fbpx

Back to Basics and Email Responses

October 18, 2010

Money-Guy 10-18-2010

Today’s show is a bit of a reset. Every now and then, it is good to get back to Money 101. For me, “Money 101” takes me back to a high school Economics teacher who very possibly changed the course of my entire life…

Now that I run a wealth management firm, and have been helping individuals make good financial decisions for about 15 years, the advice that my economics professor gave doesn’t seem all that groundbreaking. I remember very vividly that he asked, “Which of you would like to be a millionaire?” Well, sitting there being the eternal Money-Guy that I am, I thought to myself. “Hmm… a million bucks sounds pretty good to me!” At the time, I was a crew leader working the drive-thru at Hardees just trying to scrap together enough each week for 1) a weekend date or 2) some hot new addition to my ’84 Cavalier. The method by which to accumulate $1 million dollars was simply to save $100 a month until I turned 65 years old. Really?!? Could it be that easy? Well, it was that very concept that got me interested in finances which ultimately lead to me becoming a financial advisor. It is because of his advice that I show the following chart in every 401k educational presentation that I give:

How To Accumulate $1,000,000 by Age 65

Current
Interest
Years to
Required Monthly
Age
Rate
65
Savings
1
10%
64
$14
10
55
$35
20
45
$95
30
35
$263
35
30
$442
40
25
$754
45
20
$1,317
50
15
$2,413
55
10
$4,882
60
5
$12,914
64
1
$79,583
*Compounding Monthly

It really is that easy! And the most beautiful part? It is skewed in the favor of younger individuals who very well may consider themselves “broke”. If you feel like you don’t have a ton of money that you can save for the future, that’s OK… when you’re young, you don’t NEED a ton of money!

It is because of this concept that I always follow with this next chart showing how valuable it can be if you star early:

Picture11

As you listen to the show, I share my thoughts on how and where you should begin saving. I then go on to share some listener emails that we have received over the past few weeks. I absolutely LOVE when you guys write the show and share your thoughts and opinions, even if they don’t necessarily align with ours. I share these emails and then I also give my response and explain why I either agree or disagree. Thank you all so much for sharing and I hope you will continue to do so!

Most Recent Episodes

3 WORST Types of Financial Crooks (Don’t Get Scammed!)

In the financial world, there are a lot of crooks that try to get into your pockets. From metaphorical crooks selling a bad product to literal crooks stealing your money, we'll cover the different types of financial crooks to watch out for and how you can protect...

Financial Advisors React to NFL Players Spending Their First Million!

Not many Americans will ever make over one million dollars in a year, but professional athletes regularly make that and more. In this react video, we'll see how NFL players spent their first million dollars after making it into the league. As we review their mistakes...

Everything You Need to Know About Real Estate Investing!

Over the years, we have had some great conversations about real estate investing. In this episode, we put together the ultimate guide to show you everything you need to know about real estate investing! In this episode, you'll learn: How to get started in real estate...

The Truth About The FIRE Movement! (Is FIRE Still Possible?)

Since the advent of the FIRE movement several decades ago, we have never experienced a period of higher inflation until now. With the market down over 20% and inflation at 40-year highs, is FIRE still possible in 2022? If it is, what does it take to become financially...

Top 3 Most Controversial Money Issues! (Our Hot Takes)

We have some unpopular opinions about controversial money topics. In this episode, we'll discuss our three biggest controversial hot takes, including our thoughts on nice cars, wealthy people, and real estate. You won't want to miss this one! In this episode, you'll...

Why College in America is Broken [And What You Can Do About It]

College costs in America have skyrocketed over the last few decades, as has the total student loan debt in the country. In this episode, we'll talk about why college in America is broken, what went wrong, and how you can do college the right way. In this episode,...

Why This Recession is Going to Be VERY Different!

Every recession is different, and this one is no exception: we are currently experiencing once-in-a-lifetime inflation and started the recession with historically low interest rates. Will this recession be different from any other we've experienced? How will it end...

How to Protect Your Finances During a Recession! (By Age)

The S&P 500 recently crossed over into bear market territory, and many in the financial media believe we are in a recession. Bear markets and recessions affect everyone differently, and we think there are certain things you need to focus on (or forget about) by...

Avoid These Home Buying Mistakes! (Even During a Crazy Market)

Housing prices have gone up over 30% in the last two years, and over 70% when you account for rising interest rates. However, there are some glimmers of hope in the housing market for those looking to buy. Will the market cool off anytime soon? How can you buy a house...

Financial Advisors React to OUTRAGEOUS Money Advice on TikTok!

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and Tik Tok is the new frontier. Is there good...

Financial strategies to your inbox!

Never miss a show again, get special offers and early access. Ready to build wealth and start owning your time? 

You have Successfully Subscribed!