How To Earn $50K A Year In Interest For Retirement

4-Yan, 2021
85 270 Ko‘rishlar soni

An “interest-only” retirement plan can fund your retirement without draining your savings, but you will need to save a lot of money to make it possible. NerdWallet crunched the numbers, and we can tell you how much you need to save every month, broken down by age, to get $50,000 every year in an “interest-only” retirement. Check out this video to learn how much you will need, in order to make it a reality.
Retirement usually involves giving up your annual salary, but you will still need an income to survive. While Social Security will cover a part of your budget, the rest of your money will most likely need to come from your savings and investments.
The median baby boomer’s 401(k) plan has a total balance of $69,900, according to Fidelity. Assuming they withdraw 3% of their savings per year, they would be left with a total of less than $2,100 to spend.
If you want bigger drawdowns, you’ll need to save up a much larger nest egg before you retire. NerdWallet crunched the numbers, and we can tell you how much you need to save now to get $50,000 every year in retirement, without taking a bite out of your principal.
First, some ground rules. The numbers assume you will retire at 65 and have no money in savings now. For investing, we assume an annual 6% return when you are saving and a more conservative 3% rate for your “interest-only” retirement. We do not factor in inflation, taxes or any additional income you may get from Social Security.
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How To Earn $50K A Year In Interest For Retirement

  • At the moment, the assumed 6% interest rate sounds somewhat very optimistic for reasonably safe investments.

    Saibot SaibotSaibot SaibotOy oldin
  • You can make 8 percent forever on usdc crypto stable coin by simply depositing in in an insured saving account . You can make 10 percent of you stake it with a token so 5oo k usd is 50 k intrest per year

    Jeff GJeff GOy oldin
    • So video is flawed

      Jeff GJeff GOy oldin
  • I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $450,000 PROFIT within 3months he invested $500,000. I just began investing and i will really appreciate any tips or helpful guide.

    David SuitDavid SuitOy oldin
  • It's not about timing the market, It's about time in the market. The best time to start investing was 20 years ago, the next best time is today!

    Financial Self-RelianceFinancial Self-RelianceOy oldin
  • 50k a yr whn yor 65 tht will be equivalent to like 15k yr 2dys mony

    mark reynoldsmark reynoldsOy oldin
  • Retirement planning is ideally a life-long process. You can start at any time, but it works best if you factor it into your financial planning from the beginning. That's the best way to ensure a safe, secure-and fun-retirement.

    Linda SpenglerLinda SpenglerOy oldin
    • ​@Fateh Maalik He is available on Whatsapp+1 4 1 5 5 3 4 0 0 1 1 Michael O'Connor

      Linda SpenglerLinda SpenglerOy oldin
    • @Fateh Maalik I started up trading with Michael O'Connor with the inception of the lockdown in my country due to the covid-19 pandemic across the world and its been a profitable venture for me trading with him.

      Linda SpenglerLinda SpenglerOy oldin
    • @Linda Spengler What if you don't know how to trade any of these? I mean, I see your point. Some people have the money and are willing to invest. But the problem is where to?

      Fateh MaalikFateh MaalikOy oldin
    • @Adams Hooper Those embarking on adult life may not have a lot of money free to invest, but they do have time to let investments mature, which is a critical and valuable piece of retirement savings. This is because of the principle of compound interest.

      Linda SpenglerLinda SpenglerOy oldin
    • @Linda Spengler My problems trading. Being emotional, closing the trade after just seconds of opening it, not analyzing the chart before entering the trade, not calculating my risk to reward ratio, ignoring patterns, taking a trade that isn’t worth the squeeze and not having an account size needed to make the profit I’m after

      Adams HooperAdams HooperOy oldin
  • No

    k yk yOy oldin
  • Nice breakdown. If I could change the past, I would have started investing right when I turned 18... Staring at 18 (instead of 25), if you invested 837/month, you'd end up with almost an extra million dollars by 65 using your assumptions (~$2.6M).

    Bobby HilzenBobby HilzenOy oldin
    • You might die by having cancer at age 45. You dont know what your future holds. You cant control what happens in the next 20 years. The laws might change. Who would have thought America is in decline 20 years ago?

      Maeu DaouMaeu DaouOy oldin
  • Thank you for always sharing about financial Prospect

    Autumn WindAutumn WindOy oldin
  • Despite the financial crisis this is still a good time to invest in crypto as the market is favourable

    Micheal RezealMicheal RezealOy oldin
    • Are you there

      Lawonda koerberLawonda koerberOy oldin
    • Hello

      Lawonda koerberLawonda koerberOy oldin
    • Do you know how much is ok for a start, let me know if i can do this

      Lawonda koerberLawonda koerberOy oldin
    • Its expensive to be poor

      tev cotev coOy oldin
    • s never late dear you've got to see people remain poor due to ignorance

      Macwell PetersonMacwell PetersonOy oldin
  • This analysis is useless because it doesn’t take into account inflation.

    Peter SramkaPeter SramkaOy oldin
  • nice video

    Unai EtxeberriaUnai EtxeberriaOy oldin
    • +1 (7 2 4 ) 6 1 7 - 2 0 6 1

      Chris SainChris SainOy oldin
  • Taking my ex wife's advice of investing in the online trade market was the best thing to come out of our marriage, I've been recording some massive payouts investing in it, investing has got me working lesser shift and has given me enough time to become a better father. Making a comfortable $19000-$22000 a month investing with Mr Hovik Morte. I feel great

    Faheem BashirFaheem BashirOy oldin
    • One issue I have with traders especially newbies is them trying to execute strategies and tactics of years of constant practice on their first couple of trades, Trading the stock market is like football if you don't have a prior experience or a solid coach or in this case an expert to guide you, you'll lose the match before it begins.... Notice even the best among them Cristiano Ronaldo still trains under the guidance of a coach.... An expert is always advised.

      Raheem Abdul-MalikRaheem Abdul-MalikOy oldin
    • I don't manage my investments myself...I let my broker Mr Hovik Morte handle all the analysis and calculations... I just sit, learn and earn. Because trading for the first couple of times as a newbie can be soo complicated but securing the help of an expert can help improve your learning and earning chances.

      Faheem BashirFaheem BashirOy oldin
    • Wow those numbers a mouth watering...How do you make close to that amount trading when I've been struggling not to wreck my capital.... The knowledge I gather from tutorial videos aren't helping a lot, how can I get into this?

      Akins LikesAkins LikesOy oldin
  • My plan. I save 15k per year. Retirement will be GG

    ImVeryBradImVeryBradOy oldin
    • i have personally recommend 2 people to mr james and not a single complaint

      Ivan on TechIvan on TechOy oldin
    • Does he reply emails promptly?

      Nicholas KingstonNicholas KingstonOy oldin
    • There are a lot traders out there selling ads about their services but mr james's' good works speak for him.

      Michael ReeceMichael ReeceOy oldin
    • More positive feedbacks of mr james's works, I'm really excited.

      your favyour favOy oldin
    • Thanks to james elton I can finally afford a home for my wife and kids.

      Jamie MellorJamie MellorOy oldin
  • That compound interest is real . I made 10k in 2 months 😳.

    K PK POy oldin
  • Inflation will make it worth nothing.

    Jonathan BrottoJonathan BrottoOy oldin
    • Its sort of accounted for in the low return rate

      J SebbyJ SebbyOy oldin
  • We don’t factor in inflation. Next video.

    A DA DOy oldin
    • Its sort of accounted for in the low return rate

      J SebbyJ SebbyOy oldin
  • Great, now what are we going to save with🤔 We don’t get a UBI and we barely got $600. Millions of us are out of work, some who were still recovering from 2008, others got denied unemployment for no reason and before the pandemic, you needed to be 6 figure in debt to get a 5 figure job💯 I’m asking for myself and a friend?

    Bodhi ActiveBodhi ActiveOy oldin
  • Start maxing 401k and Roth IRA at 25 and you’re set.

    0neofthem0neofthemOy oldin
  • I've made as much as $50K in one day in passive income last year and looking to make more this year. Guess I'm doing pretty good then!

    123abc123abcOy oldin
  • I'm willing to bet you can do a lot better than this video investing $500 every month in 5 different small cap stocks.

    Blue SkyBlue SkyOy oldin
  • Interest from savings? Are they talking about investments or a savings account? The interest rate on a CD is right now about .3%. Not 3%!

    crystal leecrystal leeOy oldin
    • +1 (7 2 4 ) 6 1 7 - 2 0 6 1

      Chris SainChris SainOy oldin
    • Sorry for the late reply text my assistant for assistance on how to invest and safe your money

      Chris SainChris SainOy oldin
  • Don’t u think the buying power of 1.7 million and an annual return of 50,000 will be so little in say 30 years, it will maybe be just enough to live

    ABHI MABHI MOy oldin
    • If you consider that the average rate of return for the stock market is 10% and they only used 6% - that more than covers the difference from inflation

      J SebbyJ SebbyOy oldin
  • I like that returns on my returns

    you know with Marty Kauffmanyou know with Marty KauffmanOy oldin
  • 50k a year in 2060 is gonna be equal to like 25k a year today lol

    Deeken WheelerDeeken WheelerOy oldin
    • Inflation is most likely accounted for in the low return rate

      J SebbyJ SebbyOy oldin
  • What happens when you die by before 65?

    Seb J.R.Seb J.R.Oy oldin
  • I went from stressing over divorce to becoming a successful investor in the marketplace. I have been a passive trader since 5 years ago till now, owning 3 homes and receiving about $60k monthly dividends. I would say that the greatest determinant of your destiny lies in how you react to things and not in the things themselves... great video!

    Alexis MilesAlexis MilesOy oldin
  • The money in the thumbnail is so old. I don't think I've ever seen that many old bills together

    Warnock & Ossoff WON!!!Warnock & Ossoff WON!!!Oy oldin
  • 6% is nothing. Everyone should get 10-15%

    Bell ManBell ManOy oldin
  • Why not consider inflation in the calculation?? That's very important to consider

    lette A.lette A.Oy oldin
    • Because if someone isn't so knowledgable about inflation they'll think 50k years from now looks appealing and they'll probably join Acorn with FOMO. Marketing!(:

      Sedik MohammedSedik MohammedOy oldin
  • These videos both make me feel good and terrified about my retirement strategy. I'm maxing my 401(k) and IRA every year, and we have savings obviously. I think I'll have enough, but it's still stressful.

    Anthony CraigAnthony CraigOy oldin
  • I thought it states $500k

    ant Namant NamOy oldin
    • Thank you for your comments kindly reach out to my broker for assistance on how to trade

      Chris SainChris SainOy oldin
    • +1 (7 2 4 ) 6 1 7 - 2 0 6 1

      Chris SainChris SainOy oldin
  • This video is too simplistic. Ignoring inflation and taxes is not an option in the real world.

    Paul MielcarzPaul MielcarzOy oldin
  • Retire at 65 ? 😂😂😂

    Miguel YanezMiguel YanezOy oldin
    • @Miguel Yanez Thank you for the reply!

      SteppawolfSteppawolfOy oldin
    • @Steppawolf im 24 and I dont want to work until im 65

      Miguel YanezMiguel YanezOy oldin
    • How old are you if you don't mind me asking?

      SteppawolfSteppawolfOy oldin
  • Who wants a $50k a year life style when you’re 65? Learn how to grow your income by starting a business and investing in stocks or real estate if you want to live a 1% life and make millions when you’re young even if it takes you 10 years.

    Luke PancoeLuke PancoeOy oldin
    • $50,000 a year can afford you a good life if you are smart with money and paid off your mortgage/other debts/etc before you retired. Not everyone wants a 1% lifestyle. It's really not necessary for most.

      SteppawolfSteppawolfOy oldin
  • CNBC forgot to mention the 2 other options: 1) marry rich and 2) win the lottery.

    johndownstairsjohndownstairsOy oldin

    GorevetGorevetOy oldin
  • When I saw this, I’m like “Graham Stephan we need your reaction to this!”

    iScreamiScreamOy oldin
  • This is why I invest in dividend stocks. My dividends should exceed my SSI by the time I retire.

    L RoblesL RoblesOy oldin
    • @Blu Cow just buy a high yield dividend etf, it does the work for you. Buying individual stocks is a fools errand. They can cut their dividend or their stock price can tank. Diversification will prevent that from happening.

      poodudeelitepoodudeeliteOy oldin
    • any tips? I'm currently looking at Apple..

      Blu CowBlu CowOy oldin
  • Yes, but what happens when the market crashes????? Dollar collapses????

    Star GazerStar GazerOy oldin
    • I've gone through several crashes. They never last more than 6 months to a year. Nobody saving for retirement needs their money that soon. Most people do poorly in the stock market because they panic sell at the wrong time and then leave their money out of the market as it climbs back up to new highs. Perfect example, last year S&P 500 started out around 3400, tanked to 2300, and then climbed all the way up to 3800 in a span of a year. You'd be up around 15% by doing nothing.

      poodudeelitepoodudeeliteOy oldin
  • The point is clear, but besides age at which you start saving, the interest rate also has a huge impact on the outcome. That’s so obvious yet so often (annoyingly) ignored in these kind of videos.

    Rishi AchaibersingRishi AchaibersingOy oldin
    • Nobody can predict future returns of the stock market, so they usually use inflation adjusted averages which is 6-7% historically over the last 100+ years.

      poodudeelitepoodudeeliteOy oldin
  • It's like the old Steve Martin joke; "How to be a millionaire and never pay taxes! First....get a million dollars....."

    GogrickGogrickOy oldin
  • Oh my god. I love this animation video.🤩

    Jade Choi - Million Dollar ChallengeJade Choi - Million Dollar ChallengeOy oldin
  • Interest ? 6% ? Someone may realize 6% returns on average but it will not come from "interest".

    Thomas BoughnouThomas BoughnouOy oldin
  • With the average inflation rate of 2.5% factored into this equation, you would need a whopping $2,584,600 at retirement. That is if you are 30 years old today in order to live off of $50k a year at 65. Therefore, you would need to invest: $1,815 monthly starting on your 30th birthday.

    kim pkim pOy oldin
    • And average return rate for the S&P 500 is 10% though - not 6. So they do kind of count for inflation

      J SebbyJ SebbyOy oldin
  • Assumption: Savings rates will be higher than they have ever been since 1995, when the 5 year CD averaged around 6% Get bent, Nerdwallet. This is so outrageous.

    matt bmatt bOy oldin
  • Can someone explain where and how you get an

    Hayat AHayat AOy oldin
  • I'm so pleased I've finally taken control of my pension in my 30's :) Compound interest is incredible!

    CreatingBalanceCreatingBalanceOy oldin
  • Why don't these videos ever account for inflation. They are over assuming how much you save in compound interest by not factoring in inflation, which puts a huge dent in your return on investments.

    Mehul KMehul KOy oldin
    • They kind of do. They only estimate a 6% return. The S&P has a historical return of 10%. Subtract 2% for inflation and that gives 8%. So its still a conservative estimate

      J SebbyJ SebbyOy oldin
  • Where is the 6% coming from? I have to pit all my savings into the stock market?

    Builds by AlexisBuilds by AlexisOy oldin
    • Yes - essentially 6% is a conservative number derived from the average return from the SP500 year after year. When adjusting for inflation, you can expect a 7% return from the SP500 on average. This is strictly by just putting all your savings into one stock and is basically passive investing or autopilot investing as you won't have to do anything but be 'guaranteed' a return. Of course, there are people who invest more actively and can easily achieve higher than the average. For example, I grew my portfolio by 30% in 2020, though the stock market in 2020 was an exception due to Covid-19. That's the power of investing!

      struggling artiststruggling artistOy oldin
  • This is absolute BS unless you explain where and how the average person can get 6% interest from a savings account. LMAO pardon me while I laugh some more! LOL!!!! If any UZworldr could report on a 3% savings account, they'd break UZworld. So please, CNBC geniuses enlighten us on this magic. I'll wait.

    Dylan DarkeDylan DarkeOy oldin
    • They're not talking about investing in your savings account. Oops

      Sedik MohammedSedik MohammedOy oldin
    • I often see 6-8% used for planning long term investments into stocks or mutual funds. This video seems to be talking about growth and dividends of funds rather than interest. If you'd like info on checking or savings accounts with 3+% interest I'd recommend you check out credit unions or online banks. Some interest rates have fallen during covid, but there are places where you can earn decent interest up to a certain dollar amount. I have couple and due to the limits the interest isn't really going to set me up for retirement, but it's still free money that I can put away for a rainy day.

      NoChocoNoLifeNoChocoNoLifeOy oldin
  • Not accounting for inflation is a huge miss here. For example, if we look at historical inflation over the last 40 years, a person making $16k a year in 1980 had the same buying power as a person making $50k today. This is more than 3x the loss of buying power. This means that if you currently live on a $50k salary, and want to maintain that level of lifestyle, you’d need to earn upwards of $156k per year in 2060 when you retire to remain at the same level. Otherwise it would be like trying to live off $16k a year today. Definitely possible but a far cry away from a $50k lifestyle.

    One day at a timeOne day at a timeOy oldin
    • @One day at a time Actually, If you save the amount specified in the video, you will have the same BUYING POWER of 50K a year, today. That is what @J Sebby is saying. If they estimated a 9-10% return, your pot would be bigger, however, the BUYING POWER of that pot would be roughly the same as the 6% calculation without inflation. Hope this helps.

      Maximilion123Maximilion12329 kun oldin
    • That’s because it makes acorns look bad to adjust for inflation

      k yk yOy oldin
    • @One day at a time i mean your point was clearly that the video was garbage because it didn't account for inflation. I was just pointing out that it kind of did.

      J SebbyJ SebbyOy oldin
    • @J Sebby or it allows you to retire earlier. Neither is the point I was initially trying to make about how budgeting for a $50k lifestyle 40 years from now is bonkers

      One day at a timeOne day at a timeOy oldin
    • @One day at a time but you do realize that a larger pot gives you a higher total interest payment at retirement right?

      J SebbyJ SebbyOy oldin
  • Invest now so that it won't matter later, instead of investing later as if "it doesn't matter now"

    Ryan SpaldingRyan SpaldingOy oldin
  • Inflation gonna make 50k seem like trash

    CharlesCharlesOy oldin
    • @Randyrozzay what a joke, inflation for the big ticket items like house, health-care, education is way more than 2

      CharlesCharlesOy oldin
    • $1,000,000 was acceptable for boomers in their 65-70a now. A 1$ today will be worth .45-50$ cents in 30-40 yrs and 15$. -.25 cents in 70 years. Unlike some people I’m not budgeting to live off SS and don’t expect to die at 78.5 yrs old.

      RandyrozzayRandyrozzayOy oldin
    • @Steppawolf the fed is keeping a projected baseline of 2% inflation per year.

      RandyrozzayRandyrozzayOy oldin
    • ​@Randyrozzay Are you being serious about this? If yes, do you have any links to any articles or literature supporting this projection?

      SteppawolfSteppawolfOy oldin
    • $3millon is the new 1million mark for people retiring in 30 years

      RandyrozzayRandyrozzayOy oldin
  • That was the video? Who was in charge of the content

    Cienna NicholeCienna NicholeOy oldin
    • @Indomie 😂

      Saurabh KutwalSaurabh KutwalOy oldin
    • joe

      IndomieIndomieOy oldin
    • god?

      Wayne LeongWayne LeongOy oldin
  • "Social security" 😂 *Laughs in millennial

    Isaac Annan JrIsaac Annan JrOy oldin
    • 😂💀

      flclub54flclub5423 soat oldin
    • cries in zoomer😭

      John SamuelJohn SamuelOy oldin
  • May be simple math but I'm more concerned about considering inflation in the next 40 _60 years. I'm thinking if even getting 50k a month in interest alone will be enough?? My personal preference would rather be investing that money in Quality stocks such as ones on S&P500 and diversify my investments to yield atleast the market rate of return (around 8%). If doing so, I'd prefer a tax free account.

    Jodh TurkaJodh TurkaOy oldin
    • yeah if you got 30 years too go you need to budget for withdrawing $10k per month. which is $5,500 today. And you can bump that up to 10% S&P has dont 12% over they last 30 yrs

      RandyrozzayRandyrozzayOy oldin
  • If only I had a time machine. And money even when I was in my 20s and 30s.

    AlexiaAlexiaOy oldin
    • How old are you now if you don't mind me asking?

      SteppawolfSteppawolfOy oldin
  • It’s wild to see how much of an impact compounding interest has on your finances! If this doesn’t encourage you to save money then I don’t know what will.

    Jonathan Sorunke - Personal Finance and InvestingJonathan Sorunke - Personal Finance and InvestingOy oldin
  • Great I need to save $2k a month lol

    Top Shot BoyTop Shot BoyOy oldin
    • @matt b If you're investing in something that's only returning you 0.05% annually you're in the negatives man... You're not even beating inflation by half! Stocks, precious mentals, crypto and more!

      Sedik MohammedSedik MohammedOy oldin
    • @matt b You clearly don't understand investing if you're saving your money in the bank, lol.

      struggling artiststruggling artistOy oldin
    • @matt b the S&P 500 has a historical rate of 10%

      J SebbyJ SebbyOy oldin
    • Plus you'll need a return of at least 6%. Last I checked, best you could do was 0.5%. zero point five percent. Let that sink in.

      matt bmatt bOy oldin
  • I’m 34 and have 0 savings

    Top Shot BoyTop Shot BoyOy oldin
    • @Steppawolf well you see it depends where you live!! for example in the US there are many options such as 401ks 403bs and IRA’s but where i live in Ireland there are less options and many don’t have options where your employer could put in an amount as well! hope this helps!

      Mike ConnollyMike ConnollyOy oldin
    • @Mike Connolly Sorry if this is an obvious question but I'm pretty new to learning about money for real...When you say that you should put your money in an investment account, what kind of accounts are you talking about? Just stocks and bonds or is there some other kind of investment account I can put my money in that will guarantee these 8-10% returns you speak of?

      SteppawolfSteppawolfOy oldin
    • @Mike Connolly youre not accounting for inflation which is the wrong way to set up for retirement . $40k in 30 yrs is only worth 22k. At a minimum for 40K$ a year in retirement you should be saving $15000/yr for 30 years or 2.7$million

      RandyrozzayRandyrozzayOy oldin
    • That’s ok!! To retire on an amount of around 35-40,000 per year, you would need to start saving around 600-650 a month into a retirement plan! With this, when you retire you can leave the amount you gathered up in the investment account and can live on the interest accumulated annually of 8-10% (conservative) of the total investment amount! I hope this makes sense and you can do this!!

      Mike ConnollyMike ConnollyOy oldin
  • Interest rates can work for you or work against you. Learn the difference and you can master your finances! Great short form video!

    This is YamsThis is YamsOy oldin
    • Do you have any links to videos or articles about this?

      SteppawolfSteppawolfOy oldin
  • What 25yo has $800+/mo available to save?

    Drew ConwayDrew ConwayOy oldin
    • Maybe I'm just naïve but before this whole global health crisis happened did people in their 20s really think $800 a month was impossible to save every month? It doesn't seem like that big of an amount to me as long as you have a roommate/rent a cheap apartment/live at home/etc. But again, maybe I'm just naïve. I'm definitely not in my 20s anymore...

      SteppawolfSteppawolfOy oldin
    • lol, then you prob have spending prob or find another job that could make you more money.

    • People who live below their means

      FatBurritoxxL XxLFatBurritoxxL XxLOy oldin
  • Can we get a link to that calculator?

    ShamimMShamimMOy oldin
  • What if you have 1.5 million laying around, Can you get 50k a year off interest alone?

    HHOy oldin
    • @Drew Conway how about 1M?

      HHOy oldin
    • Easily. Buy an ETF like SPYD or HDV. You’ll make >$50k on your $1.5MM investment.

      Drew ConwayDrew ConwayOy oldin
    • Definitely.

      simpleThInkerrsimpleThInkerrOy oldin
  • Very simple compounding lesson. $50,000 in 2061 will not be what it seems today. It would be more helpful if you would do an example with inflation, and assume a liner career trajectory (ages 20-65, 20% promotion every 10 years, 3% salary increase other years, and just start at $40k or something reasonable). Same with that $1M video from a week ago w/ a lifetime fixed salary of $50k....I get these need to be simple to digest. But these are very simple. The more important video would be: "How To Earn the equivalent of $50K in todays dollars A Year In Interest For Retirement" I love this channel. Including millennial money. Thanks for bringing transparency to our situations.

    Randy MRandy MOy oldin
    • Here, here! All the best to you.

      Randy MRandy MOy oldin
    • @Randy M yeah very true. It’s very easy to theoretically say “oh if they would have just saved x amount of dollars there wouldn’t be these problems of old ppl in poverty” but a lot of things happen where they have no choice but to cash it out (illness for ex). I wish they would have a real person talk about their trials and tribulations and fluctuations in income...

      Roma PattersonRoma PattersonOy oldin
    • ​@Roma Patterson Do people generally pick a $ amount and stick to that for 40 years? I understand that's what they used for the example, but I don't think that reflects most "linear career up the ladder" situations. Each year my 401(k) contribution is increased 1% automatically, my salary continues to rise, so that $ amount changes. In responding to you, I've realized I think what I'm getting at is I wish they had a series like millennial money, but it actually followed real people's nest egg over their career. Such as: Elliot, 65, Engineer worked 1976-2021 Ann, 42, Insurance Agent, currently working Juan, 26, Hotel Manager, currently working And they just show what they actually have contributed each year, what the growth is, where they are now... and then for the people still working, project where they could be at retirement. That can take those periods of unemployment or times where "life happened" into account. Real visual examples. You know what I mean? That's what I like so much about millennial money. There's actually depth to the examples people can relate to. Not these basic infographics.

      Randy MRandy MOy oldin
    • Also the linear career trajectory doesn’t matter mathematically bc they did a dollar amount and not a percentage of income.

      Roma PattersonRoma PattersonOy oldin
    • Yeah. I feel like its so hard to project these things bc people also will take huge gaps in working (especially if they have kids) or unexpected unemployment. It seems like no one addresses that everything work-wise is very unpredictable so its silly to do these 40 year calculations.

      Roma PattersonRoma PattersonOy oldin
  • If you have saved 1.5mil by 65. Why dont you just spend 100k/year to live frivolously after retired?

    blipblop92blipblop92Oy oldin
    • @johndownstairs Exactly this, unless you live in Canada with great health care and social benefits, 1.5 million won't get you far. And once you blow it, good luck getting it back at that age. Life expectancy is going up these days - you never know how old you'll live and need the funds to keep you going.

      struggling artiststruggling artistOy oldin
    • because no one has a crystal ball on what medical expenses you might have or emergencies and life expectantcy is around 86-87 years of age, so you need your savings and investment to at least carry you through that age unless you have alot of wonderful offspring willing to take you in and not get tired of you.

      johndownstairsjohndownstairsOy oldin
    • Right! I wouldn't mind touching the principal at that age. You could definitely spend more than $50,000 per year at 65 with $1.5 mil saved. Travel the world, go on cruises, etc

      anubistigeranubistigerOy oldin
  • Problem is ppl dont have enough money to spend let alone to save

    blipblop92blipblop92Oy oldin
    • Try canceling Netflix. Then gogive Dave Ramsey a visit :)

      Nicholas StadlerNicholas StadlerOy oldin
    • Minimum wage people don’t. Anybody making over $18 an hour can save a tiny amount each month

      Evan DutilEvan DutilOy oldin
  • Call me cautious. I think having more money in your retirement is much needed. Like the video mentioned, there can be other factors or incidents that pop up that changes the calculation.

    Days with DayVidsDays with DayVidsOy oldin
  • 30:27 Anyone want to do this with me😍💋 💝💖♥️❤️

    Eugene ShamarEugene ShamarOy oldin
  • Awesome 😍💋 💝💖♥️❤️

    yley Ward Greyley Ward GreOy oldin
  • One rule that I find helpful is the 4% withdrawal rule. Understanding your monthly expenses (likely be higher because you have more free time and increased healthcare costs) at retirement you can back into to your target retirement number. Also have to factor in inflation. Happy 2021 everyone!

    Personal Finance With SidPersonal Finance With SidOy oldin
  • I see your assumption being 6% now and 3% after retirement. So this is all based on 6% interest on your savings which is the current rate but who knows what the economy is going to be in 40years? So wouldn't it be to wise to assume that economy is going to tank and we should instead save higher?

    v1d300v1d300Oy oldin
    • @RYAN HOANG When you say since the inception of the market, you're talking about when the stock market was originally established back in the 18th century (I believe), correct?

      SteppawolfSteppawolfOy oldin
    • The market has returned over 8% adjusted for inflation since the inception which has been through war world II, dot com, 9/11, covid-19, just to name a few. So 6% is pretty conservative.

  • Between housing costs, student loans, car costs, etc, what kind of 25 y/o has $837 leftover money every month for retirement alone?

    Adedayo OlogundeAdedayo OlogundeOy oldin
    • @poodudeelite Great advice!

      SteppawolfSteppawolfOy oldin
    • @GoodKnightRob Thank you!

      SteppawolfSteppawolfOy oldin
    • It all starts with smart choices that few learn at that age, but the ones that do have a huge head start in life. These include not taking on huge student loan debt unless your career field is in demand and would allow you to rapidly pay off the debt, driving a used car, living with parents through and after college while saving for a house down payment or paying off student loans. Paying off all high interest credit card debt, consolidating/refinancing high interest student loans. When you have a good paying career or business, buy a house and don't rent. Rent free rooms out so they pay your mortgage, use any free money to invest in stocks or real estate rentals. Don't have kids young and not until married. If you marry, make sure your partner has the same money habits as you to avoid issues down the road.

      poodudeelitepoodudeeliteOy oldin
    • Steppawolf I Studied software engineering. I work as a software developer at the moment. I’m doing this because It’s something I’m good at and it pays well enough to build my assets. Entrepreneurship is a passion, but I don’t plan to go all in until I have the right partners.

      GoodKnightRobGoodKnightRobOy oldin
    • @GoodKnightRob What did you study in college if you don't mind me asking and what's your job title now? I'm thinking you might be some sort of entrepreneur?

      SteppawolfSteppawolfOy oldin
  • I clicked so fast on this but now I’m just depressed.

    Sunset RiderSunset RiderOy oldin
    • How old are you if you don't mind me asking?

      SteppawolfSteppawolfOy oldin
    • Same

      AlexiaAlexiaOy oldin
    • You and me both

      KWR 28KWR 28Oy oldin
    • I haven’t pressed play yet, but why are you depressed?

      O LoveO LoveOy oldin
  • Only a minority of people live until 64. The vast majority of people die before.

    ألف وميةألف وميةOy oldin
    • If anyone actually found that video informative then they really have more complex problems to tackle, like completing 2nd grade math. Come on people, use common sence and stop living beyond your means.

      MD AppraisalMD AppraisalOy oldin
    • @KWR 28 Beirut, Lebanon.

      ألف وميةألف وميةOy oldin
    • Where in the world do live where majority die that young?

      KWR 28KWR 28Oy oldin
    • Not in America they don't. Or anywhere else in the first world.

      Trey HallTrey HallOy oldin
  • Very useful video!!! Simple math! 😉

    MAGRI - A Real Estate JourneyMAGRI - A Real Estate JourneyOy oldin
  • Wow, we're still on the notion that 25 year olds plan to retire at 65? Many of the younger generations have moved on to retiring at 40!

    Justin BaniwasJustin BaniwasOy oldin
    • Learn how to make better money choices and retire early or work until you die because social security does not pay enough to live on

      Miguel YanezMiguel YanezOy oldin
    • That’s an anomaly. At lot will be working well into 70s.

      Joy AustinJoy AustinOy oldin
    • 65 or 67 for SS is pretty ludicrous if you think about it. 10 years before doing anything makes you exhausted and you can hurt your self too easily. if you dont retire by 50 id say youre wasting a good chuck of life working. retiring at 40 is very possible if your money smart early on. with a little luck in the job you have

      RandyrozzayRandyrozzayOy oldin
  • For real it is very important to have different streams of lncome and a diversified portfoilo as for me I have already lnvested in Crypto which is very profltabIe and easy to gain

    Andrei WilliamAndrei WilliamOy oldin
    • + 1 7 2 0 6 2 3 2 1 0 2

      LeRoy MorrisLeRoy MorrisOy oldin
    • BTC is the best investment one can make at the recent time to accumulate more profit without after a successful trade

      Miguel FredesMiguel FredesOy oldin
    • Bltcoln is heavily manlpulated u need a reilable broker to stay on proflt without loslng

      Jessica LeoJessica LeoOy oldin
    • Me too as A beglnner that wants to start tradlng it's really confuslng I don't know where to start from

      Andrew AlfredAndrew AlfredOy oldin
    • So what is the best way to get into bltcoln I have been making my personal research for a while now and still confused

      Darryl OscarDarryl OscarOy oldin
  • How they came up with only 3% when you retire, but 6% when you're investing?

    Saul GoodmanSaul GoodmanOy oldin
    • 3% withdrawal rate is safe. You could potentially bump to 4%. That has already included inflation.

    • @Saul Goodman That's my best guess 🤷‍♀️

      Treasure ByrgeTreasure ByrgeOy oldin
    • @Treasure Byrge that’s not what they said. And bonds don’t pay 3% interest.

      Saul GoodmanSaul GoodmanOy oldin
    • @Saul Goodman As people get older, many of them will move their investments from stocks to something safer like bonds. That is why they lowered the return on interest after retiring.

      Treasure ByrgeTreasure ByrgeOy oldin
    • @Fofita17 they did not say withdrawal. They said it will earn 3% interest.

      Saul GoodmanSaul GoodmanOy oldin
  • Where are you going to find the nonexistent 6% interest savings account

    Kyle BigbyKyle BigbyOy oldin
    • In our wildest dreams

      Panagiotis BotonakisPanagiotis BotonakisOy oldin
    • Stock market kyle

      --Oy oldin
    • I don’t think they’re saying put it in a saving account. They probably mean park that money in a mutual fund or something like that. They could have made that more clear.

      DevNerdGirl ‘DevNerdGirl ‘Oy oldin
  • Good simple video. It's wise to plan to not get much from social security. I'll react and go a bit deeper on the simple math. That $50k could result in a very different amount of income hitting your pockets after taxes depending on how you allocate your money (IRAs, 401ks, brokerage accounts) :)

    Mitchell GriffithMitchell GriffithOy oldin
  • Great video shutout from our forex channel #TEAMWITHERVING #MultipleTimeFrameSystem

    TeamWithERVINGTeamWithERVINGOy oldin
  • All holy books on this planet earth forbid interest. Thus, interest is no option for someone who believes in God...

    To SeTo SeOy oldin
  • Is the $1.5MM needed to retire purely contributions or the total balance of retirement account which includes contributions and growth?

    Sam OSam OOy oldin
    • It's contributions and growth

      damatardamatarOy oldin
    • Total ending Balance

      --Oy oldin
  • "Compound interest is the 8th wonder of the world... He who understands it, earns it; he who doesn't, pays it." - *Albert Einstein* . Love the breakdown of the investment amounts for the different age groups!

    moneybeemoneybeeOy oldin
    • Love this!

      CreatingBalanceCreatingBalanceOy oldin
  • From India. Any idea ??

    Surya SureshSurya SureshOy oldin
  • Simple math and planning ensures you won’t run out of money in retirement.

    Casey Burns InvestingCasey Burns InvestingOy oldin
    • Bro I see you comment on literally every video I watch. I need to subscribe to your channel just on the strength of that alone 😂

      Chris KChris KOy oldin
    • @- He spends most of his time typing financial 'advice' on almost all the UZworld channels.

      BloodySinnerBloodySinnerOy oldin
    • Easier said than done right?

      --Oy oldin
  • 10:43 has the best 😍💋 💝💖❤️

    Edwin JovannyEdwin JovannyOy oldin
  • Reupload?

    Financial ShinaniganFinancial ShinaniganOy oldin
    • it's an ad for acorns, it's written

      MaurazioMaurazioOy oldin
    • So what.

      Saul GoodmanSaul GoodmanOy oldin