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Surprising Research: Retirees Can Spend More Money in Retirement

So today I want to talk about a
topic that doesn't get nearly enough discussion and that sets many retirees
actually should be spending more money than they're spending, or at least
they could be spending significantly more money than they're spending. I started thinking about this topic
because I had a client who has more than enough money to live incredibly
comfortably for the rest of her life. And she called wondering whether she could
spend a thousand dollars on a retreat. And at first I was kind of taken aback
because I thought you could spend a hundred times that and not blink, but
the more I began to kind of think about it, I realized I actually see this in
a lot of clients that they're afraid to spend money because they don't want
to outlast the retirement savings. And so I started doing some
digging and I ran across a really interesting article called guaranteed
income, a license to spend. And it's written by a couple of
academics who are doing research into why retirees don't spend more money. And so I thought I'd take that
articles kind of a jumping off point to discuss the problem.

And hopefully, maybe encourage
some of you that you should be spending more money, not less. That's always a fun problem to have. Hi, my name's Kevin Lum. I'm a certified financial
planner based in Los Angeles. And this channel is dedicated to helping
a million people retire without worry. So why do some retiree spend
less money than they could? In fact, in many cases they spend
significantly less money than they could. Partially the problem is financial
advisors, which I am one. But . Financial advisors for
years use Monte Carlo projections. It's this process that was
created after world war two.

And essentially it allows advisors
to give a probability number, the probability of success. It's highly likely that if you talk
to a financial advisor, you've been given the probability of success. So there's an 80% chance or a 90% chance
of your retirement plan being successful. And if it's 70%, you know, then
they begin to freak out and tell you need to save more money. The problem is, is that it's
a very imperfect solution. It does give you some idea of whether
you are on track for retirement or not, but it has a lot of challenges. And one of the challenges is the
assumption that it makes is that you'll have static spending plus inflation
for there for your entire retirement. But that's simply not the
way that people spend money.

When you research, how retirees actually
spend money, it looks more like a smile. So early in retirement, when
you're in your best shape. And you're most active, you spend
way more money and then as you age, you begin, it begins to dip. And then for some retirees, it will
spike back up at the end of retirement. With long-term care or health care
expenses, but for many retirees, it's just a constant decline. But when the Monte Carlo simulation
is created, advisors are assuming that you're going to spend the
same amount of money throughout the rest of your retirement. And in addition to that, they're going to
continue to increase it by inflation, but that's simply not how people spend money. So, let me break it
down a little bit more. One of the problems with Monte
Carlo simulations is they're binary. It's either pass or fail. So let me give you an example
of why that doesn't really work.

So we have just a very simplistic
Monte Carlo simulation here. You need a hundred dollars each year
over a 10-year period and we're going to run 10 different variables, right? So typically in a Monte Carlo
simulation, they'll run a thousand different variations. One with market goes up, one with market
goes down, we're inflation takes off or flight inflation, collapses, all
these different possible universes. And then it says, did it pat,
did you pass or did you fail? Did you reach your goal or
did you not reach your goal? And then it provides you an
average of whether what's the probability of success of your.

Plan. So for example, in this scenario,
in the first simulation, the first run-through and you're 10, you only have
$90 or eight only, you would pull out $90 of income as opposed to a hundred. Now, in reality, if that were to happen
in retirement, all you would end up doing is just pull back, maybe some of
your discretionary spending, but when the Monte Carlo simulation sees this,
it asks, is this a pass or is it a fail? It's a fail. Now in reality, you re you achieved
99% of your retirement goal. I would consider that a pass. But the computer says no it's yes or no. It's a zero or one it's binary.

It failed. And the second simulation. Year nine and year 10. You're only able to plot $80 in the
ninth year in $80 in the 10th year. Once again, you're at 96%
of your retirement goal. You could just pull back your
discretionary spending, but the computer just says, is
this a pass or is this a fail? If your advisor was to look at this,
they would say you have a 50% chance of achieving your retirement goals, but in
reality, you achieved 96% of your goal. But in a Monte Carlo
simulation it's pass fail. It's just not dynamic enough. And the problem is, is that it
scares a lot of people into being way more conservative with their
money than they really need to be. Now, some people do need to be
conservative with their money. They need to be spending less,
but many retirees could be spending more money on trips and on their grandkids and all the
things in life that they enjoy. But because an advisor is so consumed
with what's the probability of success using a very outdated model,
they end up being entirely too conservative in the retirement years. The second challenge to retirement
spending is the 4% rule.

So many advisors talk about the 4% rule. You know, you can pull out
probably 3.7 to 4% of your income. And the reason is, is because as
you age, there's the glide path. So advisors begin moving more
money of your money from equities. Into bonds. So you have more security and
retirement, but in an attempt to reduce volatility in a portfolio advisors
are reducing greatly the longterm expected return of the portfolio. And there's all kinds of
problems with the 4% rule. First of all, it's not a rule. The guy who created the rule recently
said, you could probably pull out 4.7% if you had a more diversified portfolio. And then it turns out the guy who
created it also has almost all of his money in CDs and a bank. It's very, it's very
odd, but that's not the. We can do a nother video at
some point about the 4% rule. But the problem is, is that
what you see is that people have their money in equities.

Tend to be more fearful, partially because
advisors tell them they can only pull out three and a half to 4% of their portfolio. And the other challenge is, is because
there's real volatility in the market. So even if you have a 60, 40, or 50 50
portfolio, As you've seen over the past year or two, you can end up having a
25% draw down in a very safe portfolio. So if you have a million dollars
in that portfolio and you watch $250,000 of that evaporate, Two years in your retirement, you're
going to be scared to spend money. And so one of the things that researchers
found is that people who have guaranteed income streams tend to spend significantly
more money throughout their life than people have their money in , stocks,
bonds, alternatives, whatever it might be. So the researchers did is
they took two groups of people. They both had essentially
a hundred thousand dollars. Except the one person had a guaranteed
income stream and the other one just had their money in a portfolio and they
found that the people had their money.

Coming from a guaranteed income
stream, ended up spending almost twice as much money in retirement. Not at the end of the day, they
both are probably going to end up having very similar returns. In fact, the person whose money is
in the portfolio will probably have way more money at the end of their
life, but they're more fearful to spend that money on in retirement
because there's so much uncertainty. And so people have fixed income coming
in are just willing to spend more money because they feel less anxious. In fact, one of the other
videos we made, we talked. About the regrets of retirees. And one of the regrets of
retirees was essentially not having more fixed income coming. In fact, two of the top five regrets
were not waiting until later to take social security, which would create a
higher amount of expected, fixed income from their social security payment. And the other was not having an annuity. There's really three main types of fixed
income that most retirees can have the first fixed income, the most popular,
the one that almost everyone will have is going to be social security.

When you retire, you're going to
receive some amount of money from the social security administration. If you take it at age 62, you're
going to receive a smaller amount. If you wait till age 70, you're
going to receive significantly more. And so the longer you wait to draw
on social security, the higher your income amount is going to be. The second type of guaranteed
income is a pension. So, if you have worked for a
legacy company or the government, there's a good chance that you're
going to get a percentage of your. Salary into perpetuity during retirement. So it might be 70% or for some people
up to a hundred percent of their salary. That they're going to receive
through the retirement. So they're going to
receive social security. Plus they're going to receive a pension the third type of guaranteed
income comes from an annuity.

So annuities are really controversial
topic among financial advisors. Now, I'm gonna talk about some
of the problems of annuities in a minute, but let's just talk for a
minute about how annuities work. There's really two basic types of
annuities that honestly you could, there's a hundred different rabbit holes. I can go down. So I'm simplifying this greatly,
but the first type of annuity is an immediate annuity. So you take a hundred thousand dollars. You put in an annuity and then you
get a guaranteed amount of money paid out to you for the rest of your life. The other type of annuity
is a deferred annuity. So you have to wait at least a year. Can be significantly longer before you
start receiving your annuitized payment. So you have an immediate annuity and
then you have a deferred annuity. Some people will use deferred annuities
that won't kick in until age 80, because they're most concerned about
guaranteed income later in life. Other people want
annuities to start earlier. So they'll use an immediate annuity.

So you have immediate annuities and
then you have deferred annuities. And then the other variable within
annuities is you have a single annuity or a single annuity. Where you have a joint life annuity. So a single annuity basically
covered you for your life. When you pass the nudity goes away. A joint life annuity will cover two
people through the end of their life. Sometimes there can be a
step down and benefits. You can structure it in different
ways, but essentially it is annuity for you and your spouse. And then you can also structure
the payout of the annuity. So you can have a life only
annuity that typically provides you the largest payment. But that means that if you annuitize say
a million dollars and you're going to get, you know, $50,000 a year for the
rest of your retirement, and then one year after annuitizing that money you pass.

All that million dollars goes
back to the insurance company. There are all these
other variables, right? A 10-year certain annuity. So that means that, you know, if you
annuitize a chunk of money and then you pass right away, your family will
still receive payments for 10 years. There can be a cash refund annuity. So there's all these different variables. And then you can also have a riders. For like cost of living
adjustments for inflation. And so you can play with and
mix and max annuities, but the most basic type of annuity is an
immediate payout fixed life annuity. Where you give a million dollars to the
insurance company, and then they guarantee for the rest of your life or the rest of
your life and your spouse's life, a fixed sum of money that you're going to receive
often those annuities are called a SPIA, a single premium, immediate annuity, right? You give them money to the insurance
company and then you get an immediate payment for a certain amount of
money for the rest of your life.

So let's talk a bit about
the problems of annuities. Because we, the research shows that they
can be really helpful to retirees because they can allow them to spend more money
because you're less concerned about market volatility, market fluctuation. The problem with annuities and
the reason that financial advisors are so divided over annuities
is they've been greatly abused. Anytime you have a commission
attached to a product. There's a lot of room for abuse because
pers the person selling the annuity has an incentive not to provide you with the
best annuity possible, but to provide themselves with the highest commission
possible and particularly the United States, we have what's called a variable
annuity, which pays out incredibly large commissions to the, the advisor
and opens the customer up to a lot of risks because it can be invested
in the market and just doesn't provide the protection that it's supposed to.

But there's also been a lot of
changes in the annuity market. Historically an insurance agent was paid a
commission when they sold you an annuity. So let's say they sold a million dollar
single life premium annuity to you. They might make 10% commission. And so they're going to make
a hundred thousand dollars or whatever the case might be. Now you can get no commission annuities.

And typically the no commission annuities
or no fee annuities have a much higher. Payout to the client. Now the problem is, is that the
advisors who sell these are often at fee only financial advisory firms
and they'll charge a management fee 1% AUM or whatever it is. So both sides historically have had
some ulterior motives and particularly it's problematic in the field. Only community. Because fee only financial advisors often
claim to be the ones who are working in your best interests, their fiduciaries. But they still have, if they're
working on the AUM model, they still have an ulterior motive to keep your
money invested in the market, as opposed to putting it in a new city. Now, with some of the fee only
annuities or the no fee annuities that is beginning to change a little bit, so finally, let's talk about
the practical implications.

In reality. If you leave your money in an equity,
heavy portfolio, you most likely are going to end up with a much larger chunk
of money at the end of your retirement to pass on to your friends and your
family or your favorite charity. Then you will, if you use an annuity On the other hand, if you have guaranteed
income, you're likely according to the research to spend way more money in
retirement on things that you enjoy than you are, if you have your money in the
market, because while you will probably end up with a larger chunk at the end
of your retirement, if you leave your money invested, you're always going
to have way more volatility, right? You can have times in your portfolio
can be down 20, 30, 40%, which is going to make you worry to actually
pull money out of your portfolio. Whereas if you put your money. Into an annuity, you have a fixed
income stream coming in and you know that no matter what happens,
you're going to have, you know, $10,000 a month in income coming in.

And so you feel comfortable spending that
money on things that you enjoy in life. And so part of the decision that
you need to make is like, what do you actually value and prioritize? Do you value having less
worry, having less volatility? And you're not as concerned with leaving
a chunk of money at the end of your life, then maybe you should create
some more guaranteed income through. An annuity or through maximizing social
security or through choosing a job that has a pension, if you're still working.

Right.
So you might want to lean that way. On the other hand, if you're like, I
want to leave as much money to future generations as possible, and I can
withstand the volatility, then you might want to go into a more equity, heavy
portfolio and just ride the equity wave. Now for a lot of people facing
retirement, it might not be an either or. Maybe you put some money into an
annuity that hopefully between the guaranteed income that you're going
to receive from social security, plus some of the guaranteed income you're
going to receive from your annuity. You can basically make sure that all your
fixed expenses are covered and then you can leave the rest of your money in an
equity heavy portfolio that hopefully will grow significantly over time. You can pull some of that money out
to do things you really enjoy doing. Buy a second home, take the whole family to Disneyland
or whatever the case might be. Or leave a large chunk of
money at the end of retirement. And so really it's one of these
decisions that can't be completely answered by an Excel spreadsheet.

If we're just going to look in an Excel
spreadsheet, the best thing you could do probably is just put all your money in
the market and just ride the volatility. But that also might keep
you from sleeping at night. On the other hand, if you want to
sleep at night and have guaranteed income, the best thing is probably
to put everything you have into an annuity, and you just have guaranteed
income for the rest of your life.

And you're able to spend
your heart's desire. But you have nothing to
leave for future generations. Probably neither of those
options are perfect. And so maybe finding a middle
ground of that, that blended option is best for you, whatever you do. I would highly recommend that you find
a financial advisor that's fiduciary. And honestly, it might be helpful to find
a fiduciary that has an AUM or a flat fee model, and also offers a annuities
either through no fee annuities or no commission annuities, or maybe has an
insurance license and can write annuities. And that way, if you have a fiduciary that
can also write an insurance policy, maybe there's a little bit more balanced. The other thing you could do is just
find someone that will advise you for a fixed fee, do a one-time plan and
that their money is made simply from writing the plan and not from selling
you an annuity or managing your money.

Um, lots of different options. As always, if you liked this content
and if you can ding that bell,.

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Key & Peele – Retired Military Specialist

[hinges creaking] – I WAS WONDERING WHEN
I WOULD COME IN HERE TO FIND YOU SITTING IN THAT CHAIR. – IT WASN'T EASY
TRACKING YOU DOWN, DECKER. – WASN'T SUPPOSED TO BE. – I KNOW YOU'VE RETIRED,
BUT– – THAT'S ALL BEHIND ME NOW,
GENERAL. I'M NOT THE MAN YOU KNEW
DURING THE COLD WAR. – I UNDERSTAND. WE'RE NOW FACING A THREAT UNLIKE
ANY WE'VE EVER FACED BEFORE. A MAN WITH YOUR EXPERTISE–
– I MADE A VOW. NEVER TO KILL
ANOTHER HUMAN BEING. SORRY, GENERAL, GONNA
HAVE TO FIND SOMEONE ELSE. – OH… NO, WE WEREN'T
THINKING YOU'D DO IT. WE WERE–[clears throat]
JUST HOPING YOU COULD RECOMMEND SOMEONE
FOR THE JOB. – I GUESS I COULD
COME OUT OF RETIREMENT. – NO. NO NEED.
JUST A RECOMMENDATION WILL DO. – ALL RIGHT. I'LL DO IT. – YOU KNOW, YOU'RE JUST
NOT WHAT WE'RE LOOKING FOR. – YOU SLY SON OF A BITCH. YOU ALWAYS KNEW
HOW TO PUSH MY BUTTONS. I'M IN. – NOT YOU, DECKER. – I'M SHARP AS I EVER WAS.
– [sighs] – EVEN FASTER TOO.
GRAB MY HAND.

NOPE. WAIT TILL
I COUNT TO THREE FIRST. – REALLY? – ONE. TWO. THREE. OKAY. I WANT YOU TO TRY
AND SLAP ME IN THE FACE. UNH! WASN'T READY FOR THAT. TRY AGAIN. UNH! OKAY, YOU KNOW WHAT? – NOW WHAT?
– DIDN'T HAVE MY ADRENALINE UP. 'CAUSE THIS IS NOT AN ACTUAL
HIGH-STAKES SITUATION. ALL RIGHT. DRAW YOUR WEAPON. AND…DISARMED.
[gun hammer clicks] YOU'RE GETTING PRETTY QUICK
AND DISARMED–OKAY. I DON'T NEED
TO TAKE YOUR WEAPON. YOU KNOW WHAT?
SHOOT ME. – I AM NOT
GOING TO SHOOT YOU. – WING ME IN THE SHOULDER.
– THIS IS RIDICULOUS! – TRY, GENERAL.
SEE WHAT HAPPENS. – [sighs] – DEFLECTED–OOOWW! – OKAY. I MADE
A MISTAKE COMING HERE. – WING ME IN THE OTHER SHOULDER.
– I'D RATHER NOT. – I INSIST. DEFLECTED–AAAHH! THAT WAS BECAUSE MY OTHER ARM
WAS ALREADY INJURED. – OKAY. I'M LEAVING.
– [grunting] ALL RIGHT. ALL OR NOTHING. GUT SHOT. – NO!
– GUT SHOT! COME ON! IF YOU CAN SHOOT ME IN THE GUT,
I'LL CONCEDE.

– DECKER, YOU HAVE
TWO WOUNDED ARMS. – GUT SHOT! GO! – GOT IT.
[groans] – YOU–YOU CAUGHT THE BULLET? – OH, YEAH.
[groans] – SO YOU'RE TELLING ME
THAT THE BULLET IS IN BETWEEN
YOUR HANDS RIGHT NOW. – THAT'S WHAT
I'M TELLING YOU. – [sighs] [birds chirping] – IS THAT ALL YOU GOT? COME ON. HEAD SHOT. HEAD SHOT.
I'M READY. ONE SEC THOUGH.
[gunshot].

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401k to Gold IRA Rollover Companies – Avoid These Crucial Mistakes by..

hi there thanks for taking a moment to listen to my message I've worked very hard my whole life to save for my retirement and however with the looming economic instability and inflation consistently rising I began to worry about whether my money was safe and so I did some research and I discovered that my finances were actually better secured in gold which actually increases in value during hard times unlike paper money or stocks and real estate and when i first started looking for a company to roll over my 401k funds into gold i was overwhelmed by the amount of gold dealer websites i found so i needed help to make sure that i would choose the right company and what i mean by that is that i mean a trustworthy company that has a genuine expertise in gold ira rollovers that would store my gold securely without charging any hidden fees I was recommended to the gold rush exchange by a colleague of mine as a great resource for gold ira information and i was very happy to receive a lot of clear and very comprehensive knowledge about gold ira rollovers which was broken down well enough for even a novice like myself to understand well and best of all the site contain a lot of comparison charts the top-rated gold ira companies based on customer reviews and ratings from the Better Business Bureau the business consumer Alliance and trust link and with the gold rush exchange calm I was able to make an educated decision in choosing the right company to secure the most valuable investment of my life so for those reasons i highly recommend that you visit this website before making calls to different gold ira companies you'll find the site at the gold rush exchange calm or you can just click the link below in the description

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What is a precious metals IRA

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This Is How To Become A Millionaire: Index Fund Investing for Beginners

hi guys it's mark so did you know if you save two hundred dollars per month at an eight percent annual return then in 45 years you would have over wait for it one million dollars to be honest when someone first explained this was possible by investing in index funds i hardly understood a word they were saying it was like they would speak in a different language today i thought it was about time that i made the video that i wish i'd seen when i was younger and explain everything step by step and because i like people that actually practice what they preach i'm gonna be investing ten thousand dollars of my own money during this video so you can see exactly how it's done just a quick disclaimer though i'm not a financial advisor i'm a businessman and this is just some of the real life strategies that have worked for me personally i always thought of index funds as my backup plan if my businesses hadn't been successful then i would have become a millionaire anyway through these investments just remember if you like the video then smash the like button as it really helps push this video out to more people and also consider subscribing if you want to grow your wealth part one uncovering the lies so let's cut to the chase you've been put a major disadvantage people have been telling you lies about investing all of your life for instance at school when i was growing up i remember asking my teachers about investing and they always said it's just for rich people as they can afford to hire professionals to do it for them for the longest time i believed investing wasn't for me because i wasn't a pro and i didn't have much money and i thought i wouldn't stand a chance then we got friends one of mine said i'd have to look at all the financial newspapers learn how to read the charts and according to him it just wasn't worth my time and on top of this every time i mentioned investing to my family they seemed so scared because they thought it's the most risky thing in the world and not for normal people my dad even said if i started investing i'd lose all my money can you believe that these lies are exactly what the experts want you to believe as they know that index fund investing is extremely easy to do you don't need much money to start the risks are pretty low and on average it will make you more money in the long term the dark truth is that the average actively managed fund returns two percent less a year than the market in general this means that professionals on average are doing worse than index funds and even if they end up losing you money they still charge you fees no matter what now according to my favorite film the matrix you have now taken the red pill and you've woken up to the truth it's now time to move on to part two understanding the game i know when i first started investing i felt like i was going to make so many mistakes but once you understand their language it all becomes so much easier and that's what we're going to be talking about in this part so i've been banging on about index funds in many of my videos so i think it's about time i explained what they are and why they're so cool i'm a big football fan and if you have ever followed any sports you'll be familiar with a league table like this the better your team performs the higher up they'll be on the list but on the other hand if they do really badly they might be removed from the league entirely this is almost exactly the same as an index all you have to do is switch out the teams for companies let's take the s p 500 for example this is a list of the 500 best performing public companies in the usa the big dogs being amazon google apple and more recently tesla and just like a league table if a company doesn't perform well they're at risk of being removed from the list hasta la vista baby the idea of an index fund is to be a little bit sneaky as it allows you to invest in every single company on the list with just one click it's a bit like a friend of mine who picks a different football team each year he just wants to pick the winner every time so investing in index funds means that even if a few companies do terribly then it's balanced out by the companies that are doing extremely well the average return on the s p 500 over the last 10 years has been 13.6 now that is higher than usual but get this no one has ever lost any money if they've bought and held an s p 500 index fund for more than 20 years so if this is so foolproof then why do people still buy individual stocks well personally i like to do this just for a bit of fun i also think that some companies are currently working on awesome technology for the future but aren't making a lot of money at the moment so they won't make the cut into the popular index funds so now and again i like to invest some extra money into these up and coming companies so i don't miss out and that reminds me we bought currently giving away four free individual stocks if you want to pick them up i'll leave the link in the description and for everyone that's outside of the usa or china i'll leave a link where you can claim a free stock with trade in 212.

Hey that's pretty good you'll often hear people throwing around the terms roth ira in the usa stocks and shares isa in the uk tfsa in canada and supers in australia but what does it all mean well these are types of accounts that allow you to earn profits on your investments and you don't have to pay any taxes on them but they generally have limits because they're just so powerful these are kind of like captain america shield so let me explain if captain america just sat at home with his shield then he wouldn't ever get anything done but when he takes that shield into battle he has an advantage so these accounts are like your shield make sure to use them when you're investing a way you can do this is by using the money inside your shielded account to invest into index funds and all the profits will be yours because the government won't take a cut one of my biggest questions when i first started was should i invest all my money at the same time or do it gradually now this is something lots of investors argue about so i'm going to give you my view on things remember later i'm going to be investing this 10 000 in full so that kind of gives you an idea of what i believe investing all your money as a lump sum is certainly more risky however if i'm investing in something i know will increase over time like an s p 500 index fund then there is no point waiting the longer you wait the worse off on average you'll be however if you don't have the cash i wouldn't wait to save up the money i would just invest what i could every month as sometimes you're going to buy when the stocks high other times you're going to buy when the stock's low but overall this is going to balance out and this is known as dollar cost averaging when you log on to an investing website or app you'll see that there is something called etfs which are very similar to index funds and a lot of people get them confused both allow you to invest into a basket of stocks however the easy way to remember the difference is just to think of what etf stands for exchange traded fund if we break that down simply it just means that it can be traded on the stock market throughout the day whereas an index fund can only be bought and sold for a price that is set at the end of each trading day but let's cut to the chase you probably want to know which one's better on average if you're starting with little money then etfs may be a better option as they have lower minimum investment thresholds and many brokers don't charge a trading commission now if you're still watching this and you're younger than 18 then i am really impressed that you've been listening to a boomer like me for so long but seriously not many people learn this at such a young age as they don't teach it at school a way you can start investing under 18 is to open up a custodial account in the usa or a junior stocks and shares iso in the uk set up these accounts you just need to ask your parents the real secret ingredient to this millionaire formula is time and when you're younger you have so much of it that's because every year as you keep adding to your investments the interest starts to compound and grow at a rapid pace it's a snowball effect once you reach a certain tipping point the interest you're making is much more than the amount you're investing on a monthly basis it's a bit like when you see someone take ages to get to a hundred thousand subscribers on youtube and then within a few months they managed to hit the big million the sooner you get started the better as time will be on your side now i want to clear something up when people talk about index funds you will hear s p 500 again and again people just love it as i mentioned before this is a top 500 public companies in the usa but the cool thing is you don't actually have to be in the usa to invest in this i'm in the uk and it's one of my favorite investments i just love to think that i own a small part of all the biggest companies in the usa part three mastering the strategy so lots of people will teach you what to do but they won't actually say how to do it so i'm going to walk you through everything right now while i invest my own ten thousand dollars the first thing to really do is to work out your goals let's say you want to become a millionaire that was one of my goals i just had to work out how much i would actually need to invest per month to achieve this i love using these compound interest calculators you can find them online easily yourself if you want to have a go at this so if you're able to invest 250 dollars per month with an 8 annual return over 42 years you'll have over a million dollars in your account now if you're able to invest that for another 10 years you'll have over 2 million in your account of course if you wanted to invest even more then you're just going to speed up the whole process the next thing we need to do is pick the brokerage website we're using to set up our account and invest the ones that i love are charles swab fidelity and vanguard i call these the big three the founder of vanguard john bogle is often referred to as the father of index fund investing and if you think i'm a boomer he was even older than me his vanguard group gave birth to index funds so they're the oldest and most trusted let's jump onto their website to see what they have to offer so to get onto their full list of funds just go up to invest in and click on vanguard mutual funds at this point i'm going to have to ask you to strap in and brace yourself because if you haven't seen this page before it can look extremely overwhelming but in a minute you'll be able to impress all your friends when you know exactly how to read it see what i mean there are just so many options the main things to focus on are the expense ratio which is how much they're going to charge you per year you obviously want to keep these as low as possible and luckily with vanguard fees these are very low anyway the other thing to look at is the average returns and they break these down nicely on the right hand side of the screen but of course it's always good to remember that past performance doesn't always mean future returns my wife's a bit like vanguard she likes everything in order and nothing out of place so they have arranged all of their funds into different categories so everything is easy to find category one is bonds these are a type of contract that companies and governments sell when they need extra money if you invest in these they promise to pay you back in the future these are often seen as pretty low risk but also pretty low returns therefore the older you are the more bonds you should have in your portfolio number two is balance funds the idea of these is to pick the age at which you wish to retire and they'll do all the rest of the work for you and find the right mix of index funds as you can see these go up in five year intervals and you can pick whichever suits your plans best this could be a good option if you wanted to invest without thinking about it too much but personally i always prefer manually investing it's a bit like driving an automatic car that does all the work for you it just isn't as much fun as a stick shift number three is company location and size known as small medium and large cap here you can find v fix which tracks our old friend the s p 500 this little s means it's one of vanguard selected funds which they recommend if you click on it you're able to see exactly what companies you would be investing in and also the risk level vt sacs is another good one which is a total stock market index fund which has over 3586 different stocks this allows you to invest in the entire usa stock market in one click there is a minimum investment of three thousand dollars again but as before there's also an etf version with no minimum called vti then you have international stocks quite a cool one is emerging markets which invest in companies based in china taiwan india and many more but as you can see this is a five on the risk scale so i wouldn't personally invest a lot of money into this fund because look at me i'm a bit old to be taking too many risk and i need to sleep at night number four the last category is sector based so if you have a particular interest in energy healthcare or real estate you can invest into these sectors and there are also a lot more options for sector investing in the etf so now we've broken down what's on offer hopefully it all looks a bit more understandable now for the moment you've all been waiting for it's time to invest my ten thousand dollars i could split this between lots of different funds but personally i like to invest the majority of my money into american companies i would say probably about seventy percent american 20 in other countries including the uk and ten percent in some bonds i like to keep the bonds quite low as i don't mind this little extra bit of risk because i'm only 53 and i have a bit of time before i've got to rebalance my portfolio to secure my investments but that's a personal choice depending on your risk tolerance the funds that are available are different in every country but the indexes they track are very similar so you may need to invest in a different fund to me but obviously you can still use my percentages as a guide so i'm going to use the uk vanguard site to invest 5k straight into this etf that tracks the s p 500 so here we go all done two thousand dollars is going into an index fund that tracks the total american stock market so again we go on the screen click so far that's 70 invested in the biggest economy in the world which of course is the usa now i like to balance this out by investing in a different economy as i live back in my own country i'm going to be putting 2k into the ftse 100 index fund so looking good all done great now i've invested 90 of my 10k and i'd like a bit of security let's just put the remaining 1k into a global bonds index fund and let's just do that so just like that i've invested in the usa companies like apple amazon tesla and google i own a small piece of the biggest companies in the uk like hsbc bp and unilever and i have some bonds to balance out my portfolio it really is as easy as that so i'm going to leave the next video up here but don't click on it just yet remember to subscribe to the channel if you want to grow your wealth ring that notification bell and smash that like button okay i'll see you on the other side

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401K to Gold IRA Rollover

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The Jewish Secret To Wealth | IN GOD WE TEST | Full Movie

The Jewish people have always had
a peculiar relationship with money. Their Torah recounts tales of men accumulating fortunes
of biblical proportion. When God took his people out of Egypt,
he brought them to the foot of Mount Sinai and revealed to them secrets,
one of which was the secret to wealth. Throughout the ages, the world could not help but admire the
Jewish people for their business powers. Admittedly,
in some generations the admiration turned to hatred and became an excuse
to commit unspeakable atrocities. Their greatest critics will say that they control the banks, the media
and financial markets. Is it all just a coincidence? There is no denying that this ancient
people possess a secret to the accumulation of riches
that is defying the rule of nature.

Alas! What is that great secret? In God we test I've always been fascinated with money. Even since I was a kid. I remember that I had this picture book
when I was younger that inside of it, instead of putting photos,
I would put bills. $5 bills, $10 bills. As I grew up, I would read any business
book that I could get my hands on. And I'd also listen to any positive
thinking guru that I could find. I guess you could say I've
always been a student of money. What is their secret There is a secret to wealth that the Jewish people have
known for thousands of years. It was hidden inside of the Bible and was not ready to come out until this
very last generation. You see, we're all ruled by one power, by one force, by one Creator,
and we all are subject to His laws. And when we know how to apply that to our lives, we're able to unleash wealth
that we never thought possible.

The Jewish secret to wealth is
Charity, in Hebrew called Tzedakah. Tzedakah The big, big, big key is the Tzedakah. Giving the money actually
gives us back more. Because I prioritize
giving. God prioritizes me. The key secret is my charity that I give. Tzedakah plays an intricate role in my everyday life and decisions
that I make within my life. Si quieres ganar, tienes que dar (If you want to earn, you need to give) Generous people are
more successful people.

Zohar says, open up for me a vessel like the eye of a needle, and I'll
fit an elephant through it. Forget what you think is possible Now, this goes against all logic. According to simple math. If a person has ten of something and they take one and give it away,
they're left with nine. Imagine a pie that you have
in front of you, okay? Someone gives you a beautiful apple pie that you love, but that's the amount
of money that you've earned during the year that you worked hard for,
that you sweated with.

You've got receivables and payables
and staff and finding clients. We're sweating for our money,
and that money is that pie. The idea of giving away one or two slices away Hashem has ways to give you
back those two slices and more. What we're talking about here
does not go according to nature. We are talking about a secret code that the Creator of the universe himself
embedded into the fabric of the universe. We're not talking about karma, that if
you do good, you're going to get good. No! We're talking about
a hack in the matrix. When God sees that a Jew is generous with charity, He is generous with him. Instead of four times, he receives five times the amount – and many times more.

Along with the abundance of good which he receives from above, he is also blessed with the success of using it for only good things, amidst health and joy, for purposes of Torah and Judaism, with joy and gladness. When I came home from yeshiva,
I went back to work. The Rabbi from my synagogue came, and he asked for a pledge
for the following year. He asked me for $18,000,
which is roughly $1,500 a month. And that's what I owed
at that time for charity. So I gladly said yes. By the end of the year,
I fulfilled the pledge, but again, didn't think too much about it.

That next
year I left my family business, and I went to go start my own
company from absolutely scratch. Right before Rosh Hashana, the Rabbi came to my new office
to pledge me, as he does every year. And when he walked into the room,
his face turned white. He was used to seeing me in a big fancy office with a big mahogany
desk with a big corner view. And that year he walked in and I was alone in a dingy office sitting on a $10 Walmart
chair and those white folding tables. That year I was expecting
the Rabbi to go easy on me. He sits down at the table and he says
to me: "This year I'm not going to ask you for 18,000, but this year
I'll ask you double $36,000." I went into a trance. The Rabbi froze in front of me.

It was just me, myself and God. And at first I was angry. I was saying to myself,
how could he do this to me? He knows that I'm starting fresh. He knows how hard it is. How could he ask such a big ask? But then I thought to myself, if this is all true, then God is
not going to hurt me for giving charity. When it comes to giving charity, there should be no calculations. Don't rely on what you think is possible, and even on your own good heartedness. The Torah calls it "the generosity of your hand," given immediately, without limitation. I came out of the trance. One single tear ran down my cheek,
and I said one word. Okay… I said it's up to God. It's not my problem. I'm going to do my best
and I'm going to commit. But at the end of the day,
it's up to Him to make sure it happens. My father-in-law, the Rebbe, said that when a Jew commits to give an amount which seems totally unfeasible from a financial perspective, God opens a new conduit for him to help him fulfill his good resolution amid joy and gladness – which means that he is given several times more, in order to be able to give that amount happily.

That year in business,
I absolutely exploded. It was an incredible year,
from zero to hero overnight. The type of growth that I
had was not normal. And by the end of that year, I was able to fulfill every single
dollar of that $36,000 pledge. It was hidden So I started to go on a search to find where exactly the source for this concept
of giving charity makes a person wealthy. So I came across the standard line in Torah that everybody knows,
which in Hebrew is called asher tis'asher. Asher tis'asher. which means that when a person gives charity, he becomes wealthy. Ties to become wealthy. So I continued to learn and study more, and I came across the magic phrase I'm
about to tell you that changed my life forever and is about
to change your life forever.

And the secret hidden line is
found in a book called Malachi. And it goes like this: Ubechanuni Na Bazos. Ubechanuni Na Bazos God says with regard to charity, "Test Me with this." Even though, in general, we are not permitted to "test" God, the exception, as cited in the Code of jewish law, in the section Yoreh De'ah, in the beginning of Laws of Charity, is with regards to charity. Not only are we permitted to test Him, but God actually challenges us, "Test me". The next year, when the rabbi came and asked for $50,000,
I gladly obliged, of course. And the year after that,
they asked for $100,000. Now, that was really pushing myself.
I said yes.

What was I going to do, say no? Would you believe that
it worked again?
It was all starting to make sense. I tested God, and he opened up new channels,
new ways for me to make a living. And I had made more in that year when I gave $100,000 than I had
ever made in my life. And I also had enough left over. By then I was so convinced when it came to charity that there's no difference for me
between taking a ball and dropping it and letting it fall by gravity and giving
charity and getting money back in return.

There's no difference. There are others As I started documenting and talking more about my experience with charity,
all of a sudden, from all around the world,
people would reach out to me, telling me about their stories,
their miracles that they themselves saw. So the first time that we gave charity in a way that I would describe as making
us slightly uncomfortable was, Eda and I went to a class at Chabad
of Ohio State University.

They were hosting
Rabbi Yossi Jacobson YY. We were super inspired. He spoke about a number of things, one of the things being giving
and the importance of giving. We walked up to Rabbi Jacobson. We said, Rabbi, your message is fantastic. It's powerful, and it needs
to be heard by the world. Why don't you start a website, an online
yeshiva, and we will underwrite it. And I had no idea what the financial
commitment would look like. The dollar amount was tens of thousands of
dollars to start it, build it, fund it. I was extremely uncomfortable. Eda was uncomfortable. But we felt like this is really important. Hundreds of thousands of people could potentially be learning
and growing as a result of this. And we did it. Every year we would give more, and we were "testing" Hashem every year,
we would see clearly those results.

When you give,
you give for fun and for free, with no expectation of getting
anything in return. And what you get after almost
becomes just like the cherry on top. With covid, everyone was cash tied. I was especially cash tied. I was coming out of Sabbatical in Israel
where I had very little income, and I decided to put a donation and it was
well above my means at the time. And less than a year later, I closed probably the biggest cash
deal of my life and blew my mind. The fact that God had
reimbursed me not only with the fund amount, but also that he rewarded me, so to speak,
with ten X was phenomenal to me. I had a friend came up to me, told me,
Alberto, are you giving…How much are you giving? Do something, calculate 20%. And I'm like: Are you crazy? How can I give 20%? Just do it. You know If you want to continue to be a guy
who pay your bills and is doing okay.

Okay. But if you want to go strong, it's a 20%. After that day, I like what he said,
and I separated 20%. I cannot explain how that opened up
the possibilities of businesses. I did find myself at a point where I had gotten into divorce, and now I was
running a home as a single parent. It became a struggle to give as
freely as I did in the past. Even if it was kind of a challenge, I always benefited on the flip side,
so I would get a tax refund that year, or I would have the opportunity
to work at another job.

So I always found that even in giving,
God will ultimately reward you. It was our first Shabbat,
or maybe second Shabbat in the community. And we're at Kiddush and I meet this guy and I'm talking to him,
and we're having some drinks, and Rabbi Corn comes over and he's pouring
whiskey for everyone, and he says, Yaakov, make sure that this guy gives
good donations this year. And I laughed it off. What am I going to do? So I decided to joke. Whatever you give, I'll match.

I had no clue how much he had given. So it turns out that he had
committed $18,000 for the year. That was five times more than
any donation I had ever given. What am I going to say? I just hoped and prayed that I'll
be able to give it, and I meant it. Somehow, with God's incredible blessing,
I was able to give that much and more the year after, I gave at least
five times that amount. The thing I realized at that time that still sticks with me is we're just
a vessel for creating wealth and serving as a channel for God to get it
into the hands of those who need it.

People often ask me,
what's your secret to success? So yes, I do a ton of networking. I work really hard but the key
ingredient is my charity that I give. I really feel that has
enabled me to scale. And things that don't even make
sense have been working out. Like it's beyond comprehension. I've been in many businesses,
everything from shoes, textiles. Our last business has been
the most successful one.

We made sure that everything that came in,
we were going to give 10% Tzedakah. And I believe that it's been successful
because of us taking so seriously giving Charity. My story with charity
begins a few months ago. I was at the grave site of the
Rabbi M'Ribnitz in Monsey, New York. I had a big project that I was
working months and months to get it. And I didn't see a path to getting
a signature on my contract. And I told for the Rabbi that if I'm going to get it, I will donate my charity
from this project for his schools.

Five to six days later and this is already after months of back and forth,
I got in my inbox a signed contract. It was signed on my terms and everything
started rolling from there. This was like a very
special moment for me. Just five, six days after promising Charity, all of a sudden,
boom, the contract was signed. A close friend of mine reached out to me
and he's like, I have a friend of mine. He lives across the country.
He has no money. His parents have no money,
no one has any money. He needs help. So I was like, sure, whatever he needs,
I'll take care of it. And I supported him for the entire year. And it came to a point at the end of the
year, I wanted to go back to Israel. I needed that money to get there. I was short I was short $5,000. I went to a friend of mine, I'm like,
hey, this is the situation. Within three days, I had 5000 plus plenty of extra to get me
through the entire year. And it was just so clear to me that that
was literally me giving to someone else.

God gave right back to me. Our minds are so small, and it's only
us that limit the capacity of Hashem. And once we do that, Hashem says,
okay, Ad Kan, I'm going to stop here. But in your mind, if you say no, Hashem is bigger, He's greater,
it's endless, then Hashem says, okay. You'll see. Is it enough There's a man in my synagogue
that every year gives $10,000.

And I asked him if he could stand up
in front of the congregation and speak to everybody and talk about the blessings
that he sees from his charity. But he told me, Berel, I can't because I
don't see any blessings from my charity. And this really bothered me because I'm
the guy that pledges him every year. So how could it be that he doesn't see it? And I went home and I thought about it
and I did the math and the reason why he's not seeing the blessings from his charity
is because he's not giving enough. He only gives $10,000, which means that God only has to give him
$40,000 that is left for him to keep. The Source of life, God. So God is assuring us that if we give a fifth of our earnings to provide for those whom He must sustain, then He will multiply it four times, and it "shall be yours".

This is written in holy books. So if he gave $20,000,
then God would give him $100,000. If he gave $40,000,
then God would give him $200,000. You see, the problem with Charity and the way we've been looking
at it forever is this: most people look at Charity
going backwards. They say to themselves, if I made $100,000
this year, then I owe $10,000 to Charity. The problem is, if a person makes $100,000
after tuition, after rent, after food, after insurance, and after a vacation,
he has no money left.

He might even be in debt. He doesn't even have $10,000
left over to give to Charity. So he's not even doing that bare minimum. Here came the Lubavitcher Rebbe and changed everything and flipped it
completely on its head. Instead of looking backwards at what you made to determine what you owe to Charity,
he challenged us to look forward and make a pledge and decide how much money we
want to make for the upcoming year. And based on how much our pledge is,
that's how much we're going to make. "God attaches a good thought to action." When a Jew decides to do something positive, even if it seems beyond his means, and even if it is truly beyond his means – nontheless, because he resolved, despite his limitations, to do a favor for another Jew, although the other is wealthy, he resolves to do the favor with self-sacrifice, we are assured that God will help him honor his pledge.

I tested God And I won After learning all this last year when I went to go make my pledge for Charity,
I wanted to really test God with Charity. At the end of the day, a lot of people think that it says you can
test God, but really, if you read it properly, it says, test me
with Charity as if it's a commandment. It's a Mitzvah to test God with Charity. is with regards to Charity. but God actually challenges us, "Test me!" So this year, instead of going up by 18,000
or 36,000, I decided to really test God and see if this thing is
true once and for all. I pledge a quarter of a million dollars. And what do you think happened? True to His word, a new business was formed : my executive
coaching firm that not only paid off the quarter million dollar pledge,
but left me thank you, God. With plenty left over that I was able
to do it with joy and with happiness.

Just goes to show, when you test God in Charity, you're going
to see incredible miracles in your life. Your turn I now want to give you the exact method
that you could start applying this in your life exactly where you are
right now, right here. Step one, you make a pledge to institutions that the
foundation is based on God. Now, disclaimer the pledge that you make
should not be irresponsible, and it should be within the world
of reality, but from the same time, the pledge should be something that pushes
you beyond what you're comfortable giving. Step two is you write a document to the institutions that you're pledging
to, telling them the exact amount of money that you're going to be
pledging for the next year.

And then step three is, every single month you send a check
out to those organizations. My personal favorite is writing postdated checks and giving them
at the beginning of the year. So I take myself out of it. And what you are about to do is testing God with the greatest Mitzvah
that there is, which is Charity. And it says that nothing brings the Messiah, the Mashiach,
closer than giving Charity.

Once you test God and once you see
the blessings explode in your life, you will never be able to go
back to a regular life again. And when you do see those blessings,
make sure to tell everybody that you know about this incredible Mitzvah
of testing God with Charity. In God we test Subtitles : HIVI Productions (en.hivi.fr) Translator : Liora Dvash.

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Retire Wealthy Home

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2024 Canadian Retirement Income Guide

WELL, A TRADITIONAL PENSION IS BECOMING HARDER TO COME BY THESE DAYS. SO BUILDING A STEADY RETIREMENT INCOME IS KEY FOR ANY FINANCIAL PLAN. CANADIANS HAVE MORE THAN ONE OPTION WHEN IT COMES TO WHERE THEY SHOULD BUILD THAT RETIREMENT INCOME FOR THE FUTURE OR ACCESS ADDITIONAL RETIREMENT FUNDS FOR TODAY'S YOUR MONEY MONTH SEGMENT, WE'RE JOINED BY TED WORKSHOP AND HE'S PRESIDENT AND CEO OF TRI DELTA PRIVATE WEALTH ATTEND. THANKS SO MUCH FOR COMING IN. IT'S GREAT TO BE HERE. THANK SO THIS IS THIS IS A GREAT TOPIC TO TO DIG INTO FOR REALLY ANYONE OF ANY AGE BECAUSE THEY MIGHT BE THINKING ABOUT THIS REALLY EARLY OR THEY MIGHT BE NEARING RETIREMENT AND THINKING, OKAY, MAYBE THERE'S SOME OTHER OPTIONS FOR ME HERE OF OF FUNDS THAT I COULD ACCESS ARE WAYS THAT I COULD MANAGE MY BEST IN IN RETIREMENT. >> SO MAYBE WE SHOULD START, THOUGH, JUST WHERE YOU KNOW, WHERE PEOPLE SHOULD GET STARTED WHEN THEY'RE THINKING ABOUT THEIR RETIREMENT YEARS AND EVEN JUST THE BUDGET, HOW THEY SHOULD BE LOOKING AT WHAT THEY NEED IN RETIREMENT. WELL, I ALWAYS SAY IT, IT STARTS WITH 2 THINGS.

ONE IS. >> YOU WERE WORKING AND YOU HAD A PAYCHEQUE AND THEN YOU EITHER ARE OR MIGHT IN THE FUTURE. STAFF WORKING IN THE PAYCHEQUES GOT. OKAY, HOW DO I REPLACE THAT? PAYCHEQUE? SO THE NEXT THING IS HOW MUCH TO SPEND AND SPENDING SOMETIMES CHANGES IN RETIREMENT. THERE'S EXPENSES THAT DISAPPEAR AND IN SOME CASES, ESPECIALLY IN EARLY RETIREMENT, SOMETIMES AS MORE TRAVEL AND SOME OTHER EXPENSES. SO YOU SORT OF SAY WE START WITH HOW MUCH TO SPEND AND THEN YOU GO, HOW DO YOU BUILD THAT PAYCHEQUE FROM VARIOUS SOURCES AND HOW DO YOU DO IT? MOST TAX EFFICIENT. >> YEAH, OKAY, SO LET'S GO THROUGH SOME OF TOP SOURCES ARE TOP WAYS THAT YOU EITHER, YOU KNOW, BUILD YOUR RETIREMENT INCOME IN VARIOUS DIFFERENT FUNDS OR OR BE LOOKING TOWARD.

THE VERY BASIC FOUNDATION OF THINGS AND THAT THE CANADA PENSION PLAN, IS ONE ASPECT THAT PEOPLE SHOULD BE CONSIDERING. YEAH. AND SO EVERYONE HAS ALWAYS A LITTLE BIT OF TRICKING US TO IT. YEAH. SO CANADA PENSION PLAN, MOST PEOPLE QUALIFY. >> BUT THE QUESTION IS, DO TAKE IT. 62, TAKE IT 65 TO TAKE 70, WHAT WHAT MAKES THE MOST SENSE FOR SO ONE OF THE THINGS IN DIED WE TALK ABOUT THAT MAY ALSO HAVE A LINK TO A CPP CALCULATOR THAT HELPS YOU DETERMINE WHEN YOU SHOULD TAKE. OKAY. AND ARE THERE ARE THERE THAT WOULD SORT OF SWAY YOU ONE WAY OR THE OTHER? >> WELL, THE BIGGEST ONE IS HEALTH. >> AND IF YOU'RE GOING TO LIVE TILL 90, YOU MIGHT AS WELL WAIT TILL 70 IDEALLY TO TAKE CPP IF YOU'RE NOT IN GOOD HEALTH, YOU WANT TO TAKE AS SOON AS YOU TURN.

60. >> THE OLD AGE SECURITY IS ANOTHER ONE THAT APP PEOPLE TURNED TO BETS FOR MORE. IS IT FOR MORE OF A LOWER INCOME IN YOUR RETIREMENT YEARS? NOT SO BASICALLY UP TO ABOUT 86,000 OF INCOME. YOU GET FULL OLD AGE SECURITY AND THEN UP TO I THINK IT'S ABOUT 145,000. IT GETS SORT OF SLOWLY DECLINES TO 0, BUT IF YOU HAPPEN TO BE IN A RELATIONSHIP AND HAVE A PARTNER AND YOU CAN SPLIT INCOME, YOU CAN, YOU CAN HAVE $170,000 OF INCOME SPLIT EQUALLY AND STILL GET FULL OLD-AGE SECURITY. SOME MOST CANADIANS WILL QUALIFY AND SO HOW MUCH WOULD SOMEBODY BE LOOKING AT IF YOU KNOW, ADDING TOGETHER, CPP AND OAS? WELL, MAXIMUM, YOU TAKING IT 65, YOU COULD HAVE 48,000 A YEAR COMING IN BETWEEN A COUPLE, A LOT OF AGAIN, ALL OF THESE THINGS WE HAVE A U.S.

CALCULATOR AT WEBSITE AT RIDOUT, THE .CA AND ALSO TALKS ABOUT IT THE GUIDE. >> THERE'S ALSO, OF COURSE, AS YOU KNOW, FUNDS THAT YOU MIGHT BE SAVING IN YOURSELF. RECIPES ARE, ARE A BIG ONE WHEN YOU'RE TALKING ABOUT RETIREMENT PLANNING, BUT THEN THERE'S ALSO R I F BUT TO WHICH YOU HAVE TO CONSIDER WHEN YOU'RE WHEN YOU'RE GETTING TO THOSE RETIREMENT YEARS. SO THE KEY THERE IS. >> IF YOU'RE MAKING A HIGH INCOME, I THINK YOU WANT TO PUT MONEY INTO RRSPS AND GET THE TAX REDUCTION.

THE ISSUE IS WHEN YOU TAKE IT OUT, SOMETIMES IT MAKES SENSE TO TAKE RSP MONEY OUT. LET'S SAY YOU'RE TIRED. 60, TAKE OUR SPEED MONEY OUT FOR THE NEXT 10 YEARS AND DEFER TAKING YOUR CPP AND OAS. SO THERE'S A FEW MOVING PARTS. YOU WANT TO THINK ABOUT, BUT YOU'RE SORT OF LOOKING GOING. IT'S ALMOST LIKE MAKING A MAKING A BIG MEAL, RIGHT? WHERE YOU TAKE FROM WHAT DO YOU DO FIRST, WHAT DO YOU DO SECOND? AND SOME OF THEM HAVE BIG IMPACTS ON ON THE TAX BILL HE YEAH, THAT'S I MEAN, THAT'S EVEN JUST AN TIP THERE THAT IF YOU ARE TAKING THAT OUT OF THOSE FIRST YEARS AND THEN YOU COULD DELAY YOUR YOUR CPP A BED PEOPLE MIGHT HAVE OTHER INVESTMENT THAT NON-REGISTERED AND INVESTMENT ACCOUNTS.

WHAT WOULD YOU THINKING OR WHAT SHOULD PEOPLE BE THINKING ABOUT WHEN IT COMES AGAIN, YOU CAN SOMETIMES SOMETIMES I SAY TO PEOPLE. >> LET'S TAKE SOME MONEY OUT OF YOUR NON-REGISTERED ACCOUNT AND SOME MONEY OUT OF YOUR RRSP OR ACCOUNT TO TO BUILD YOUR RETIREMENT PAY CHECK BECAUSE IT WILL KEEP YOUR INCOME LOWER. >> YOU PAY TAX, EVERY DOLLAR COMES OUT OF THE RSP OR RIF, YOU DON'T PAY TAX COMING OUT OF THE OTHER COUNT. SO IF YOU COMBINE IT TOGETHER, MAYBE YOU CAN, YOU CAN, YOU KNOW, GET ALL OF YOUR OLD AGE SECURITY, PENSION SALT. AGAIN, ALL OF THESE THINGS ARE THEY'RE NOT A SIMPLE WHEN YOU SORT OF LOOK AT ONE AND IT SORT OF OKAY AND LOOK AT ALL OF THEM, YOU WHICH ONE DO I DO FIRST AND WHAT IN WHAT MEASURE? YEAH, WHICH WHICH IS GREAT THAT YOU DO HAVE THIS CHECKLIST THAT PEOPLE CAN GO THROUGH AND CHECK IT ALL OUT.

AND YET WE ONLY HAVE ABOUT A MINUTE LEFT HERE. MAYBE IF YOU WANT TO TOUCH USING YOUR HOME EQUITY, BECAUSE THAT MIGHT BE SOMETHING THAT PEOPLE ARE THINKING ABOUT MANY PEOPLE. YEAH, SO HOMEEQUITY, ESPECIALLY FOR PEOPLE PLACES LIKE TORONTO AND VANCOUVER, LOT OF PEOPLE ARE REAL ESTATE, RICH CASH, POOR. >> AND THEY SAY, I DON'T WANT TO MOVE FROM MY HOUSE. SO WHETHER USER REVERSE MORTGAGE WEATHER, YOU CAN SET UP A LINE OF CREDIT. A LOT OF PEOPLE DON'T THINK THEY CAN QUALIFY FOR A LINE OF CREDIT, BUT THEY CAN. >> WE OFTEN RECOMMEND PEOPLE BORROW SOME MONEY FROM THEIR TO LIVE A BETTER LIFESTYLE, RATHER THAN BEING RICH.

IT 90 WHEN YOU SELL YOUR HOUSE RIGHT BUT ALL THESE AGAIN, ALL THESE THINGS ARE IN CANADIAN .

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10 Essential Tips for Successful Retirement Planning

Hello and welcome to our channel. 
Today we will be discussing the   top 10 tips for retirement planning.
Before we get started, it's important   to note that retirement planning is a personal 
journey and what works for one person may not   work for another. It's important to take the time 
to understand your own financial goals and needs,   and to seek the advice of a financial professional 
if you have any questions or concerns.
  As always, make sure to Like and 
subscribe to the channel to stay   up-to-date on all of the latest news.
Now, without further ado, let's dive   into our top 10 tips for retirement planning:
Number 1. Start saving early. The earlier you   start saving for retirement, the more time your 
money has to grow through compound interest.

Even   if you can only save a small amount each month, 
it's important to start as early as possible. By   starting early, you may be able to retire earlier 
or have more flexibility in your retirement plans.   It's also important to increase your savings 
over time as your income and expenses change.
  Number 2. Contribute to a 401(k) or 
other employer-sponsored retirement plan.   Many employers offer 401(k) plans or 
other retirement savings plans that   allow you to contribute a portion 
of your salary on a pre-tax basis.   This means that the money you contribute to your 
401(k) is not subject to income tax at the time   of contribution, which can help you save more for 
retirement. These plans often come with employer   matching contributions, which can be an excellent 
way to boost your retirement savings.

For example,   if your employer offers a 50% match on your 401(k) 
contributions up to 6% of your salary, and you   contribute 6%, your employer will also contribute 
3% of your salary to your 401(k). It's important   to contribute enough to your 401(k) to take full 
advantage of any employer matching contributions.
  Number 3. Consider a Traditional or Roth IRA. If 
you don't have access to an employer-sponsored   retirement plan, or if you want to save more 
for retirement on top of what you're already   saving through your employer plan, you may want 
to consider opening a Traditional IRA or a Roth   IRA.

These are both individual retirement accounts 
that allow you to save and invest for retirement   on your own. A Traditional IRA allows you to 
contribute on a pre-tax basis, similar to a   401(k), but the contributions are tax-deductible. 
A Roth IRA allows you to contribute after-tax   dollars, but the money grows tax-free and 
can be withdrawn tax-free in retirement. Both   Traditional and Roth IRAs have annual contribution 
limits, so it's important to be aware of these   limits when making your contributions.
Number 4. Diversify your investments.   It's important to diversify your investments in 
order to spread out your risk and potentially   increase your chances of earning a return. This 
can be done by investing in a mix of asset classes   such as stocks, bonds, and cash. Within each 
asset class, you can also diversify by investing   in a variety of individual securities such as 
different types of stocks or bonds. For example,   you could invest in large, medium, and small 
company stocks, as well as international stocks.   This type of diversification can help reduce the 
impact of market fluctuations on your portfolio.
  Number 5.

Understand your risk tolerance. 
Different investment strategies come with   different levels of risk, and it's important to 
understand your own risk tolerance when planning   for retirement. If you're not comfortable 
with a lot of risk, you may want to focus   on more conservative investments such 
as bonds or cash. On the other hand,   if you're willing to take on more risk, you may 
want to invest a larger portion of your portfolio   in stocks. It's important to find the right 
balance for your own situation and to review   your investment strategy regularly to ensure 
it aligns with your goals and risk tolerance.
  Number 6.

Rebalance your portfolio regularly. 
As you get closer to retirement, it may be a   good idea to rebalance your portfolio to be more 
conservative. This can help reduce the potential   for loss as you near retirement and need to 
start withdrawing from your savings. Rebalancing   involves selling some of your higher-risk 
investments and buying more conservative   investments in order to bring your portfolio back 
into alignment with your desired asset allocation.   For example, if you originally had a 60/40 
asset allocation (60% stocks, 40% bonds),   but the value of your stocks has increased 
significantly, you may want to sell some   of your stocks and buy more bonds in order to 
bring your portfolio back to a 60/40 allocation.   Rebalancing should be done on a regular 
basis, such as annually or every few years,   to ensure that your portfolio stays in 
line with your goals and risk tolerance.
  Number 7.

Consider working with a financial 
advisor. A financial advisor can help you   develop a retirement plan that aligns with 
your financial goals and needs. They can help   you understand your options and make informed 
decisions about your retirement savings. They   can also help you create a financial plan that 
takes into account your current and future income,   expenses, and debt. Working with a financial 
advisor can be especially helpful if you have a   complex financial situation or if you're not sure 
where to start with your retirement planning.
  Number 8.

Plan for healthcare expenses. Healthcare 
expenses can be a significant factor in retirement   planning, especially as you age. It's important to 
consider how you will pay for healthcare expenses   in retirement, whether that be through Medicare, a 
private insurance plan, or out-of-pocket expenses.   Medicare is a government-run health 
insurance program for those 65 and older,   but it does not cover all medical expenses. You 
may need to purchase additional coverage, such   as a Medigap policy or a Medicare Advantage plan, 
to fill the gaps in coverage. It's also important   to consider the potential costs of long-term care, 
such as nursing home or assisted living expenses.
  Number 9.

Think about your lifestyle in 
retirement. It's important to consider what your   lifestyle will be like in retirement and how much 
money you will need to sustain it. Will you want   to travel or pursue hobbies? Will you need to pay 
for housing or will you have a mortgage-free home?   Understanding your retirement lifestyle can help 
you plan for the amount of money you will need to   save. It's also important to consider how long you 
expect to live in retirement and whether you will   have any sources of income besides your retirement 
savings, such as a pension or part-time work.
  Number 10. Keep an eye on your retirement 
accounts. As you get closer to retirement,   it's important to regularly check in on your 
retirement accounts and make sure they are   on track to meet your goals.

This can help 
you identify any areas that need improvement   and make any necessary adjustments to your 
retirement plan. It's also a good idea to   review your investment strategy and make sure 
it's still appropriate for your situation.   If you're working with a financial advisor, 
they can help you with this review and   make any necessary changes to your plan.
Thank you for watching. We hope these tips   have been helpful as you plan for your retirement. 
Remember to consult with a financial professional   if you have any questions or concerns.
Make sure to Like and subscribe below to   stay up to date on all of the latest 
news. We will see you next time!.

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3 Ways to Invest Your Retirement Money | CA Rachana Ranade

Well today, I am going to tell you a story, 
a story of an ant and a grasshopper. When it   was a nice sunny day, the grasshopper was 
merrily singing certain nice tunes and he   was enjoying the weather while, on the other 
side the ants were very busy gathering food   so that they don't have to face a problem 
on a rainy day. Then what happened that,   the rain started and when the rains were 
pouring heavily, the ants were enjoying the food   in their own small home. Poor grasshopper, what 
might have happened to him? You want to see that,   the grasshopper is also merrily enjoying food,   because he's not the grasshopper of that original 
story, he's the next gen grasshopper, he knows   how to plan for his future, maybe he's seen my 
lectures and that's why he's a smart grasshopper.   Hey folks, CA Rachana Ranade here and I welcome 
you all to a brand new video which is about   how to park your retirement corpus.

I am sure 
that grasshopper hasn't still left your mind,   you might be wondering how did he get that 
food, so it's all about proper planning,   proper goal setting and if you're still 
not aware about how to set smart goals,   just have a look at this lecture whenever time 
permits and I am sure that that grasshopper   might be very very keen on learning, he might 
have set his retirement goal very nicely,   that's why he was able to enjoy the summer 
as well as the post retirement phase. Well now, it's time to press the reset button, 
why? Because you were in the accumulation phase   of your life till now but, right now we're 
assuming that you have already reached that   retirement phase and now, you're going to go into 
the decumulation phase. You might be wondering,   what is this? So this video, to be very honest, is 
not targeted for people who are in 20s or in their   30s, this is more targeted towards people who 
are at their retirement age of let's say 60 years   or even if you are 30 years, maybe, you can 
definitely watch this video for your parents   right, because they are going to be the ones who 
might receive a lump sum amount at retirement   and then they might get confused as to how can I 
park these funds so that I can decumulate them, so   that I can utilize them, withdraw them very nicely 
and lead a very comfortable life post retirement.   So just to give you one more quick clarification, 
accumulation phase happens when you are working,   whenever you are keeping that small part of 
your income so that you can easily retire early,   retire rich and now once you have 
reached this retirement phase,   now it's all about withdrawing your 
investments and leading a peaceful life.

Many times people ask me on WhatsApp or through 
emails that Rachana, we have received an x amount   as a lump sum retirement amount, now where 
should we invest this. If you really ask me,   there's no single answer for that, I will give you 
an example for this as well. Assume that there are   three friends a, b and c. Almost 25, 30 years ago, 
all had decided that when we retire, we should   have a retirement corpus of one crore rupees and 
today all of these three people have retired.   Budgeted amount was how much, target amount 
was one crore but, let's understand actually   what have they achieved, Mr. A saved only 30 
lakh rupees so I can say today his investment   corpus is just 30 lakh rupees, for b it is 90 lakh 
rupees, 90 lakhs is very close to the target and c   has managed to invest two crore rupees for his 
retirement. Now you only tell me one thing,   can I give them one single strategy or 
the strategies have to be different?   Answer is, the strategies have to 
be different but what will be the   strategies is exactly what we are going 
to discuss in the next part of the video.   So now let's understand all these three cases one 
by one.

The very first one, if you remember is of   Mr. A, whose target saving for retirement was 
one crore but he actually ended up only with 30   lakh rupees. Now what do you think, out of these 
three strategies, what should be his focus on,   should it be on income generation, on corpus 
protection or on corpus growth? Ideally, it should   be mainly on income generation and of course 
on corpus protection. He can't take the risk to   grow his corpus by putting his corpus in risky 
instruments like equity post retirement right.   So what are few solutions for Mr.

A, solution 
number one, unfortunately he will still have to   make a point to earn additional income, now how, 
if he is a skilled person, he might still give   some certain consultancy services and earn money 
Possibility number two if that's not, I mean if   that's not doable, maybe if he's staying in his 
own house, he can sub rent a part of his house,   so let's say he can have a paying guest to whom 
he can just give like one bedroom of his house,   something like an Airbnb model, can be operated 
by him as well right.

One more possibility is   that if he is able to cut down luxury to 
almost zero percent levels, then he will be   able to survive through his retirement and one 
last point which he will have to do is that,   even if he's spending on essentials, he will have 
to spend on the essentials very very tightly. So   I hope all the young viewers out there, they 
might have understood that come what may,   I don't want to be Mr.A post retirement. Now let's 
go to the case of Mr. B, his targeted saving for   retirement were one crore rupees and how much did 
he end up saving, he ended up saving 90 lakhs,   almost hitting the target right. What should be 
his focus on? His focus should be on number one   corpus protection, because he's almost there. 
Now, he doesn't want to lose the corpus but,   simultaneously he also wants to generate certain 
income. So for that what will he have to do,   number one, he should ensure as I mentioned that 
his capital is not eroded, so, for that can he   invest in equity, direct equity? No. He has to 
ensure that capital is not eroded number one.   Number two, can he still afford a slight amount 
of luxury, why not slight amount of luxury is   affordable because he's very close to his target 
and number three, what he can do is that he can   invest a part of his funds in something like 
a conservative fund wherein, 75 to 80 percent   exposure is given to debt and a very minor 
portion is it is actually allocated to equity,   so I can say that corpus growth can be a very 
very slight point which may be considered but,   again I am repeating, major focus on what, major 
focus on corpus protection and income generation.   Let's move on to case number c.

For case number 
c, he's at the most amazing position because his   target saving was one crore he has ended up saving 
to crore. Does he have to really bother about   something right now, no. Can he actually live 
his retirement life in luxury, absolutely yes.   Can he invest in equity as well, this person, 
yes, why not, because for him capital protection   is not very a big running crisis, he also has 
surplus corpus. So he can risk out some of his   money in equity. Now whether in direct equity or 
in equity mutual funds depends on his knowledge   right. So after understanding all these 
points, I hope you have understood that Mr.

C   has two further possibilities, possibility number 
one if he lives to the age where he had predicted,   let's say he had predicted that he lived 
to 70 and if he lives only till that age,   he will be able to keep some corpus even 
for his nominees, for his legal heirs.   If he outlives his expectation so for example he 
had planned that he will die at 70 as an example   and he lives till 80, still will he have 
the corpus to live that additional 10 years,   yes, because he has that additional quotient.

So 
all those youngsters out here watching the video,   I hope you understood that you surely love if you 
are Mr. C while you are at your retirement age.   Well before we move ahead to understanding the 
various investment options available, we have   to understand two prerequisites, which are these 
two, number one, even if you are in the retirement   phase, very very very important is the emergency 
fund. Now what is emergency fund, it's something   like you should have almost three to six months 
of your expenses very easily available with,   you it could be in your savings account, it could 
be in your FD, okay it could be in liquid fund but   it should be very much easily accessible. If 
you want to know more about emergency funds,   I have already made a video on that you can check 
it out later. Number two, very very important,   you should have a health insurance because as and 
how you grow more in age, chances that you might   face illness, you might face hospitalization 
or a shade higher so, you must have a proper   health insurance.

If you want to know more about 
health insurance again I have made a separate   video on that, I have recently released this on 
the channel. So be sure that you have knowledge   about both these two points and then only move on 
to understanding the various investment options. Emergency funds ticked off, health insurance 
ticked off, I am not saying tic toc, ticked   off okay.

Now with this let's move on to the 
government schemes and we are going to focus on   three schemes. The very first one is SCSS, senior 
citizen saving scheme. The second one is PMVVY   which is the Pradhan Mantri Yaya Vandana Yojana 
and the last one is POMIS which is post office   monthly income scheme. Well to be very honest, the 
first two are absolutely retirement focus schemes,   the third one can be opened even by people who 
have not attained the age of 60. So for example,   if I want to open a POMIS, I can, I can also open 
it in the name of a minor as well okay, but, then   why are we discussing it here, because it offers 
a benefit of a monthly income scheme, that's the   reason why I am discussing it in this section 
right. So let's understand all these three one   by one. Where can you open an account under SCSS, 
it can be opened up with any authorized bank or a   post office, for PMVVY it is solely operated by 
LIC. So if you want to open an account, you have   to approach an LIC agent or you can go directly 
to the LIC office.

For a monthly income scheme,   you have to open it with a post office I mean, you 
have to go to a post office and open an account.   Eligibility for SCSS, ideal eligibility is 60 
years but with certain uh conditions so for   example, if you have taken a early VRS, a special 
VRS, then age limit is taken down to 55. If you   are a defense personnel, the age limit is taken 
further down to 50 right, for PMVVY, it's a flat   age of 60 years and for POMIS as I mentioned, 
there is no age limit even a person of 20 years,   30 years, 40 years, 60 years also can open 
this account right. The next one is about term   tenure, for SCSS it is five years and it can be 
extended to further three years for VVY, it is   ten years and for POMIS, it is five years. How 
much are the interest rates? For the first two,   interest rates are seven point four percent 
for the quarter one of 21, 22.

So what does   this mean? Can the government change these 
interest rates periodically, unfortunately,   answer is yes. Can they do a downward revision, 
yes, can also they do an upward revision, yes   okay, but, recent past may they have been in 
a downward trend okay but, still I can say   that seven point four percent right now is not 
bad at all, okay. When you get paid out is the   big question now, if you're talking about SCSS, 
you get paid out quarterly, for VVY, you get, you   have an option you can choose monthly, quarterly, 
half yearly, yearly whatever and for POMIS,   as it's a monthly income scheme, it will be paid 
out on a monthly basis.

Minimum deposit, maximum   deposit is very well mentioned in this table you 
can see here, minimum is 1000 and its multiples   maximum is 15 lakhs. For VVY, 1.5 lakhs for a 
yearly pension and 15 lakhs for a monthly pension,   for post office MIS, it's thousand and it's and 
it's multiples and for maximum amounts it is 4.5   lakhs if it's a single account and 9 lakh if it's 
a joint account. There are certain clauses about   withdrawal and penalty as well, if you want you 
can just press the pause button, read out the   penalty and withdrawal clauses and then again play 
okay. So it's nothing like to be taught as such.   For taxation, for SCSS, PMVVY both are eligible 
under ATC, for POMIS it's not eligible under ATC.   If you check out, for all these three schemes, the 
aim is common and what is the aim, aim is income   generation and corpus protection.

Is there 100% 
corpus protection, yes, because all three schemes   are somewhere related directly to post office or 
to the government, so it's as good as saying that   government defaulted ,very rare scenario right. So 
in this case, I can say that corpus protection is   absolutely guaranteed, so go back again to case a, 
b and c. To whom is this absolutely suitable for,   it is absolutely suitable for the case a 
category.

Can case b, can Mr. B also invest   some part in this, absolutely yes, why not. A 
little less as compared to A and for c this,   can be a comparatively lower amount which 
can be invested in these three schemes. So I hope you have understood very well about 
the government schemes. Now let's move on to   investing in mutual funds. Ff you remember, I 
told you that depending on the risk appetite,   one can choose whether he should go for a debt 
fund or to a balanced fund, in that also we talked   about a conservative fund, you remember when I 
said 75 to 80 percent exposure will go to debt   ,only that balance small small portion to equity 
and the third one can be actually investing in   equity oriented funds but, that was for whom a? 
b? for c, because he had a lot of surplus corpus   as well right.

So let's understand one by one if 
I am talking again about Mr. A. is this option   available for him, none, neither debt, nor equity. 
Ideally, you should go ahead with a very safe   government scheme point only right. If I am 
talking about b, can b invest a part of his   corpus in debt funds, answer is yes, why not, he 
can do that. Now if he is interested in income   generation, what he can do is invest in debt 
fund and then go ahead with an SWP, what is SWP,   systematic withdrawal plan.

So like in SIP you 
transfer x amount monthly to that investment   that is mutual fund right, instead of investing 
monthly, here you withdraw monthly that is known   as a systematic withdrawal plan okay. So what is 
step number one, invest one chunk in debt fund   at one shot and keep on withdrawing part by part 
every month, that will give you a steady flow of   income per month right.

Possibility number two, 
if you want to go ahead with investing in equity,   now invest in equity was for whom ,ideally for 
Mr. C so now, let's understand how c will plan   his investment in equity mutual funds. Is he 
going to directly invest in equity mutual fund,   no understand how he would do it. So assume 
whatever chunk he has decided, first the entire   chunk will go in a debt mutual fund right and from 
the debt mutual fund, money will be systematically   transferred to the equity oriented mutual fund. 
So this is not called as an SWP, it is called   as an STP that is nothing but a systematic 
transfer plan.

So what will happen in this,   it is as good as an SIP only, but SIP is when? 
When you pay out of your own pocket every month,   in STP what happens, money has already gone out 
from your pocket you know it's there in the debt   fund, it's parked in the debt fund. Now money 
is only being transferred from a debt fund to   an equity fund. I hope you have understood what is 
a debt fund, who should invest in a debt fund. If   you remember we also talked about a conservative 
fund, a hybrid fund, we did talk about investing   in equity oriented mutual fund that was mainly for 
Mr. C, we also talked about SIP, SWP, STP wow, but   wait, still one big question remains how to choose 
which mutual fund, for that, I have a separate   course on magic of mutual funds so you can surely 
think about investing in this course, you'll get a   lot of knowledge about how to choose a mutual fund 
and so that you can invest with full confidence.

Let's move on with our last investment 
avenue, which is investing in equity,   my favorite one right. But then, is it 
applicable for Mr. A, no, b, no, for c,   yes. But then, how? Can you invest directly in 
equity ,that depends on whether that person has   that much knowledge on equity or not. If he does 
not have knowledge, he can acquire that as well.   I will definitely like to share a very nice 
experience which I had. So whoever enrolls for   my courses on various like basics of stock market, 
fundamental analysis, technical analysis whatever,   I do conduct a zoom meeting sessions every 
month with all these participants. There is   one participant named Shashi and she is I guess 
60 plus years. She has been a scientist, has zero   commerce background but then, post retirement she 
said, I would love to learn about stock markets.   She has learned a lot about stock market, she 
keeps on asking me questions every month and I   am so happy to answer her questions. That's how it 
shows that there is no age barrier for learning,   so if you still believe that you have that 
enthusiasm for learning, age is just a number,   right.

So, what you can do if you have that 
knowledge in stock market ,you can invest,   if you don't have, acquire the knowledge first and 
then invest in stock market but again coming back   to our case study, this one is not applicable for 
a, b it's applicable only for c. Next option can   be investing in Nifty bees. So if you don't know 
what are bees, what are Nifty bees, I have already   made a separate video on that. I have talked 
about various types of bees like gold bees,   Nifty bees, bank bees, in that video you will 
get a detailed input on what are nifty bees. You might stop working, but, your 
money might not stop working,   If, you have parked it efficiently.

I hope 
you have enjoyed this video. If you have,   don't forget to share it with your friends 
till then take care, Jai Hind and bye bye..

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How To Invest With NO MONEY Down: Turn $0 Into Infinite Returns -Robert Kiyosaki (Millennial Money)

– Hello, millennials and all generations. This is Millennial Money,
featuring Robert Kiyosaki. I'm your host, Alexandra Gonzalez. You know Robert as the best selling author of the number one personal
finance book of all time, "Rich Dad, Poor Dad." But I'm happy to announce
that Robert just released his brand new book, "Fake: Fake Money, Fake
Teachers, Fake Assets." You can get your copy
by following the link in the description below.

This topic was highly
requested by you guys. So, due to popular demand,
in today's Millennial Money, we'll be covering how to invest with OPM or other people's money. Here's how Robert explains OPM. – It was a long time ago
– Yeah. – when I first started Millennial Money, and I made my usual wise-ass remark, "Only lazy people use their own money." And that's because I have spent much of my life raising capital.

You know, today you have
crowdfunding and all that stuff, but the reason I had to
learn to raise money was because I had no money. And so, if you read "Rich Dad, Poor Dad," in there my rich dad always said, "Never say I can't afford it." And it was my rich dad and many of my teachers
subsequent to that, that said, "Lazy people
always say I can't afford it. "I don't have the money. "That's why they're poor." They have a poor mindset. So, instead of figuring
out how to raise money, it's just really easy to be a loser, and I call them losers. It pisses them off because
we all have the power, if we wanted to, to not be poor if we learned how to raise money. So, I hear, you know, and
the reason I get upset, I still get hot like this. (Alexandra laughs) My poor dad, my PhD Father, he always said to me, he says, "You know, I'd be a rich man
if I didn't have you kids." And I said, "Well, you know, dad, "it's not my fault you had kids." You know, I mean, "You know, I just can't afford
it because I have kids." And the more he said
that, the angrier I got.

So my rich dad, at age nine, he says, "Well, that's
why your old man's poor, "because he's lazy. "He thinks his PhD is gonna carry him." He says everybody can
say, "I don't have money. "I can't afford it." He says, "That's why he's poor. "He's lazy." But my father kept going
back to school, you know, Stanford University,
Chicago, Northwestern; he never learned any of this stuff. They still don't know it. Because most teachers want a
pay check, pension, and tenure. They want job security.

So the mindset is different. And that's what they teach the kids. – Next, Robert tells us
the number one phrase that keeps people poor. Now pause, I want you
to leave a comment below if you know what it is. Don't cheat. – So the reason I say only
lazy people use their own money is because it takes much more
intelligence to raise capital. And so I've never been able,
ever since my rich dad, since a little boy, my
rich dad forbade me from ever saying I can't afford it.

He says figure out how you can afford it. "How can you do something?" Figure out how you can do something. So, over my lifetime, most
of the projects I've started, I've never had any money. I like not having money, because it forces me to
think; I get creative. I have to educate myself, I
have to talk to rich guys. "How'd you do this? "How'd you do that? "How you do that?" And what has happened to me, and I just turned 72, I've never needed money. Because if I need money, I
figure out how to raise it. So today you guys have
crowdfunding and all that. I mean, I don't know what that stuff is.

But it's easy to say, "I can't afford it." All the poor people say,
"I can't afford it." All the poor people say,
"Well, let's tax the rich." All the poor people are saying, "Well, give me a free education,
free food, free schooling, "free manicures, free pedicures." There's laziness, my opinion. – One of my favorite
things that Robert teaches is how your mindset can
literally change everything. If you have an open mindset, you can really change your life. So Robert explains how his
mindset changed how he invests.

– So, you know, over my lifetime, I've raised hundreds
of millions of dollars. And it's because I didn't
have money as a young person that I learned how to raise capital. And it's really quite simple. You have to find an asset that's worth more than me, you know. If they can't invest in me,
because that's called slavery, you know, by me, you know? So what I do is, when I started off, I write about it in "Fake," I started off looking for this one little piece of real estate. I found an excuse, you know, this one bedroom, one bath
condominium on the beach in Maui. And I found an excuse for
people to give me the money. All I had to do is assure
them I'd pay them back.

So my first deal was an
infinite return deal. I had no money in the deal
because it was 100% debt. It was an $18,000 condo. You can't touch them
for that much any more, but the economy was bad. So I buy this $18,000 condo;
the guy wanted 10% down, you know? You don't need higher math. 10% of 18,000 is how much, sports fans? 1800 dollars. I could've use my money, I had the money. But that would be too easy. – Robert tells us lazy
people use their own money. Let's find out exactly
what he means by this. – Only lazy people use their own money and that's what really pissed
off a lot of people out there. Go, "You calling me lazy?" I said, "Yes, I am." Because you're the same
type of person will say, "I can't afford it.

"I can't do that." That's the problem. It's up here; it's a real
estate between this ear and that ear. "I can't do that." Most of my family say, "Oh,
yeah, I can't afford it." My father taught to say that;
my mother taught to say that. My rich dad said I should never say that. Let me ask you this question. You know, you work for
the Rich Dad company.

How much of my money is in this company? – Zero. – Zero. Zero. – When using OPM, one
question I had for Robert was what happens if the deal goes wrong? He answers by telling the story of one of his biggest mistakes. – So, the biggest mistake. So, I was doing very well here. This was 1973, I started
buying my first deal. And that was an $18,000 deal. $1800 down, $25 a month. Cash flow.
– Cash flow. – I was infinite. And then I kept doing that,
I had a lot of property. And then I decided I go here. So my first business was a nylon and Velcro surfer wallet business. And it didn't sell. So you know, everybody knows
what those wallets are today. But back then this is 1974 or five. Yeah, '75. They didn't know what the wallets were.

So we're going broke really fast. We bought 100,000 of
these wallets from Korea. We ship it to our
warehouse in Long Island, and we're borrowing
money from our investors. So we raised about $600,000; I got this little goofy
wallet business up. So we're in serious trouble. I owed my father about $200,000, my rich dad was laughing at me. We're going broke so quickly. Because we couldn't move the
wallets, a 100,000 of them. They were sitting on
this (murmurs) warehouse on Long Island. And nobody would buy them from us. So then the good thing about
stupidity, there it is, makes you smarter.

So I started thinking;
we started thinking. Said what's wrong? And I said, what was happening
in the world at that time, all the baby boomers are fat,
so they had to start running. So jogging was coming online, you know, and nobody jogged before. You know, so these guys are all jogging. And then we're reading the paper; we're sitting in Honolulu,
going broke fast. And we read the paper, this jogger went to Golden Gate Park in San Francisco and was jogging around the park. And what the jogger did was he had no place to put his car key. So what did they do? He puts it on the front tire of his car and goes for a jog around the parks; we're reading this newspaper. And voila, when he comes back to his car, the car wasn't there! – Oh, gosh. – So the guy says, "They stole my car!" – Oh, my goodness. – And so the question was, on the headline of the newspaper article, "What does a jogger do with their key?" And so we sat there, said,
"Oh, my God, a problem.

"A problem." So with that, I designed the shoe pocket and you can see this picture right here. It's Playboy magazine. I mean, she's nice looking
young model with nothing on but a shoe pocket. (Alexandra laughs) But anyway. So we're going broke so fast by then. But when that picture hit Playboy, suddenly, we were geniuses. And everybody started
throwing their money at us. And all this product,
our wallets were selling; our shoe pockets were selling. Investors were happy.

And the sales went through the roof. So we were extremely successful. So we went from risk,
stupid, smarter, successful. But the problem was how do
we finance our inventory? Because the demand was worldwide, and we couldn't keep up with demand. So I borrowed another $100,000. And I went to my CPA, my CFO, Stanley. So I said, "Stanley, will this $100,000 "solve our inventory problem?" He goes, "Yes, it will." So I gave Stanley the check. And he ran off with it. – Oh, my goodness. – I had no signed documentation; I turned it over to him.

He said I owed him the money. So that was one of my first, you know, six figure, seven figure mistakes. – This is another question all of you flooded our
comments with on YouTube, and all of Robert's social media. It's: what advice do
you have for millennials just starting out? Watch what Robert says. – Well, number one is investing; invest in what you love. I love business. I love real estate. I mean, I really love it;
I own this building here. And I love gold and silver. So I invest in what I love. Most people say, you
know, do what you love, but I'd rather invest in what I love. But I love being an
entrepreneur, I love investing. It's like Shark Tank to me. I'm always looking at new
businesses, new deals. It's just a game like this. You know, when you look at
the financial statement, that's like your scorecard.

It's like your golf scorecard
is your financial statement. But as you know, our schools teach us nothing about financial statements. – Finally, we wrap up
our discussion about OPM with Robert's final words for those of you that use the phrase, "I can't afford it" as an excuse not to invest. – But it goes back to
the original question: Why did I say only lazy
people use their own money? Because lazy people always
say, "I can't afford it." You know, "I can't do it." It's easy to say that. And that's why they're poor. It's harder to go raise a million dollars than to say, "I can't afford it." – All right, guys, that's it for today. But before you go, I
wanted to let you know of the new show we're
launching, Weird Money. And this is gonna be our host, Derek. – Howdy, guys, I'm Derek. I'm gonna be hosting Weird Money on the Rich Dad YouTube channel, and I look forward to
talking to all of you about the most bizarre and
out of this world parts of our financial institutions, the economy, jobs, all that sort of stuff.

And thank you, Alex, for introducing me. – Thanks, I'm really
looking forward to it. And well, guys, don't forget to subscribe and hit the notification
bell if you wanna be notified on this new show. Bye, guys, see you later. (upbeat music).

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Day 2: Abundance Awareness | Wealth Affirmations | Yes I am Positive

welcome to day two of wealth mastery abundance 
means plenty or a very large quantity of something   having abundance goes beyond money or material 
things it's tapping into the awareness that in   nature there is a wealth of everything nature is 
always replenishing itself it's a feeling of being   connected to that wealth and the feeling that we 
have and deserve an abundance of everything from   love to health and wealth it's about what brings 
us joy and fulfillment so how do we create this   abundant mindset millionaire mind author t harv 
ecker says if you want to change the fruits you   will first have to change the roots if you want 
to change the visible you must first change the   invisible that invisible is what happens between 
our ears in our consciousness and subconsciousness   this can sometimes be a daunting task 
especially if we've made a long time   habit of worrying about money often this mindset 
comes from how we were raised and our family's   attitude and feeling about money awareness 
is the first step to changing paying close   attention to our thoughts and becoming aware of 
our constant negative self-talk that so many of us   engage in becoming the witness to our thoughts and 
questioning the source of these beliefs we have   is paramount so we can then start to change them 
when we shift our thinking focusing on possibility   instead of scarcity there is an energetic shift 
it's important to start visualizing and feeling   what it would be like to have an abundant life 
filled with wonderful people satisfying work   and a sense of purpose as we make this positive 
change we are on the path to mastering wealth so we'll focus today's affirmation 
meditation to instill abundance let's take a moment to center ourselves   and find a comfortable sitting 
position either on a chair or stool and become aware of your back that it's straight and yet relaxed release any tension in your shoulders and when you're ready allow your eyes to close breathe in slowly and deeply in and out in and out now let's take a moment to 
tense and release our muscles   starting from our shoulders tense and release our arms tense and release and our hands tense and release now our legs tense and release calves tense and release 
feeling your whole body relax your mind and heart opening now see yourself bathed in a soothing white light 
from the top of your head down over your neck your shoulders your arms your legs past your knees and all the 
way to the soles of your feet and allow this white light to help 
you feel safe and open to receive now let's take a deep breath in through our 
nose for five hold for two and then breathe   out through our mouths for five breathe 
again one two three four five hold one two   and release two three four five now repeat 
after me i have a great relationship with money i am worthy of being abundant 
in every part of my life abundance opportunities are always coming to me i deserve to be wealthy and abundant let's breathe in again for 
two three four five hold   one two and release two three four five now repeat 
after me i am open and receptive to all abundance i produce financial abundance doing what i love i fully believe in my ability to attract money i am aligned with the energy of abundance   let's breathe in again for two three four 
five hold one two and release two three   four five and repeat after me i am so 
grateful for my abundant prosperous life i am free of fear and lack consciousness i naturally attract money and material abundance 
i love to share all my abundance and wealth and let's end our meditation by 
placing our hands on our hearts   and affirming ourselves with the 
words i am the master of my mind i am the master of my heart i am the master of my body i am the master of my life and so it is congratulations on completing day 
two of wealth mastery abundance is your birthright   so take these affirmations with you into the world 
and feel good about yourself feel good about money   and draw it to you like a magnet 
until tomorrow be abundant and well

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