How Much Money Do You Need to Be Free? (FIRE is Wrong)
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- čas přidán 3. 06. 2024
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In this video, we delve into the concept of financial freedom and explore various perspectives on how much money is needed to achieve it. From Kevin O'Leary to Andrew Tate, we dissect their views on building wealth, retirement goals, and living a life of abundance. Join us as we analyze different financial milestones, from $5 million to $100 million, and discuss strategies for accelerating wealth accumulation while minimizing tax burdens.
00:00 Start
00:20 Retirement and Financial Independence
1:13 Analyzing Kevin O'Leary's $5 Million Goal
5:37 Alternative Views on Financial Goals
8:22 Andrew Tate's Perspective: $20 Million for True Freedom
11:02 Exploring the Notion of "Enough" Money
13:51 Strategies for Maximizing Wealth and Minimizing Taxes
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I retired at 54 from my aluminum manufacturing company in Florida. I have a networth of $4.1M and have no need to be that serial entrepreneur because you only think that way because you're subconsciously chasing money. When you have financial freedom, all this goes away amd you literally want to take the time to smell the coffee.
No stress, no worries and not a care in the world while I type this sitting by my pool at my paid off home in Florida.
how much did you make on the waste?
Enjoy your retirement, and the aluminum-consuming world thanks you sir
You couldn't pay me to live in Florida. Coffee is bad for you and will age you. Fluoride is a waste byproduct from the aluminum industry and the ADA had to finally admit it was a neurotoxin all along. But it figures you would be happy next to your pool. I've been building wealth but not off the pain and suffering of others.
Good for you bro. Enjoy your golden years.
I'm glad you did well and happy for you. For me I would start another business not to chase money but because I need something to do that's fun I can't just sit around for long.
You can be free on very little but you must free your mind first.
can this freedom get me lobster sandwich whenever I want ?
@@michastankiewicz9966 you're such a victim
@@michastankiewicz9966 ok 👌 if that is the way you love good luck to you
@@michastankiewicz9966 Not with that attitude/mentality, no.
@@michastankiewicz9966 Yes, if you move to a coastal city where lobster is abundant, get yourself a small boat and set some traps. You can't get any freer than that.
Ever since I passed the 500k mark, I felt completely free and basically retired .. I agree with Tate that once you have the money, a lot of the stuff you thought you wanted, you don't actually want. Most gadgets end up owning you anyways, instead of you owning them.
As you age, what used to be important in the way of material items no longer matters.
My family is really the only thing that matters to me as I get older.
Even traveling has become secondary to me now. I find it a big hassle, especially when you're being treated like cattle going and in and out of the country.
I can live on $500,000. Since I am approaching 80yo, my only concern is an illness that could quickly eat up my savings.
Yep $500k per year is definitely doable!
@@RobertaKC1great point, one of the main reasons I'm looking at a second country is health care cost as I age.
You need either billions or nothing. If you learn to live with nothing you can go chill on an island in Malaysia and work as a part time scuba diving instructor for a few months a year and just chill the rest. Or you need billions that you can shove in different banks with 20 different passports.
There's a Charlie Munger quote that I have to remind myself of whenever I feel the need to take risk:
"It's foolish to risk what you need in order to gain something you don't need"
Risking and gaining can be addictive but it's important to know when to stop, to change mindset from growth to conservation.
Nice
Dunno, when you already got to the point where that advice can be applied you already can handle your finances well enough to not need advice from quotes.
Meanwhile those who truly need some guidance with their finances have nothing and will have nothing forever unless they start investing (which means taking risk).
Indeed! Thanks for sharing this quote!! 👍👍👍
@@sznikersI think he meant taking lesser risk than no risk at all.
@@sznikers plenty of rich people go broke so this is not true either
I will be retiring in 2 years at the age of 44. I will have just over £1m (sterling). I will collect around 5% yield from that and I expect to make a few percent capital appreciation also.
There is no way the average person can't live comfortably off that amount.
I won't have my own private jet or exclusive memberships to VIP clubs or stay in 5* hotels whenever I feel like it but... I couldn't care less about that stuff.
I am blessed that I have never had a desire for useless material things. If you care about those things, then you are trying to keep up with the Johnson's.
For those who have many millions, that's fantastic and I'm sure they worked hard to earn it and they should indeed enjoy it. But you really don't *need* that much to live a comfortable life.
Just put me in a place with nice weather, give me a good book to read and I will be sorted. I think the happiest people are the ones who don't care about material things.
I can't wait to retire to SE Asia. I'm fed up with British weather!
hi i'll be the same next year, can i ask how ur investing ur million for the 5% yield? thanks
Same. see you in Asia. My house if let would get 5% and short term money market with vanguard currently makes over 5%
@@paulgates4083 Stocks. I don't do bonds. I also own a fair bit of gold and some silver, which are doing well and look set to do very well in the coming years. I own good companies with little/no debt so even if there is a recession or crash, my stock companies won't go under. The stocks are mainly from the UK but I have exposure to overseas stocks also. Good luck.
@@DevineOne I contemplated renting out my house but decided against it. The UK government always use landlords as scapegoats and the laws lean more and more in favour of tenants. It's just easier to do stocks. I can do it from my computer and it's 100% in my control. Good luck.
@@IMadeOfClay I agree and most likely will do the same.
5 MILLION sounds great. Not many people will ever be able to save that amount.
You're not supposed to get there by "saving". Just get it.
can't save it. Must invest to get there
I alr got upto 3 Million KWD
I think of all the years of retirement I would have missed out on if I waited till the $5M mark…
Also, I have discovered that the money is flowing my way more easily now that I am not forcing it from trying and grinding so hard…
And I am enjoying the ride so much more…
Remember, Kevin stated it’s about the lifestyle you want or choose to live. There are a myriad of places on the planet, where you can live comfortably on $25,000 a year
Some places very comfortably
I'm living retired in the US on 30k/yr. Pretty comfortably, too. If your idea of a good retirement is trying to look like a big shot to impress people you don't know and don't care about you, good luck.
“Exactamundo!!” (The Fonz)
@@feoxorus 💯
What about health insurance?? What are you paying for health insurance in the US?in the US it's asinine what a horrible system in the US that's my concern and why I'm looking to escape the US!!!!
World Without Men new book out by Aaron Clarey flat out states single guys no kids can live on $ 22,000 annually. Used car, rent couch or garage space to live in; say heck with it all. No, seriously its a great read - veteran
Trying to get my online hustle off the ground so I can work anywhere. I'm not materialistic, I don't care about fast cars and watches, I just want some quiet place somewhere where I can work on something fulfilling, keep in shape, enjoy nature and maybe grow some food. My first hurdle is earning enough to leave my employer of 15 years.
Portugal
@@DavidPaulNewtonScott - Portugal is changing (mainland), I hear, though it can be great - depending. I mean Portuguese is kinda close to Spanish/Castilian.
Portugal has some great N Atlantic islands too!
To be honest, you can achieve 100% freedom with only 250k. I'm living proof. At 5% that's 1k USD/mth. This pays for all essentials in many countries. Of course you don't get to go on random shopping sprees or luxuries or fancy dinners, maybw occasionally, but its 100% doable. This way you can focus on making more money on YOUR TERMS.
Thank you! I feel like he is trying to literally scare us. FOR NO GOOD REASON.
I could live on 5% of 500,000 capital in many places in the world. I've then bought my time back from employment and that's valuable...start an online business and invest. Whilst I'm giving up time for a salary and paying max. tax on my time-earnings, I'm trapped. No time and working to pay for a place to live/car etc., so I can continue to work. A vicious cycle.
5% drawdown is ridiculously high, one market crash + inflationary period and you're done with so little capital. Most people will live through way more than one market crash and will be squeezed more than once by inflation. Just count through how many such disasters your grandparents lived.
I know Americans retired in Goa India who are living it up with just 3k usd per month in amazing houses, help, friends and good food and healthcare.
@@sznikers There are many in the world with real estate they put 500k into with a 5% yield.
@@sznikers There are many countries around the world who's banks offer interest on your savings accounts at 5-10%.
@@user-xg6yc8ho3wHow safe are those banks to put your money?
All depends of your lifestyle and the country you want to live. 1 million is low for countries like US because of taxes, real estate, healthcare. But there are many countries where 1 million is good retirement.
One million in India would get you a very fulfilling retirement. If you live on rent then one million you will be able to basically live an amazing life indefinitely
that's one of his main points
I have $5.5M (75% stock), plus my house (~$800K net). Retiring at the end of this year.
Congrats🥳
Congratulations! can you please tell us age number of kids and profession or average salary if you mind just for context plus comparison maybe also regional location
Any investment advice or tricks learned from your experience
Everyone here is trying to better themselves and we could use advice and perspective from someone like you
🎉 gj, did it took long ?
@@sznikers 30 years of working (W2 income), $100K/yr. first 10, then $300K/yr second 10, then $500K/yr final 10 (averages). *Major* real estate losses in 2008. But never married, no kids. Wanted to, though. I will be 56 at year end. I could keep working at $500K+/yr., but I have enough and I'd rather enjoy it than keep piling on more. *@andrej* below: my replies are getting blocked. I agree with you but I don’t have options.
@@nunuvyurbiz123 what was your job?
What he said about Malaysia is true except 1 thing, if you hate florida weather, you will also hate Malaysian weather because it's a tropical country. I'm Malaysian living in US currently who visits home once a year. Foreigners, especially Americans, can retire like a king due to the 1:4.6 exchange rate. I estimate you can literally rent a luxury condo in Kuala Lumpur for USD$600(RM2,700)/month. Malaysian food is one of the best in the world. Western food can be pricy but you can easily find it if you miss home cuisine. NC needs to clarify whether the 5M is for singles or for a family. For me, 2.5-3M is a comfortable goal to reach.
2,700RM where? Mines double that in central with top amenities
@-pg6767 - Look around. Obviously KL is a big city so older properties and location is key. Compared to US, not even close to what you get for $500.
@@richlandzee8686 yeah value here is exceptional but top level penthouse type 1 bedroom in a good location is going to run you closer to $1,200 if you’re not booking a year long
2.5-3m in US or Malaysia or anywhere?
@carmelanorth2917 -USD$1=RM$4.6M as of 2024. Typical Malaysian salary USD$15,000/year or possibly less. Prices are getting more expensive each year as well. You do the math. I was referring to the video content. Ultimately, USD$5M for singles is much easier to manage compared to a family of 4. Kids are expensive.
My number is $ 1.000.000 I don’t need fancy cars, diamond watch etc. I just want to retire and live in a beautiful place, low tax with a government that is not influenced by the WEF
Russia?
Watch ordinary things video, the WEF doesn’t have that much influence.
UN is the head of the octopus... Weff is just an arm of the octupus like EU imf who? And many many others There are HUGE amounts of ngo and our govs are paying billions into them... But UN is the one that sets the world policies and I think it's run by merica, CIA, and who knows who else...
I was looking at China as a lot of movies and sports etc... People were apologising if they offended China... China is deliberately spewing sewage into UK waterways... Eat shit?? Hmm for the Chinese who pride themselves on respect it screams F U.....plus the surveillance the censorship the getting rid of religion the men running round in dresses. Cbdc and social credit stopping bank accounts and an "allowance" to spend... Destroying culture etc... It just seems like someone who despises the west...
So who makes UN policies... No idea...
I have £550,000
Im renting so want to buy a home but am looking at investing 150k and I'm looking at flipping property and a few rentals from the proceeds of flipping..
A million isn’t nearly enough. Your healthcare will cost 70k a year, easily. You’ll run through that money in a decade. Maybe less.
You can live on $25k/year if your home is paid for & is modest enough to have low RE taxes & are content to never go anywhere. So, like you said, the amount you “need” is determined by the lifestyle you want. Even at my lower middle class income level, you have to figure that out. And as much as AT turns my stomach, he’s right, there’s only so much “stuff” you can buy.
Yes. Happy ending in Thailand Philippines Vietnam is only $50 .
Twice a week means only $400 a month.
$1000 a month on food
$600 a month on rent .
HEAVEN .
If you paid off your mortgage, no car note... you only need $558 Million! The USA ponzi con-my prints endless fiat dollars. You will need millions to live poor. Fake dollar is worthless I would rid of all the deadweight family and friends. I'm retired and work part-time for the cartels. I bring cash home of $50k per week (CASH) working 2 hrs a week as a driver. Also, add 2k /mo from social security. I can work more hours but the risk is to high. Plus, I don't need an expensive car or home. I look poor and this brings less attention. I get a massage w/ a great ending from my girlfriend after dinner at Qdoba several times a week. I don''t drink or smoke. I do sleep w/ one eye open and an ar next to me! Keep your expenses low!
@@dongshengdi773How does your bill come to $1,000 on food? You must be eating out alot
The nomad capitalist hasn't mentioned any pensions. He seems to take for granted that we all have a couple million socked away, which some, in fact, do. But he's speaking to only the 1% of the people who actually have $5 million in investments.
I'll be worth half that at retirement. I'll also receive two government pensions as well as a union pension. I will live comfortably on that.
@@OmarOsman98 $1000 , I eat out only. I'm lazy to cook . I don't know how to cook .
Although I know how to use a Magic Pot and a Rice cooker.
I remember Patrick Bet David said that $10 million would cover a lawsuit and allow you to start over if you lived in the US and had the misfortune of being sued for basic things that insurance could cover (car accident etc.).
Pretty good reason to secure yourself, your family and your money outside the US.
…altogether, one of your most outstanding video contributions Andrew.
I need about 2m, that's enough to live pretty much comfortably anywhere in the world, drawing down 4%/80,000$ with stocks/bonds.
Beware of moving goalposts, I used to believe the same thing.
@@markbernhardt6281 what changed your mind?
@@markbernhardt6281 This is what I'm afraid of. I've reached mid 6 figures but now I'm eyeing 7. It never ends. Problem with being human.
I see it slightly differently. $80,000 Pretax or tax free? Also I do not count my primary home in net worth calculation.
@@richlandzee8686 tax-free assumption. In some countries it may be stretching it a bit and this assumes being a single. But even in expensive european countries this is a lot.
for many people normal people 500k 1 mil at 10% roi per year is enough if you move out of the shit show named USA Canada Europe Australia ...so basically livingin in Mexico South America Asia Africa ...
Lmao.. No one holds you back buddy.
Exactly! Good capital allocation means going where you get the most for your buck! If you're a slave to your location then you'll never be free anyway!
You just admitted you have never lived in those countries for longer than a typical holiday. You will be up for a bad surprise, buddy.
@@tomstock9546 do You even travel or You just belive all You see in the media ...
I'm unfortunately a slave to my location..
For my current freedom number is 3 M. I am half way there . Wishing you all the best on reaching your goals
THAT'S IT... you can argue with just about any point you like, but no one can argue the opportunity cost of paying 40-50-60% of what you make to the government versus re-investing that money into whatever you are doing to build wealth. If tomorrow, the US secured its borders and began charging $100,000+ for citizenship like the Caribbean (largely tax free) countries, would there be many takers? I doubt it.
There would be tons of takers from the usual suspects. Ease of travel and a strong brand name carries weight..
5% of 2,400,000 annually is my ultimate life goal.
i see what you have done. $10,000 a month is perfect because you can live a good life nearly anywhere AND save a good amount. I would want to feel comfortable saving a few thousand every month
Bingo!
@@klum03 It's a strange way to think about, drawing from your savings so you can save some money, it's no different than not drawing it at all. But it's the mindset we are wired for most of our lives. I am in the same boat as you, I would rather save money and buy a car guilt-free after saving for it instead of fretting over a large deduction from my nest egg.
@@klum03 Its all because I have expensive hobbies 🫠
We're at that number right now and, thanks to inflation, it doesn't feel anywhere close to enough.
The Prophet Muhammed PBUH said: If the son of Adam owned a valley of Gold, he would yearn for another, for nothing fills his mouth except dirt (when you die and are put in the ground)"
Yup SubhaannahAllah True
❤❤❤❤
SubhanAllah
I earn 23k per year. Rich men have never paid me what I am worth but I escaped the totalitarian USA and violent Baltimore. I've been married for 21 years and I have a wonderful child that is homeschooled. The money will not make your dreams possible. Only through faith are your dreams possible.
Another great topic. I'd spend about 80 bucks on a party night in Bangkok and even that was too much for me. For $2500/mo you can get all you need and more.
my friend is an arizona resident , and recently he is paying 25% of his gross income for only 1 child for child support, and on top of that 28% of his income goes to pay the american federal and state tax. the system is design (in america) to keep every man poor.
To support your own child is a must don’t you think? to keep that child alive and 25% isn’t enough IMO
One reason why, as an American male with honor, I got snipped so I wouldn't be in that situation.
There is a freedom that has been alluded to- it comes through knowing oneself and what is it that is wanted from life and where that best situates. Thanks for dropping knowing
Depends on your expenses… if you live in Thailand and spend say $40k/year, you could have $500k invested in S&P500 and live off the returns
What if there is a crash?
Honestly if your home is paid off, you can absolutely live off $25k in USA. Things would be tight but it's very doable... No vacations, no splurges no luxuries though. Your biggest expense is property tax likely... Overseas this could go much further. This is before social security
Half correct. Insurance is another item that is skyrocketing. My last claim was 9 years ago for hail damage, and now it's almost to the level of my property tax. This is insane and I live in a middle income neighborhood. Forgo the coverage since your house is paid for, you say? Not for car insurance, and you'd better find out how much it costs to replace a roof after hail, tornado, hurricane damage. Pick your poison. I pray this is the peak and prices will go down from here.
If your home is paid off, sell it and use the profits to invest in bonds or stocks. Move to another country
True, but my house is paid off but is valued close to $2 million. If I travel, I have to pay for lawn care and other things, taxes, insurance, lawn care, electric and other stuff adds up to over $30k a year plus heath insurance. It’s about $44k just to wake up in the morning, not including food and other expenses, and I have zero debt. It’s insanity. I contemplated selling but am going to try short term renting and building myself a smaller house on the property.
@@johnbarr2100 At 5% interest or return, youd be getting 100k a year without working on that $2 million. If you live in a cheaper country you can live like a king and invest a lot of that money into the local market
@@johnbarr2100 Your lifestyle sounds a bit bloated, if your house is that valuable downsize or get a house where you can have tenants that give you income and live in Thailand or many other lovely countries. I honestly can't contemplate 44k just to wake up....Have you ever watched minimalists or those who do live a simple life? If it's the life you want, then fine but it doesn't sound like you are happy.
Greece is very appealing on a retirement visa, flat tax 7% for 15 years AND you can continue to work as long as the income is outside of Greece.
What's the tax rate in Greece after 15 years? How many months do you have to live in Greece for the retirement visa? (Is the retirement visa the same as the golden visa?)
@@ndboulder2210 fair question but does it matter? lol 15 years brother. You can always go somewhere else if it is a tax burden. Foreign countries are ALWAYS changing requirements so why not lock in 15 years and not try to predict the future.
They beat Americans to death and nothing happens....or maybe just black people
that is interesting, would you mind sharing a link on how to set this up in Greece? I'm an EU resident, does that matter?
$25k is good in many countries. $2k per month. In Egypt, you can get a super nice apartment for like $300 a month
Great. You can live cheap in Egypt. You can live cheap in Somalia or Pakistan too but that doesn't make them good places to live.
@@feoxorus Depends on how you define “good place to live”. Egypt is really cool, historical sites, and safer than any place in the West
Yes of course best,but boarder conflicts with ,east countries @OmarOsman98
@@user-zs3um1if2q Yeah it doesn’t really affect the daily life there. Anyhow, my point is that $25k will carry you for a year in a lot of countries. Egypt, Colombia, Ecuador, Morocco
Egypt isn't a happy place for women
Gaborone, Botswana first class services and amenities. Solid government and currency. Economy robust. One can retire there on $2mln max. The quality of life you will lead surpasses what most countries can afford. Same for Kenya.
yes, but who with 2 mill would want to live in Botswana? I'm not knocking the country, I'm sure it's lovely, but it's kinda like saying "all you need is $1 million for a great life in Papua New Guinea"
If you get 2 million at 5% ROI that's 100k a year. Assuming you have your house paid off that's around 6k a month. You're not set but that's relatively comfortable at least.
Ditch the house all u really need is shelter...one million more than enough
@searchersearcher8286 IDK man then you're subject to rent going up over time.
@@randomguy2809Property tax, insurance, cost of maintenance going up as well. Outside the US its different though.
@neonomad1939 I mean you're right, but that's still a tiny % of rental costs. My property taxes for the year are just over 2k, for a 250k house.
@@randomguy2809 then ditch the rent, there's always an option
I could do it on the 5 million plan but only because I have simple needs. The main being my wanderlust.
Thanks for the video Andy.
Where do I get 5M? I work for the government in essential local services. I make less than 80k. And I'm old. Oh well someone's got to make sure the drinking water is safe.
Thanks for this
I retired at age 59. Lifestyles dictates budget. You can live very well with piece of mind.
The 30k passive and your social security added to it is doable, maybe not the italian suit life but it will buy all the bait you want and the pier fee 🌴
No one needs an expensive suit, etc.
From $ 10 million on, you're free. In my country (Brazil) where the interest rates are 12% per year in last three years.
Those interest rates are attractive.
17% in Russia 😂
26.5% with bonds here in Zambia
yeah but inflation is proportional in all those places so it generally nets out
as the Swiss say, "it's your wallet that needs to sparkle, not your car or your home". You need good amenities and nice surroundings for a low-stess, quiet, free life. Some so-called FU money helps, too. But beyond that, $1 mill should really do in most places. (No, that does not include Switzerland...)
Retirement is cash flow and opportunity management. #1-Tip - keep your overhead low, low, low. Been retired of five years - yet to draw from investments. Pension, State sponsored annuity, Social Security, and rental income provide cash flow - with a positive cash flow of $2K a month. Stay healthy.
Thank you. Very informative. Finally by somebody who knows and honestly shows it from all perspectives..
There are plenty of places in the USA where you can live on $25,000/year. I know because I'm doing it right now. I'm only 52, and I'll have more income in the future once retirement funds become available, but I'm retired and living on $2,000/month right now. Obviously it requires having a home that is paid for and that is modest enough that it has low taxes and insurance expenses, but it can be done quite easily if you live in a low cost of living location.
now, where would that be? Illinois, or Wyoming?
Agreed. My husband and I are living off of similar income in northern Ontario Canada. (Used to be) low cost of housing and insurance made it affordable for us. We are looking to leave because it is becoming way too expensive.
My target was $1m then 2. I'd already divested myself of ALL Canada assets in the '90s (including stored winter clothes, credit cards etc). I was designated by RevCan/CRA as a 'Canada tax non resident' and charged a penalty accordingly - making it official! Thanks RevCan (but i still dislike you!!). It's important to get advice, be careful, be resolute, and meticulous. Fortunes may come and go so adapt. For me that's a life in Asia. Spend the time, study. Learn the language/culture. Make friends. I've got less today than my initial target (which i set in the '90's) bc, simply, life happens. But today I've got income, + passive income, and I bank a bunch. Life is good. Once I got outside of Canada I saw it didn't have to be that way. It was sunny and 36˚C today (in early May). And I like it hot! Good video Nomad Capitalist.Good luck everyone!
It’s totally dependent on your situation, and mid to long term goals. Please do an episode where you take into account children (young school going) and long term places to stay to create legacy.
Such a good channel. Even if I think a title topic spunds non applicable or boring I always get a nugget of knowledge that makes it worth it. Also, much like watching a video about organizing making you want to clean up and organize, videos about wealth take the concept from abstract impossibility to common sense average and attainable.
Wow, thank you!
Well said Andrew!!
Thank you
With $500,000 you can live quite comfortably on $2000 a month in a place like Argentina or Costa Rica. It's hard to set a round number and set it as the standard because your wealth number depends on what kind of lifestyle you want and where you want to live.
If you paid off your mortgage, no car note... you only need $558 Million! The USA ponzi con-my prints endless fiat dollars. You will need millions to live poor. Fake dollar is worthless I would rid of all the deadweight family and friends. I'm retired and work part-time for the cartels. I bring cash home of $50k per week (CASH) working 2 hrs a week as a driver. Also, add 2k /mo from social security. I can work more hours but the risk is to high. Plus, I don't need an expensive car or home. I look poor and this brings less attention. I get a massage w/ a great ending from my girlfriend after dinner at Qdoba several times a week. I don''t drink or smoke. I do sleep w/ one eye open and an ar next to me! Keep your expenses low!
This is mostly dependent on how much money you waste on needless spending
I think the $500k number is actually pretty good for the point he was making, which is that the number is always going to vary based on the lifestyle you want. If you're 50, in good health, and aren't interested in lots of material goods - if you own a small home in a low COL place and are content to pinch pennies and eat simply in exchange for going fishing everyday, you can probably do it on $25k/year. I don't think many of the folks subscribed to NC are looking for that, but there's nothing objectively wrong with it. It was just an extreme example of why it's hard to name a single number.
I have only $1.5M instead of 5M. Thank God I am single and live frugally.
I don't want to work until I drop dead. I wonder if I can retire soon.
you can retire immediately.
Fly to somwhere out from North America.
@@dennythedavinchi3832 Agree. I been thinking about Eastern Europe and Thailand.
I like Mexico too, but I don't speak Spanish.
Look into Thailand or Slovenia
@@dennythedavinchi3832 This is the answer. i spent 20 years traveling when I could. Due to the heavy layoff cycle of the US IT industry, that frequently meant that my one year contract died and I needed to look for another job. I realized I could do that from my motorcycle in Mexico or South America, or from a hostel in Lake Como. Took a lot of research time to find where I liked, with adequate security, culture, health, food, etc. Currently looking out through corner glass windows across vineyards to the high Andes mountains. Spending $2500 a month for two people. At least one bottle of wine a night, filet mignon, wood roasted chicken, great vegetables for nearly free.
Great video. You always inspire me to work harder so I can get the hell outta the states
I think it depends a lot on your family situation and how much you want to support them. Buying houses in multiple locations, and living in multiple places isn't that easy with kids when they are at schools. Having 5 kids $20M wouldn't go very far just setting things up with the basics with a house, car, education etc in a couple of different places and then there is the opportunity cost of that sunk capital investment in things that aren't making a cash flow return. I take more of a VC approach with my kids where they have to come up with the investment pitch and make something productive to pay for the things they want, so I won't be putting out a lot for expensive houses and cars directly, and I expect a good return on my risk capital from their ventures as well. But $20M doesn't go that far these days. The focus should be solely on investible assets and not lifestyle things. Nobody talks about what sort of lifestyle assets / things someone also has to support when they have investible assets at those levels, nor do they talk about how they got that capital in the first place. I could invest a lot more, but I like my art collection, even though I haven't figured out a way to cash flow it yet, and I have no intention of selling it, so it's not really an investment or an asset. Unless one is going to be a sports star or an actor, then business and investing is the way to create capital, climbing the corporate ladder takes way too much life time to achieve in most cases. Doing all of this in a location where you get value for the money that is taken in taxes is critical, as the compounding effect works so much against you for every dollar a Government takes.
I’d say 3-5 million. The 500k thing sure in theory is possible, would be a nice starter pack. But the idea of true freedom is not to live a marginally better life than a McDonald’s worker.
im glad you think a general mcdonalds worker earns 30k a year which is what I can pull on that kind of money at least with hardly any risk
@@James_36 well McDonald’s workers make about 20k. Which is enough to not die. I said marginally.
@@humpteedumptee8629 10k is a big difference and their general works don't make 20k here in my nation - the managers are only on 25k
It's all perspective. Some people are more "needy" and there for need more to live on. While others could feel very comfortable on far less.
VIDEO SUGGESTION: thank you for the great content as always, Andrew. Could you please do a video on how you make and keep friendships when you are doing the trifecta system? I’m curious how that works.
I retired this year on a 1 million usd dividend stock / ETF portfolio so yeah it depends what you want / like / expect. Amazing airbnbs in Bangkok cost like 800 usd per month (including pool and gym access etc). If you do a deal on ground with a real estate agent it gets cheaper.
Loving your content thank you! Not sure if i havwnt seen it but could you do some videos on what jobs /businesses a Canadian or other expat can do if they leave Canada?
Malaysia is dope ! Loved it
Thank you so much. I want to start checking places out next year. You are so knowledgeable about different countries. Thank you again
You are so welcome!
Yes the 100 million for me would be the ideal marker. That way I can pump money into new startup businesses, scale them to billions of dollars, buy a yacht and have a thriving charity. And regardless of what happens would always be secure financially. Great video.😊
Greediness is like fire 🔥 which never ends demanding more fuel, it can eat generations and countries. So more money is never enough for greedy people
Seek ye first the kingdom of God.... and everything else will be added unto you
The kingdom of God is within.😊
I really like what Kevin O. says about the purpose of the $5M. "...and your family. You can take care of a lot of people."
Darned right. You get to be 60 years old, watch a few friends die, get a cancer or heart disease diagnosis, you probably get a lot more perspective on people vs things and activities.
One of the best things in life are the memories you make. So collecting objects are not that. People and seeing places is that. I love to travel, see new things and learn new perspectives. Helping people is also fulfilling.
Good friend of mine has an amazing expat retirement life. Nice paid for apartment with mountain views, has owned every car and motorcycle an enthusiast wanted, dozens of beautiful international girlfriends. Relationship with a hottie 25 years younger. More money than he needs. And all of a sudden, metastasized Stage IV cancer. 😐 Enjoy it while we can. No one gets out alive. And your money doesn't mean much in that final hour.
you guys in these comment sections are on here fantasising your nonsense. It is embarrassing - you think people on here are likely to earn 111k a year net of taxes on assuming that starts from 20 and ands until 65 years of age? LOL this is like small business MD style wages where only below 1% of people earn.
@@James_36 Unless you accidentally replied to the wrong comment, what ought to be embarrassing is your combination of arrogance and stupidity. No one in this comment thread before your reply has mentioned being in any particular financial position. What I did comment on, and what, yes, at just shy of sixty and with active cancer in my body, I AM in a darned good position to comment on is what it means to consider the value things verses people when one’s own mortality becomes significantly more than a far-off, long-shot proposition.
My goal is to have 1.2M and a paid off home to retire at 58.
I need about 20 million honestly. To be able to invest how I want and live in different places , dress nice eat well and have different coaches for different things
You „want“ but don’t „need“ this money or lifestyle
@@ToniGromann no I need it
@@Bigmoney333 How much do you have now?
I fully agree with Laery when he says it i all about life style.
I don't need gold and diamonds and airplanes and yachts.
For me a simple place, not being bothered by the government (to0) much with food and warmth security is most important for me.
A simple small house, a simple ford in front of the door, that is all good enough.
I think in this respect, even a million could be enough. I am not the youngest person anymore so I don't feel the need for gold watches anymore either.
So it is all very personal. For myself, security is key.
If freedom is a state of mind, then zip, zilch, nada.
It's not...
Sleeping on park benches gets rough after 60
Good content. However to get to $10M which will then provide 5% return, it’s not doable for 9-5 white cooler job holders. To get to $10M you’d have to own business, invest that profit in stocks(index funds, mutual funds, bonds etc) and invest part of it in rental real estate (tax advantage, cash flow, depreciation, appreciation etc). This video was for folks who own profitable business which in return pays that 5% yearly income to live on. I don’t think anyone making below $100k blue collar job can even relate to this content. Good review though on Kevin and Tate’s strategy.
It all comes down to this you have two choices invest in a lifestyle or invest in life experiences.The people who choose life experiences 5 million dollars can last you over 25 years.A person who chooses to invest in lifestyle will run out of money a lot faster since they cannot live without certain things.For me I’ll choose life experiences instead of lifestyle.Your lifestyle will always change since things are becoming more advanced.So for me 5 million dollars for short term and for a lifetime I’ll have to say 30 million.
This was a great video.
Andrew, Terrific Video....Thank you....There are two Key factors : (1) Age and (2) Behavioral profile., that need to be considered when determining a "Dollar Figure"......Sorry, I will not be able to attend your Event in KL......Godspeed...
5 million gives at 6 percent gives in reality half, because you need to beat inflation as well, and only then you can say what you make on it, and that is 150.000 USD, or 12.500 USD a month. Its quite alot, and i would say that you don't need that much to be free. If you have made 500.000 USD, you can retire, your not rich, but you be okay. I would say 1 million will give you nice freedom. But that's only if the goverment dosen't smash your income with a wealth tax, because 1,5 percent wealth tax is destroying your life quite a bit and that's the problem Norway has.
Kevin is correct, I have a little over $1.2M in the stock market with 7.3% Roi. I only invest in dividends & a couple option trades for more capital. I use $50k to paid both mortgages 🤷🏽♂️
I never really became a materialist raised by parents who lived during the depression. At retirement I began the minimalist stage of life, giving away my stuff and thinking very critically before I purchased anything. With a lifestyle like mine, a person can live very comfortably almost anywhere on $500000 a year. In my case I do it on $250000. The trick is to live life don't show off.
No offense, but if you need to live off $500,000 per year, you're probably not a good minimalist 😂
half a mil a year and you think your a minimalist ?? the rich are soooo naive when it comes to this and no idea what most have to actually live on . i retired with 1.6 mil and am doing fine in Canada .
If you said $500,000 total and not $500,000 a year this would make sense. That's top 1% income in America in case you didn't know lol.
I'm sure he meant 50k and 25k
I think you meant to say $500k net worth. In that case, I agree. A quiet life with few posessions but much freedom -- if that's for you, then it can be done with half a mill, easy.
Thanks Andrew - one of your best videos to date by far
I think the $500k is for the single "broke" island-dwelling surfer lifestyle in some caribbean or SE-Asian island.
If God said, “I’ll give you all the gold you want, just name the amount.” How much do you ask for? If you ask for more than 100 kilos you are now immobile unless you are very strong, if you say 100 million tons, you have just put a huge target on your back, you will spend your entire life guarding your pile of gold, you have lost every bit of freedom you ever thought you had? Is that a blessing or a curse? So depending on where you live, who you are trying to impress quite a bit less might be the best option, mightn’t it? Besides what really constitutes wealth, and it isn’t necessarily money, is it? Sometimes it’s relationships, isn’t it?
I think 100M is a perfect mark for someone who really wants to enjoy everything this world has to offer and not care at all. Yet 10-20M is probably enough for any good lifestyle.
I think with 10 to 20 you can be free knowing you are on your way to 100
@@heteshjoosery8542 that is the idea
Completely unnecessary.
You die at your desk with a million or two, grinding and wasting your days.
I've seen so many colleagues die before 60 from stress and poor health in IT.
😂
Retire and trade options for a 15-20% return. That and some dividend income.
For those commenting that you plan to withdraw 4% or more of your net worth per year during retirement: unless you want the size of your nest egg to depreciate versus inflation, you need to withdraw *less* than the amount that your average return rate is exceeding inflation. Back when inflation was 2% per year and stocks were returning 10%, 4% withdrawal would have been fine, but now that inflation is much higher, this is no longer a safe bet. Beating inflation by 1-2% on average is more realistic, so a withdrawal rate in this range is less likely to leave you poor later in life, especially if you retire young
I like your ideas on how to maximize the income and tax free living. Thank you
Glad to her that. Thanks for watching!
what a great goal to achieve I wish I could be among you people I love the achievement
Depends on lifestyle, taxes, inflation, and family to take care of. Always have extra to invest. Money makes money, 5 million is at the lower end if your costs are higher.
$500,000, paid off mortgage, and social security puts you ahead of most Americans.
Less than 1 out of 10,000 globally have $100 million.
Truly thought-provoking! It's fascinating how the allure of material possessions like yachts can vary greatly from person to person, even among the wealthy. I'm intrigued to explore further how psychology plays a pivotal role in navigating wealth acquisition and fulfillment. Does it simply boil down to accumulating more, or is there a deeper journey of self-discovery involved? Can't wait to uncover more insights from your perspective, especially regarding the psychological aspects of wealth attainment.
5% of $500k is $25k but you can withdraw from the principal if you need to. At 60 years of age combined with your old age pension it can easily be enough. $1 million at almost any age is enough to live off forever.
Totally agree
I have around 4.3mil usd and I'm in my early 40's... its stealth wealth all the way, nothing expensive and flashy.. I just buy some nice things for my girlfriends sometimes.. travel and don't own much.. Eat out for breakfast, lunch and dinner.. and definitely don't live in the U.S... But my dream number is 8mil.. that number generates enough a year where I feel like there would be zero worry but still be about to spend more..
$25,000 a year will Not get you a retirement visa in Malaysia. Yet this is the amount a lot of people in the West get as a pension or less. Its a prison made by the government.
I used to hate the fact that malaysia’s currency is so bad.. but since I’m earning usd now, I feel grateful to be spending money in this country, especially when everything is easy to get n much cheaper than most developed countries
How much you need is totally dependent on your burn rate. I say 50x your annual burn rate.
$2m at 6% yield would be enough for me
It depends on lifetime savings amount from income. Ie if you earn 100k a year, save 20k x 40 is the base line amount. After which, it is just risk
Love this video, was hoping for one like this. Great points Andrew makes. I ran the numbers and also found flying private across continents and oceans runs the figure up way more unnecessarily. However I guess Tate's point about flying private was to avoid random strangers if your well known or hated etc., thats also the only reason I'd do it. If stay in one continent like Europe couldnt someone with much less money just hire chauffeurs and armed cars etc.
We moved house to live near our grandson. We have a fantastic relationship with him and that's worth much more to us than spending money on frivolities that don't make you happy. As you get older you suddenly stop wanting to buy stuff you don't need and look back over your life wishing you hadn't wasted so much time and money in shopping malls! Great video thanks. I find it fascinating to hear 'how the other half live' and the obsession to accumulate money as though it is the be all and the end all. So long as you have paid off your mortgage then I think the 500k you shrugged off as being way too little to live on, that sum of money is a huge amount if you consider many people have very difficult lives and they should be proud of themselves for their achievement in reaching that figure.
You ''need'' $2-5M. Using a safe withdrawal rate of 3.5% that is $70-175K/yr pre tax. You can live off that anywhere, it provides all necessity you need. Anything more becomes nothing but additional luxury.
S&P generally returns 10% per year (in the long run) plus dividends of 1.3%, not sure why he’s referencing 5% returns. Obviously you need to factor in inflation, taxes, and fx moves depending on where you live but I’d say 5% is very conservative
On 25k yearly you'll live very decently in the Balkans. Especially the non EU countries..if you're not high maintenance that is..