. I know you are a research guy.
I'd love to see you do a video on population decline and economy one of these days. Over the past 50 years, the global fertility rate - the total number of births per woman - has roughly halved to 2.3. In most advanced economies it is already well below the replacement rate of 2.1 from financial times.
In other words, work til you die. Period. That’s all I’m hearing
Wait till the mkt crashes 😂
It's crashed before it'll crash again. What's your point?
I know your order of operations is specific to retirement - BUT, I would also urge folks to establish a rainy/emergency day fund, typically recommended to be at least 6-12 months of "mandatory" expenses. Stick it in a high yield savings account and don't touch it. A lot of banks are offering 4.35% APR or higher these days. And gives you the liquidity to easily access it if worst comes to worst.
We also need to change the way people think. The need it now, convenience way of living does not bode well for sacrifice now for wealth later ideals.
Simple solution, retire overseas. Your money goes longer
I've been noticing more and more people doing that.
Won't be an option when the dollar is devalued against other currencies. Those cheap countries have growing economies while the US and West is collapsing
Sorry Andrei, I know you wanted to say CORRUPT! Not complex. Us Corporations completely own the government!👎👎 we MuST vote money OUt of politics!!
That's ridiculous, else regulations for businesses, safety, labor, etc, would not exist.
Love the vid. Small advice is the white balance is not right on this vid for some of the shots
It must be horrible to work a job you dislike and want to quit everyday with dreams of retiring. I get paid doing what I love so the idea of retiring never even crosses my mind.