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Dave Ramsey’s Retirement Planning Advice Is Flawed: Here is How

Dave Ramsey is fantastic if you are needing some 
simple financial help to get out of debt maybe   you've been irresponsible with your money you've 
racked up toxic Consumer Debt and you're looking   to implement some basic strategies to eliminate 
that debt and to create new habits for yourself   when it comes to your money Dave has impacted 
millions of people when it comes to getting out   of debt when it comes to understanding money on a 
very basic level uh in a better way the challenge   is what has happened is Dave has helped millions 
of people get out of debt and in that process he's   built a lot of trust up with that people and so 
then therefore they start listening to him for   retirement advice for planning for the retirement 
future and in this video what I'm going to do is   I'm going to cover the flaw the major flaw that 
is in Dave Ramsey's retirement strategies I'm   not gonna argue whether he's right or wrong 
about returns but I am going to point out the   massive flaw that most people are missing that 
he never talks about can't wait to get into it   if you haven't already make sure you subscribe and 
hit the Bell that way you're notified every time   I launch a new video Let's Go hey what's going 
on cash flow hackers it's Chris with life 180.   if you've been watching this channel a while you 
know how I feel about Dave Ramsey um but I want   to kind of take the conversation about Dave to 
a little bit of a different level in this video   um here's the deal Dave is really good when it 
helps you when it comes to helping you get out   of debt but his advice on retirement planning 
is is absolutely in my opinion atrocious one of   the biggest challenges that I have about Dave and 
his strategies is that he's been singing the same   song for 30 years right he has not changed his 
philosophies his strategies he hasn't really even   changed the numbers that he uses when it comes to 
retirement planning and the expectations that you   should have around your entire your retirement 
planning even though the economic environment   has changed metamorphically right so if you 
understand that there are variables that impact   your money and impact what you can expect in 
retirement you have to understand that there are   no simple rules that Dave tries to tell you like 
Dave tries to tell you to follow to execute now   I will say um that you know the advice Dave gives 
is like it's better than nothing like that I will   say it's better than doing nothing and it's better 
than what most people do but I also believe that   it's it's a problem that if you follow his advice 
expecting a certain result and then you get to the   end of the rainbow and there's no pot of gold and 
you're actually not anywhere near you where you   thought you'd be that's going to be a problem once 
again we're not talking about the debt elimination   stuff we're talking about which by the way is a 
phenomenal thing to understand that and get out   of debt like so from that perspective I applaud 
him now moving forward when we're talking about   wealth creation that's where he falls down when 
it comes to retirement planning what I did is I   built a spreadsheet because I think numbers say 
a million words spreadsheet you know we can go   through this and what I'm going to do is I'm going 
to share this so here's what I wanted to do here   I wanted to take a look at a household income 
of about a hundred thousand dollars in today's   money I want to save 15 of that income annually 
I'm going to assume an expected return of 10 per   year okay so what this does is like Dave is going 
to sit here and talk about the fact that you need   to save money based on retirement you need to to 
Target retirement account values based on your   hundred thousand dollars a year of income the 
challenge is Dave doesn't take into this into   account when he's ever talking about it I don't 
know why either I don't know why if he if he   thinks people just aren't smart enough to figure 
it out but to me this is just basic Financial   stuff that you need to know the understanding 
of you need to understand to be able to make an   educated decision if you don't understand how in 
inflation impacts your financial needs long term   you're never going to be able to make a good 
financial decision and especially that we're   in this environment right now where inflation is 
4.9 percent last year it was over nine percent   long term since 1971 inflation has been over 
four percent actually nearing four and a half   percent so like from that perspective looking at 
it from a long-term historical average this 4.9   inflation environment that we're in right now that 
everybody's freaking out about is not even high   it's just a little bit above average now a lot of 
people would argue that inflation is actually way   worse than what we're talking about right now 
because the actual impact on the calculation of   inflation uh the the impact is is much greater and 
worse on individual households uh than what the   calculation says because they've actually changed 
the calculation over the past 40 years on how they   determine the inflation numbers which to me is 
Criminal on its own but here's the deal we have uh   we have the hundred thousand dollars of income so 
what I have over here is I have um the retirement   account balance needed to live with a four percent 
rule so if you don't know what the four percent   rule is it's the rule of thumb that says you can 
distribute four percent of your retirement account   value and not run a significant risk of running 
out of money during your lifetime so that is like   the safe distribution calculation expectation so 
what this is showing is that if you had a hundred   thousand dollars of income you need 2.6 million 
dollars um actually it's a hundred four thousand I   didn't do it for year one if you get to year two 
and um you know your real need on four percent   inflation is going to be a hundred four thousand 
because your cost of living with inflation going   up it means you're going to need more money 
it needs your hundred four thousand dollars   next year with four percent inflation is gonna 
feel like a hundred thousand dollars of income   Fields today the challenge is household income 
historically is only going up in about three   percent so it's lagging actual inflation and this 
is why the middle class and the poor are getting   poor and there's this growing divide between the 
wealthy and the middle class it's not so much   other economic policies even though that has a 
play with it long-term inflation is the greatest   tax that is hidden to the American population and 
it has a hugely negative impact uh on the middle   class and lower class the most right so ultimately 
this column is what I would call your freedom   number your freedom number is simply the amount 
of money that you need in an account to be able   to retire to be able to be completely financially 
free and so right now use using traditional four   percent rule methodology and now I'm not taking 
into account Social Security or pension or   anything of that nature so if in fact you did 
have a pension if in fact you want to lean on   social security for any reason you'd have to look 
at your calculation and reduce those off of this   number and then you divide that by four percent 
and that will give you uh this number so if you   said let's say you had fifty four thousand dollars 
of pension and social security you'd subtract that   out that'd be fifty thousand divided by uh divided 
by the uh four percent and that would get you what   your uh Freedom number would be it would tell you 
how much money you need in that account to be able   to kick off passive income for you for the rest 
of your life now here's the challenge as I said   household income is only going up at three percent 
and Dave is saying hey you need to save 15 even if   we earn 10 which is by the way wildly unrealistic 
right I'm showing this at at 10 and it shows you   at 6.561 million here but really that's because 
of the fact that it's assuming that you're going   to have a 281 thousand dollar uh need for annual 
income now here's the deal your income is going   up at three percent per year that 283 35 years 
from now because I'm assuming it's a 35 year old   retiring at 65.

Dave doesn't talk about the fact 
that if you earn 100 Grand right now you're going   to need 281 to be able to maintain your standard 
of living that's not 281 000 in today's money   that's 281 000 in future money right I just did 
a video the other day talking about uh inflation   and the inflation crisis and ultimately how that's 
going to impact you um and and how that's like the   history of this inflation and and where it looks 
what it looks like moving forward into the future   um but this 281 by the way is assuming only 
a three percent increase at a four percent   historical average of inflation if we look at 
it that way you're going to actually need 394   000 and if you back that out you're going to need 
9 million 865 000 and the problem is all of your   Social Security cost of living adjustments cost 
of living increases they don't keep up with the   actual rate of inflation so the need for you 
to take more responsibility for your retirement   planning is becoming greater and greater and 
greater and as as inflation keeps going up this is   a way if you think about it from a social security 
perspective this is a way that the government's   able to kind of save Social Security if they 
can inflate the currency of four percent and   devalue the currency but then only give you cost 
of living adjustments at two percent that means   they're recapturing that money and saving the 
program simply by the way they're doing that but   ultimately they're stealing that money from you 
through a hidden tax the problem is Dave doesn't   talk about all this and what he does is he talks 
about your need for this money he talks about   saving a million dollars and I got news for you 
you could save three million dollars and if you   get to uh retirement and you have three million 
dollars but you need to live on 281 000 a year   you are going to be up the creek without a paddle 
you're not going to be prepared and you're not   going to be in a position um you know ultimately 
where you're you know going to be able to uh   have a a solid situation you know that's that's 
really what it comes down to you're not going   to have any kind of predictable income you're not 
going to have any stability uh you know and you're   ultimately going to have a lot of risk especially 
when it comes to Market risk sequence of return   risk and and just Market volatility risk when 
it comes to your retirement if you if you follow   his plan you're going to be under saved when it 
comes to retirement simply because you didn't give   enough credibility to the impact that inflation 
is going to have on your future needs because   think about it this way everything I just showed 
you was a 10 assumption I could show you a lot of   ways that 10 is completely unrealistic especially 
when you talk about actual real returns I would   say six to eight percent is is the more realistic 
expectation and even then there's some risk   involved right so if we if we back that out what 
what that would look like at even eight percent   which is I think the more I guess traditional 
method that most financial advisors would say   you could get from a long-term perspective if 
you look at eight percent you're only going to   have just over four million dollars that's about 
at retirement 35 years from now for a 30 year old   right when you hit 65 so in that scenario you're 
still looking at only accumulating about half of   the money that you're going to need just to 
maintain your standard of living I don't care   how much you have in Social Security or pension 
it's probably not going to make up that Gap   and you're going to have to take a reduction in 
standard of living even if you follow his advice   and have no car payment and have no mortgage or 
anything like that it that that doesn't matter   that that's not gonna make up for the Gap that in 
inflation has caused for a problem for you and so   that's something that you need to consider so my 
encouragement to you is to go through your plan   figure out what inflation is going to do to your 
retirement planning needs and if you want help   with this I've got a team I've got a certified 
financial planner on the team that's happy to walk   through this give you a consultation walk through 
your needs walk through your current plan and and   give you an analysis and an evaluation on what you 
need to do moving forward to reach your goals on   a predictable basis one of the things I always 
ask I always ask people four questions first and   foremost doing what you're currently doing do you 
know what rate of return your money needs to earn   to be able to retire when you want and guarantee 
your standard of living for the rest of your life   if you don't know the answer to that question then 
everything else is going to blow up you can't plan   accordingly if you don't know the answer to 
that question second question is if you if you   don't know that number the question is do you know 
how much more money you have to save to be able   to retire at your desired standard of living and 
be able to retire when you want and if you don't   know the answer to that which most people don't 
I've literally met one person in my life that   actually knew those numbers ahead of time then 
you start backing it out and go okay how much   longer are you going to have to work if you get 
to retirement age and you haven't met that and you   still need to work well a lot of people they have 
to work an extra decade just to make it make ends   meet right people are thinking they're going to be 
able to retire at 65 but they have to work till 75   or 77 or 78 it's it's really just a sad situation 
but then the challenges our health a lot of times   sometimes sadly unfortunately fails on us we don't 
when you hit 65 there's no there's no promises   there's no guarantees heck there's no guarantees 
anyway but especially when you hit 65 our health   starts to fail like and for most Americans most 
people in this world Health starts to decline at   least and there's start to be different needs our 
bodies break down maybe your body isn't going to   be as capable of doing the job that you did for 
all those years to earn your income and so now   you have to start being like even if I wanted to 
keep working what is my real earning potential am   I really going to keep being able to do that or 
if I get sick what kind of reduction in standard   of living am I going to have to take just to be 
able to last the rest of my life and not run out   of money right and so these are the things that 
you need to consider if you haven't already like   I would encourage you to really do a deep dive 
because my favorite favorite quote in the world   I think and it's kind of tongue-in-cheek but just 
because the ostrich buries his head in the sand   doesn't mean the Lion's Den or plans have changed 
right this this is your problem this retirement   thing is a real problem it's a it's a thing that 
you need to figure out a solution to and you need   to create a plan for as good as Dave is at helping 
you get out of debt he's not great at helping   you plan for your future um and and his his 
information while it seems great because it's kind   of geared towards the masses it's actually in my 
opinion it's it's super detrimental to most people   that are listening to them because you're going to 
get to the end of the rainbow there's a going to   be no pot of gold you're going to find out you got 
to work longer if you're healthy enough to do so   or you're going to have to reduce your standard 
of living because you didn't take some of these   variables into consideration so anyway hopefully 
you found value in that if you did please like it   share it get it out there to people subscribe 
hit the Bell that way you're notified every   time I launch a new video until next time have a 
blessed inspirational day we'll talk soon see you

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Retirement Planning Home

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The $65,000 Roth IRA Mistake To Avoid

– I've seen too many of
you making some mistakes when it comes to investing
in your Roth IRA. One of them could cost you
$65,000 and the other one could cost you almost $500,000. You guys are seriously going
to make my beard turn more gray than it already is if
you don't knock it off. So let me show you what to watch out for, that way, you don't lose more money than you have to and
I can save a few bucks on hair dye for a couple more years.

A Roth IRA is a self-directed
retirement account where you can contribute after
tax dollars to be invested. Since the money going in is taxed, the growth of your investments are not taxed and the money withdrawal from the account are never taxed either, as long as you don't try to pull out some of the money before the age of 59.5. There is no such thing
as a joint Roth IRA. So if you and your spouse
want to contribute to one, then you'll have to do it individually, hence the name Individual
Retirement Account. If you both have enough
earned income separately, then you can each invest up to the $6500 limit for the year. If one of you works and the other doesn't, but you file a joint tax return, then the person working can, of course, contribute to a Roth IRA and
your spouse can contribute to a Spousal Roth IRA as well. Remember, these accounts are
owned by the individual person and on paper, not co-owned by both people.

I want to try to encourage you to max out your Roth IRA every single year, if possible, because if you
don't do it for that year, then in the future you
cannot go back and contribute for a previous year once that time limit has passed. A Roth IRA is one of those accounts where I would bend over backwards to make sure that I can
put in the full amount allowed every single year. In my order of operations for
what to do with your money, I have maxing out a Roth
IRA right after investing up to your employer match and HSA. That is how important
this type of account is. The good news with this
is that you actually have a timeframe of 16
months to contribute for each calendar year. So if we are in 2023
right now, then you have from January 1st, 2023, up until
when taxes need to be filed for that year to contribute,
which in this case, would be April 15th, 2024.

That's how it is every single year, so ignore the actual dates in my example and pay more attention to the timeframes since the date taxes are due
will change by a few days from year to year. Most brokerages will ask
you which year you want to contribute to. For example, I personally
invest using M1 Finance, which you can check out down
in the description below, and also get a deposit bonus as well. If I contributed to my Roth
IRA through them right now, then they would ask if I wanted the money to go towards 2022 or 2023, since at the time of recording this, we haven't hit the date
where taxes are due. This is great because it
gives you some extra time beyond the current year to
contribute Roth IRA money for that year.

Before I tell you the next mistake that I see way too many people making, please help support my dog Molly by hitting that thumbs up
button and sharing this video with anyone you think it would help. Once you deposit money into your Roth IRA, there's one more extremely important step you need to do that I see a ton of people missing, and that is
actually investing the money. I can't tell you how
many people I've talked to over the years who just put money into the account assuming
it would automatically grow, or knowing that they
needed to invest the money, but just forgetting to do
it because life happens, and things naturally slip out of our mind, only to check their account
balance years later, realizing that it hasn't grown in value because they didn't invest the money.

Stop the nonsense here and
just set up auto investing within your investment account, and if you're waiting because you think that you can time the market
to buy in at a lower price, you can't, because it's
nearly impossible to do, so just to get the money
invested right now. If you know how you want to
invest the money, then great. If you don't, then I personally
like the two fund portfolio for people who are in
the accumulation phase of investing and in the
three fund portfolio for when you're closer to
retirement or in retirement.

I'll have a link to a
playlist then I made just for you where I teach you
about both of those portfolios down in the description below
and above my head as well. When you contribute to a Roth IRA, all of your money is not
locked up until 59.5. You can withdraw the
contributions that you've made before that age without paying a penalty, but you cannot withdraw any of
the gains within the account. For example, if you've contributed $6500 and the account has grown to $10,000, then you can withdraw
the $6500 contribution, but you cannot touch the $3500 gain without paying a penalty until 59.5. I've gotta interject for a second to give my personal opinion on this. While withdrawing money
penalty-free is an option, I want to encourage you not to do this. To be brutally honest, I think that doing this
is one of the dumbest, most irresponsible, short-sighted
things that you can do.

Withdrawing just $6500
worth of contributions would cost you $65,000 in
future investment growth. So when any money is
taken out of this account before retirement, think
about how it's actually going to cost you 7,800 Chipotle burritos, or 65 new Apple iPhones, or anything else that you would buy for that amount of money. And yes, I am fully aware
that you can do a penalty-free early withdrawal up to
$10,000 before the age of 59.5 for a first time home purchase. But this is just as stupid as withdrawing your contributions early
because that $10,000 is costing you over $100,000
in future investment growth when you pull that money out. Average annual home appreciation over the past 12 years has been 6.11%, and the US stock market
has returned 12.27%. Leave your money in the freaking Roth IRA and go earn that $10,000 that
you need to buy the home. Responsible investing takes time, like five or 10-plus years, and this money needs time to grow.

The second you withdraw
any of your contributions, you are cutting down that tree before it even has a chance to grow fruit. Once you withdraw
contributions from the past, you cannot replace that
money in the future. I get that emergencies happen in life, so that's why you need
to have money set aside in an emergency fund to
pay for those things. Do not, under 99.999% of circumstances, use your Roth IRA money for anything other than when you retire. One thing I see way too many people doing is investing in a
taxable brokerage account before they have their Roth
IRA maxed out for the year.

This is a huge mistake from a tax savings
perspective for some of you because of how each account is taxed. With a Roth IRA, you invest with money
that's already been taxed, so the money can grow tax-free
and be withdrawn tax-free. With a taxable brokerage
account, you are paying taxes for the ongoing dividend
distributions every single year. Then you have to pay capital gains tax when you go to withdraw the money.

Since the money within
a Roth IRA will grow and can be withdrawn tax-free, realistically, you want
this account to get as large as possible, but not at the expense of
your personal risk tolerance. You should not take on
additional levels of risk by investing in more
risky, unprofitable stocks that random YouTubers have been pumping over the past few years or actively manage funds to
try to achieve higher returns. 99% of people, including
myself, cannot handle investing in something with a
high risk and potential, potential, high return. So don't even bother. The money in this account
is for retirement, so is it really worth it to risk that 60-year-old's financial wellbeing because you decided to gamble with their money right now? I doubt it. Some of you might be over
the income limit to be able to contribute to a Roth IRA, or some of you will be at
that point in the future as your income grows. You can still contribute to a Roth IRA to take advantage of the tax-free growth by doing a backdoor Roth. To simply explain the process,
all you do is contribute to a traditional IRA.

Do not invest the money yet. Then contact your brokerage
to have them convert the money to a Roth IRA. Now, I have done it with M1 Finance before and it was extremely easy. It only took I think two or three days for the money to get into my Roth IRA. Only do this if it makes sense based on your current tax rates
and future financial plans. There's two things that you can do. if you are someone who thinks that you might be over the income limit, but you are not going to 100%
know until the year is over. Number one, you can
either wait until January of the following year,
like we talked about in one of the previous mistakes that
I mentioned, or number two, you can just contribute the
money to a traditional IRA, then do a backdoor Roth within
the year to get the money into the account so it can be invested.

That way, if you are
over the income limit, you've already done the backdoor Roth. If you're under the income limit, no big deal 'cause you had to pay taxes on that money that was going
into the Roth IRA anyways. A question I get a lot is
whether or not you can contribute to a Roth IRA on different brokerages. The simple answer is yes. This is how it would play out. You can contribute up to the max for one year
on, say, M1 Finance.

Then you can decide to contribute up to the max on fidelity the next year. Then you can contribute up to the max on Vanguard the following year. So by the end of that third year, you would have three different Roth IRAs with three different brokerages, and there is no problem with that. You can take it one step further. If you decide, hey, out of these three, I actually like M1 finance
better than the other two, you can convert the
Roth IRAs with Fidelity and Vanguard into your
M1 Finance Roth IRA.

You can also split up your contribution for the same year among
different brokerages. So if for this year you want
to say contribute $4,000 to an M1 Finance Roth IRA and the remaining $2,500
into a Fidelity Roth IRA, then you can do that without any problems. The only thing you
cannot do is try to game the system by saying contributing $6500 into an M1 Finance Roth IRA and $6500 into a Roth IRA with another brokerage. You cannot exceed the maximum
amount allowed per year across all of your Roth IRAs on all of your brokerage accounts. Technically, you could do that since all of the brokerages aren't talking
to each other to keep track of what you are contributing, so you have to self-manage this. I would highly, highly recommend making sure
that you do not do this, whether it's on purpose or on accident. I don't know what the penalty is for this, but all I know is that you do
not want to get caught trying to defraud the government
in any way, shape, or form.

Long-term investing is the name
of the game with a Roth IRA. This money is for when
you are in retirement, so make sure to take that into account when investing this money. No gambling it on stocks
that random YouTubers are promoting. I think the two or three fund portfolio is perfect for your Roth IRA, which you can learn more about
in these videos to your left. There's a bunch of free stocks and resources down in
the description below to help with all of your personal finance and investing needs. I'll see you in the next one, friends, go..

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401K to Gold IRA Rollover

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2 Laws for Generating Wealth

Any successful plan to generate and sustain
sufficient wealth must incorporate two very basic rules: 1) Generate Investible Savings. The first step to unlock the path to building
tremendous wealth is not about investing at all. It is about generating Investable assets. For most people this begins by terminating
any expensive debt such as credit card or high interest debt. The reason being that expensive debt increases
one’s expenses and eats into investable resources. Second step for most people is redefining
certain parts of their remaining income as compulsory payments that must be done. That payment is, in fact, the first step of
savings for investing. The third step for most people is to invest
time and entrepreneurial energy to increase their gross income. Getting a better job, a promotion, a new skill
or starting a business that can generate profits disconnected from your immediate personal
labor resources. The fourth step would be establishing some
kind of an emergency fund and getting sufficient insurance to cover yourself against unpredicted
expenses. When the four steps are done, you can start
generating sufficient investable assets that can be put to work growing over a minimal
period of five years.

When this is done, you can proceed to the
next rule. 2) Invest investable savings into exponentially
growing assets, growing for many years while limiting the taxes you pay. Once you generate investable assets and are
ready to put them to work, comes the next tough question: Where should I deploy my investable
assets to maximize my investment and to generate more wealth? You should know that any and all investable
assets you will ever encounter can belong to one or another of these two categories:
Exponentially Growing Assets or Regular Growth Assets.

If you ever hope to generate sufficient wealth
from your investable assets, you must learn how to separate your exponential growing assets
from your regular growth assets and then make sure you are sufficiently exposed to the exponentially
growing asset class. Exponentially growing assets are a rare creature
few understand, even among seasoned investors. There is a set of strict rules to become eligible
for the coveted title: A) At their very core, they must yield very
high returns on internally invested resources and expenses – such as inventory, labor, plant
& factory or R&D; What sets exponentially growing assets apart
from any and all investable assets is their ability to make a large profit on a small
base of required resources. The more expenses and investments one needs
to make a profit, the less profit is left to increase the value of the asset itself. B) They must have sufficiently large market opportunities
ahead of them to enable many years of sales growth displaying high returns on invested
resources; While many possible assets can generate high
rate of return, exponentially growing assets are not a one-off occurrence or limited activity
and must be able to maintain their course of growth over many years to build sufficient
appreciation for their owners.

C) They must provide extensive internal reinvestment
opportunities to use profits at similarly high returns To really become an exponentially growing
asset capable of building imaginary amounts of wealth, the asset must provide managers
the ability to use the rivers of cash generated regularly from the asset in a similar high
rate of return. When these criteria aren’t met, owners soon
realize the resulting rivers of profits do not grow at a high rate and the growth in
wealth soon slows down due to the ever-growing profits invested in lower rate growing assets.

D) They must be led by honest, high integrity,
talented managers, who are actually risking their own wealth alongside their investors. For these executives, a small increase in
the share price will generate much greater wealth than any increase to their paycheck. Executives of public companies have the ability
to loot the company’s coffers or engage in wealth destruction in an infinity of ways. To avoid that, check to see how large your
CEO’s stake in the company stock is before choosing any investment.

As long as the company still embodies the
4 rules that we covered here, you stay invested; this is the one last requirement when investing
in exponentially growing assets. ALL exponentially growing assets see their
stock price cut in half several times during the decades, usually due to different parameters
that don’t reflect the actual company value. Holding these assets through turbulences,
and even adding to them, requires temperament and familiar understanding of the business,
which results in the conviction to stay the course..

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Retire Wealthy Home

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Dave Ramsey’s Retirement Planning Advice Is Flawed: Here is How

Dave Ramsey is fantastic if you are needing some 
simple financial help to get out of debt maybe   you've been irresponsible with your money you've 
racked up toxic Consumer Debt and you're looking   to implement some basic strategies to eliminate 
that debt and to create new habits for yourself   when it comes to your money Dave has impacted 
millions of people when it comes to getting out   of debt when it comes to understanding money on a 
very basic level uh in a better way the challenge   is what has happened is Dave has helped millions 
of people get out of debt and in that process he's   built a lot of trust up with that people and so 
then therefore they start listening to him for   retirement advice for planning for the retirement 
future and in this video what I'm going to do is   I'm going to cover the flaw the major flaw that 
is in Dave Ramsey's retirement strategies I'm   not gonna argue whether he's right or wrong 
about returns but I am going to point out the   massive flaw that most people are missing that 
he never talks about can't wait to get into it   if you haven't already make sure you subscribe and 
hit the Bell that way you're notified every time   I launch a new video Let's Go hey what's going 
on cash flow hackers it's Chris with life 180.   if you've been watching this channel a while you 
know how I feel about Dave Ramsey um but I want   to kind of take the conversation about Dave to 
a little bit of a different level in this video   um here's the deal Dave is really good when it 
helps you when it comes to helping you get out   of debt but his advice on retirement planning 
is is absolutely in my opinion atrocious one of   the biggest challenges that I have about Dave and 
his strategies is that he's been singing the same   song for 30 years right he has not changed his 
philosophies his strategies he hasn't really even   changed the numbers that he uses when it comes to 
retirement planning and the expectations that you   should have around your entire your retirement 
planning even though the economic environment   has changed metamorphically right so if you 
understand that there are variables that impact   your money and impact what you can expect in 
retirement you have to understand that there are   no simple rules that Dave tries to tell you like 
Dave tries to tell you to follow to execute now   I will say um that you know the advice Dave gives 
is like it's better than nothing like that I will   say it's better than doing nothing and it's better 
than what most people do but I also believe that   it's it's a problem that if you follow his advice 
expecting a certain result and then you get to the   end of the rainbow and there's no pot of gold and 
you're actually not anywhere near you where you   thought you'd be that's going to be a problem once 
again we're not talking about the debt elimination   stuff we're talking about which by the way is a 
phenomenal thing to understand that and get out   of debt like so from that perspective I applaud 
him now moving forward when we're talking about   wealth creation that's where he falls down when 
it comes to retirement planning what I did is I   built a spreadsheet because I think numbers say 
a million words spreadsheet you know we can go   through this and what I'm going to do is I'm going 
to share this so here's what I wanted to do here   I wanted to take a look at a household income 
of about a hundred thousand dollars in today's   money I want to save 15 of that income annually 
I'm going to assume an expected return of 10 per   year okay so what this does is like Dave is going 
to sit here and talk about the fact that you need   to save money based on retirement you need to to 
Target retirement account values based on your   hundred thousand dollars a year of income the 
challenge is Dave doesn't take into this into   account when he's ever talking about it I don't 
know why either I don't know why if he if he   thinks people just aren't smart enough to figure 
it out but to me this is just basic Financial   stuff that you need to know the understanding 
of you need to understand to be able to make an   educated decision if you don't understand how in 
inflation impacts your financial needs long term   you're never going to be able to make a good 
financial decision and especially that we're   in this environment right now where inflation is 
4.9 percent last year it was over nine percent   long term since 1971 inflation has been over 
four percent actually nearing four and a half   percent so like from that perspective looking at 
it from a long-term historical average this 4.9   inflation environment that we're in right now that 
everybody's freaking out about is not even high   it's just a little bit above average now a lot of 
people would argue that inflation is actually way   worse than what we're talking about right now 
because the actual impact on the calculation of   inflation uh the the impact is is much greater and 
worse on individual households uh than what the   calculation says because they've actually changed 
the calculation over the past 40 years on how they   determine the inflation numbers which to me is 
Criminal on its own but here's the deal we have uh   we have the hundred thousand dollars of income so 
what I have over here is I have um the retirement   account balance needed to live with a four percent 
rule so if you don't know what the four percent   rule is it's the rule of thumb that says you can 
distribute four percent of your retirement account   value and not run a significant risk of running 
out of money during your lifetime so that is like   the safe distribution calculation expectation so 
what this is showing is that if you had a hundred   thousand dollars of income you need 2.6 million 
dollars um actually it's a hundred four thousand I   didn't do it for year one if you get to year two 
and um you know your real need on four percent   inflation is going to be a hundred four thousand 
because your cost of living with inflation going   up it means you're going to need more money 
it needs your hundred four thousand dollars   next year with four percent inflation is gonna 
feel like a hundred thousand dollars of income   Fields today the challenge is household income 
historically is only going up in about three   percent so it's lagging actual inflation and this 
is why the middle class and the poor are getting   poor and there's this growing divide between the 
wealthy and the middle class it's not so much   other economic policies even though that has a 
play with it long-term inflation is the greatest   tax that is hidden to the American population and 
it has a hugely negative impact uh on the middle   class and lower class the most right so ultimately 
this column is what I would call your freedom   number your freedom number is simply the amount 
of money that you need in an account to be able   to retire to be able to be completely financially 
free and so right now use using traditional four   percent rule methodology and now I'm not taking 
into account Social Security or pension or   anything of that nature so if in fact you did 
have a pension if in fact you want to lean on   social security for any reason you'd have to look 
at your calculation and reduce those off of this   number and then you divide that by four percent 
and that will give you uh this number so if you   said let's say you had fifty four thousand dollars 
of pension and social security you'd subtract that   out that'd be fifty thousand divided by uh divided 
by the uh four percent and that would get you what   your uh Freedom number would be it would tell you 
how much money you need in that account to be able   to kick off passive income for you for the rest 
of your life now here's the challenge as I said   household income is only going up at three percent 
and Dave is saying hey you need to save 15 even if   we earn 10 which is by the way wildly unrealistic 
right I'm showing this at at 10 and it shows you   at 6.561 million here but really that's because 
of the fact that it's assuming that you're going   to have a 281 thousand dollar uh need for annual 
income now here's the deal your income is going   up at three percent per year that 283 35 years 
from now because I'm assuming it's a 35 year old   retiring at 65.

Dave doesn't talk about the fact 
that if you earn 100 Grand right now you're going   to need 281 to be able to maintain your standard 
of living that's not 281 000 in today's money   that's 281 000 in future money right I just did 
a video the other day talking about uh inflation   and the inflation crisis and ultimately how that's 
going to impact you um and and how that's like the   history of this inflation and and where it looks 
what it looks like moving forward into the future   um but this 281 by the way is assuming only 
a three percent increase at a four percent   historical average of inflation if we look at 
it that way you're going to actually need 394   000 and if you back that out you're going to need 
9 million 865 000 and the problem is all of your   Social Security cost of living adjustments cost 
of living increases they don't keep up with the   actual rate of inflation so the need for you 
to take more responsibility for your retirement   planning is becoming greater and greater and 
greater and as as inflation keeps going up this is   a way if you think about it from a social security 
perspective this is a way that the government's   able to kind of save Social Security if they 
can inflate the currency of four percent and   devalue the currency but then only give you cost 
of living adjustments at two percent that means   they're recapturing that money and saving the 
program simply by the way they're doing that but   ultimately they're stealing that money from you 
through a hidden tax the problem is Dave doesn't   talk about all this and what he does is he talks 
about your need for this money he talks about   saving a million dollars and I got news for you 
you could save three million dollars and if you   get to uh retirement and you have three million 
dollars but you need to live on 281 000 a year   you are going to be up the creek without a paddle 
you're not going to be prepared and you're not   going to be in a position um you know ultimately 
where you're you know going to be able to uh   have a a solid situation you know that's that's 
really what it comes down to you're not going   to have any kind of predictable income you're not 
going to have any stability uh you know and you're   ultimately going to have a lot of risk especially 
when it comes to Market risk sequence of return   risk and and just Market volatility risk when 
it comes to your retirement if you if you follow   his plan you're going to be under saved when it 
comes to retirement simply because you didn't give   enough credibility to the impact that inflation 
is going to have on your future needs because   think about it this way everything I just showed 
you was a 10 assumption I could show you a lot of   ways that 10 is completely unrealistic especially 
when you talk about actual real returns I would   say six to eight percent is is the more realistic 
expectation and even then there's some risk   involved right so if we if we back that out what 
what that would look like at even eight percent   which is I think the more I guess traditional 
method that most financial advisors would say   you could get from a long-term perspective if 
you look at eight percent you're only going to   have just over four million dollars that's about 
at retirement 35 years from now for a 30 year old   right when you hit 65 so in that scenario you're 
still looking at only accumulating about half of   the money that you're going to need just to 
maintain your standard of living I don't care   how much you have in Social Security or pension 
it's probably not going to make up that Gap   and you're going to have to take a reduction in 
standard of living even if you follow his advice   and have no car payment and have no mortgage or 
anything like that it that that doesn't matter   that that's not gonna make up for the Gap that in 
inflation has caused for a problem for you and so   that's something that you need to consider so my 
encouragement to you is to go through your plan   figure out what inflation is going to do to your 
retirement planning needs and if you want help   with this I've got a team I've got a certified 
financial planner on the team that's happy to walk   through this give you a consultation walk through 
your needs walk through your current plan and and   give you an analysis and an evaluation on what you 
need to do moving forward to reach your goals on   a predictable basis one of the things I always 
ask I always ask people four questions first and   foremost doing what you're currently doing do you 
know what rate of return your money needs to earn   to be able to retire when you want and guarantee 
your standard of living for the rest of your life   if you don't know the answer to that question then 
everything else is going to blow up you can't plan   accordingly if you don't know the answer to 
that question second question is if you if you   don't know that number the question is do you know 
how much more money you have to save to be able   to retire at your desired standard of living and 
be able to retire when you want and if you don't   know the answer to that which most people don't 
I've literally met one person in my life that   actually knew those numbers ahead of time then 
you start backing it out and go okay how much   longer are you going to have to work if you get 
to retirement age and you haven't met that and you   still need to work well a lot of people they have 
to work an extra decade just to make it make ends   meet right people are thinking they're going to be 
able to retire at 65 but they have to work till 75   or 77 or 78 it's it's really just a sad situation 
but then the challenges our health a lot of times   sometimes sadly unfortunately fails on us we don't 
when you hit 65 there's no there's no promises   there's no guarantees heck there's no guarantees 
anyway but especially when you hit 65 our health   starts to fail like and for most Americans most 
people in this world Health starts to decline at   least and there's start to be different needs our 
bodies break down maybe your body isn't going to   be as capable of doing the job that you did for 
all those years to earn your income and so now   you have to start being like even if I wanted to 
keep working what is my real earning potential am   I really going to keep being able to do that or 
if I get sick what kind of reduction in standard   of living am I going to have to take just to be 
able to last the rest of my life and not run out   of money right and so these are the things that 
you need to consider if you haven't already like   I would encourage you to really do a deep dive 
because my favorite favorite quote in the world   I think and it's kind of tongue-in-cheek but just 
because the ostrich buries his head in the sand   doesn't mean the Lion's Den or plans have changed 
right this this is your problem this retirement   thing is a real problem it's a it's a thing that 
you need to figure out a solution to and you need   to create a plan for as good as Dave is at helping 
you get out of debt he's not great at helping   you plan for your future um and and his his 
information while it seems great because it's kind   of geared towards the masses it's actually in my 
opinion it's it's super detrimental to most people   that are listening to them because you're going to 
get to the end of the rainbow there's a going to   be no pot of gold you're going to find out you got 
to work longer if you're healthy enough to do so   or you're going to have to reduce your standard 
of living because you didn't take some of these   variables into consideration so anyway hopefully 
you found value in that if you did please like it   share it get it out there to people subscribe 
hit the Bell that way you're notified every   time I launch a new video until next time have a 
blessed inspirational day we'll talk soon see you

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Retirement Planning FACTORS | Age and Income

what to look for when selecting the right 
retirement plan so age is a big factor when   it comes to deciding which plan is right for you 
if you're offered a pension that's fantastic not   many companies do offer those nowadays however 
if you have the benefit of getting one then yes   take it but I also think you should also have a 
retirement plan in addition to your pension just   to diversify your savings another situation to 
consider is your financial situation so someone   with a higher income level is most likely going 
to want to prefer choosing their own retirement   plan because then they're going to be able to 
not only write off those contributions but also   distribute it later in life so it maximizes their 
potential to not incur penalties or other taxable   income kind of situations essentially the more 
money you make you're looking for more write-offs   you're looking to claim less you're looking to 
you know have security but you got to be a little   more deaf and clever in how you're taking your 
distributions so to not trigger taxable events

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Dave Ramsey’s Retirement Planning Advice Is Flawed: Here is How

Dave Ramsey is fantastic if you are needing some 
simple financial help to get out of debt maybe   you've been irresponsible with your money you've 
racked up toxic Consumer Debt and you're looking   to implement some basic strategies to eliminate 
that debt and to create new habits for yourself   when it comes to your money Dave has impacted 
millions of people when it comes to getting out   of debt when it comes to understanding money on a 
very basic level uh in a better way the challenge   is what has happened is Dave has helped millions 
of people get out of debt and in that process he's   built a lot of trust up with that people and so 
then therefore they start listening to him for   retirement advice for planning for the retirement 
future and in this video what I'm going to do is   I'm going to cover the flaw the major flaw that 
is in Dave Ramsey's retirement strategies I'm   not gonna argue whether he's right or wrong 
about returns but I am going to point out the   massive flaw that most people are missing that 
he never talks about can't wait to get into it   if you haven't already make sure you subscribe and 
hit the Bell that way you're notified every time   I launch a new video Let's Go hey what's going 
on cash flow hackers it's Chris with life 180.   if you've been watching this channel a while you 
know how I feel about Dave Ramsey um but I want   to kind of take the conversation about Dave to 
a little bit of a different level in this video   um here's the deal Dave is really good when it 
helps you when it comes to helping you get out   of debt but his advice on retirement planning 
is is absolutely in my opinion atrocious one of   the biggest challenges that I have about Dave and 
his strategies is that he's been singing the same   song for 30 years right he has not changed his 
philosophies his strategies he hasn't really even   changed the numbers that he uses when it comes to 
retirement planning and the expectations that you   should have around your entire your retirement 
planning even though the economic environment   has changed metamorphically right so if you 
understand that there are variables that impact   your money and impact what you can expect in 
retirement you have to understand that there are   no simple rules that Dave tries to tell you like 
Dave tries to tell you to follow to execute now   I will say um that you know the advice Dave gives 
is like it's better than nothing like that I will   say it's better than doing nothing and it's better 
than what most people do but I also believe that   it's it's a problem that if you follow his advice 
expecting a certain result and then you get to the   end of the rainbow and there's no pot of gold and 
you're actually not anywhere near you where you   thought you'd be that's going to be a problem once 
again we're not talking about the debt elimination   stuff we're talking about which by the way is a 
phenomenal thing to understand that and get out   of debt like so from that perspective I applaud 
him now moving forward when we're talking about   wealth creation that's where he falls down when 
it comes to retirement planning what I did is I   built a spreadsheet because I think numbers say 
a million words spreadsheet you know we can go   through this and what I'm going to do is I'm going 
to share this so here's what I wanted to do here   I wanted to take a look at a household income 
of about a hundred thousand dollars in today's   money I want to save 15 of that income annually 
I'm going to assume an expected return of 10 per   year okay so what this does is like Dave is going 
to sit here and talk about the fact that you need   to save money based on retirement you need to to 
Target retirement account values based on your   hundred thousand dollars a year of income the 
challenge is Dave doesn't take into this into   account when he's ever talking about it I don't 
know why either I don't know why if he if he   thinks people just aren't smart enough to figure 
it out but to me this is just basic Financial   stuff that you need to know the understanding 
of you need to understand to be able to make an   educated decision if you don't understand how in 
inflation impacts your financial needs long term   you're never going to be able to make a good 
financial decision and especially that we're   in this environment right now where inflation is 
4.9 percent last year it was over nine percent   long term since 1971 inflation has been over 
four percent actually nearing four and a half   percent so like from that perspective looking at 
it from a long-term historical average this 4.9   inflation environment that we're in right now that 
everybody's freaking out about is not even high   it's just a little bit above average now a lot of 
people would argue that inflation is actually way   worse than what we're talking about right now 
because the actual impact on the calculation of   inflation uh the the impact is is much greater and 
worse on individual households uh than what the   calculation says because they've actually changed 
the calculation over the past 40 years on how they   determine the inflation numbers which to me is 
Criminal on its own but here's the deal we have uh   we have the hundred thousand dollars of income so 
what I have over here is I have um the retirement   account balance needed to live with a four percent 
rule so if you don't know what the four percent   rule is it's the rule of thumb that says you can 
distribute four percent of your retirement account   value and not run a significant risk of running 
out of money during your lifetime so that is like   the safe distribution calculation expectation so 
what this is showing is that if you had a hundred   thousand dollars of income you need 2.6 million 
dollars um actually it's a hundred four thousand I   didn't do it for year one if you get to year two 
and um you know your real need on four percent   inflation is going to be a hundred four thousand 
because your cost of living with inflation going   up it means you're going to need more money 
it needs your hundred four thousand dollars   next year with four percent inflation is gonna 
feel like a hundred thousand dollars of income   Fields today the challenge is household income 
historically is only going up in about three   percent so it's lagging actual inflation and this 
is why the middle class and the poor are getting   poor and there's this growing divide between the 
wealthy and the middle class it's not so much   other economic policies even though that has a 
play with it long-term inflation is the greatest   tax that is hidden to the American population and 
it has a hugely negative impact uh on the middle   class and lower class the most right so ultimately 
this column is what I would call your freedom   number your freedom number is simply the amount 
of money that you need in an account to be able   to retire to be able to be completely financially 
free and so right now use using traditional four   percent rule methodology and now I'm not taking 
into account Social Security or pension or   anything of that nature so if in fact you did 
have a pension if in fact you want to lean on   social security for any reason you'd have to look 
at your calculation and reduce those off of this   number and then you divide that by four percent 
and that will give you uh this number so if you   said let's say you had fifty four thousand dollars 
of pension and social security you'd subtract that   out that'd be fifty thousand divided by uh divided 
by the uh four percent and that would get you what   your uh Freedom number would be it would tell you 
how much money you need in that account to be able   to kick off passive income for you for the rest 
of your life now here's the challenge as I said   household income is only going up at three percent 
and Dave is saying hey you need to save 15 even if   we earn 10 which is by the way wildly unrealistic 
right I'm showing this at at 10 and it shows you   at 6.561 million here but really that's because 
of the fact that it's assuming that you're going   to have a 281 thousand dollar uh need for annual 
income now here's the deal your income is going   up at three percent per year that 283 35 years 
from now because I'm assuming it's a 35 year old   retiring at 65.

Dave doesn't talk about the fact 
that if you earn 100 Grand right now you're going   to need 281 to be able to maintain your standard 
of living that's not 281 000 in today's money   that's 281 000 in future money right I just did 
a video the other day talking about uh inflation   and the inflation crisis and ultimately how that's 
going to impact you um and and how that's like the   history of this inflation and and where it looks 
what it looks like moving forward into the future   um but this 281 by the way is assuming only 
a three percent increase at a four percent   historical average of inflation if we look at 
it that way you're going to actually need 394   000 and if you back that out you're going to need 
9 million 865 000 and the problem is all of your   Social Security cost of living adjustments cost 
of living increases they don't keep up with the   actual rate of inflation so the need for you 
to take more responsibility for your retirement   planning is becoming greater and greater and 
greater and as as inflation keeps going up this is   a way if you think about it from a social security 
perspective this is a way that the government's   able to kind of save Social Security if they 
can inflate the currency of four percent and   devalue the currency but then only give you cost 
of living adjustments at two percent that means   they're recapturing that money and saving the 
program simply by the way they're doing that but   ultimately they're stealing that money from you 
through a hidden tax the problem is Dave doesn't   talk about all this and what he does is he talks 
about your need for this money he talks about   saving a million dollars and I got news for you 
you could save three million dollars and if you   get to uh retirement and you have three million 
dollars but you need to live on 281 000 a year   you are going to be up the creek without a paddle 
you're not going to be prepared and you're not   going to be in a position um you know ultimately 
where you're you know going to be able to uh   have a a solid situation you know that's that's 
really what it comes down to you're not going   to have any kind of predictable income you're not 
going to have any stability uh you know and you're   ultimately going to have a lot of risk especially 
when it comes to Market risk sequence of return   risk and and just Market volatility risk when 
it comes to your retirement if you if you follow   his plan you're going to be under saved when it 
comes to retirement simply because you didn't give   enough credibility to the impact that inflation 
is going to have on your future needs because   think about it this way everything I just showed 
you was a 10 assumption I could show you a lot of   ways that 10 is completely unrealistic especially 
when you talk about actual real returns I would   say six to eight percent is is the more realistic 
expectation and even then there's some risk   involved right so if we if we back that out what 
what that would look like at even eight percent   which is I think the more I guess traditional 
method that most financial advisors would say   you could get from a long-term perspective if 
you look at eight percent you're only going to   have just over four million dollars that's about 
at retirement 35 years from now for a 30 year old   right when you hit 65 so in that scenario you're 
still looking at only accumulating about half of   the money that you're going to need just to 
maintain your standard of living I don't care   how much you have in Social Security or pension 
it's probably not going to make up that Gap   and you're going to have to take a reduction in 
standard of living even if you follow his advice   and have no car payment and have no mortgage or 
anything like that it that that doesn't matter   that that's not gonna make up for the Gap that in 
inflation has caused for a problem for you and so   that's something that you need to consider so my 
encouragement to you is to go through your plan   figure out what inflation is going to do to your 
retirement planning needs and if you want help   with this I've got a team I've got a certified 
financial planner on the team that's happy to walk   through this give you a consultation walk through 
your needs walk through your current plan and and   give you an analysis and an evaluation on what you 
need to do moving forward to reach your goals on   a predictable basis one of the things I always 
ask I always ask people four questions first and   foremost doing what you're currently doing do you 
know what rate of return your money needs to earn   to be able to retire when you want and guarantee 
your standard of living for the rest of your life   if you don't know the answer to that question then 
everything else is going to blow up you can't plan   accordingly if you don't know the answer to 
that question second question is if you if you   don't know that number the question is do you know 
how much more money you have to save to be able   to retire at your desired standard of living and 
be able to retire when you want and if you don't   know the answer to that which most people don't 
I've literally met one person in my life that   actually knew those numbers ahead of time then 
you start backing it out and go okay how much   longer are you going to have to work if you get 
to retirement age and you haven't met that and you   still need to work well a lot of people they have 
to work an extra decade just to make it make ends   meet right people are thinking they're going to be 
able to retire at 65 but they have to work till 75   or 77 or 78 it's it's really just a sad situation 
but then the challenges our health a lot of times   sometimes sadly unfortunately fails on us we don't 
when you hit 65 there's no there's no promises   there's no guarantees heck there's no guarantees 
anyway but especially when you hit 65 our health   starts to fail like and for most Americans most 
people in this world Health starts to decline at   least and there's start to be different needs our 
bodies break down maybe your body isn't going to   be as capable of doing the job that you did for 
all those years to earn your income and so now   you have to start being like even if I wanted to 
keep working what is my real earning potential am   I really going to keep being able to do that or 
if I get sick what kind of reduction in standard   of living am I going to have to take just to be 
able to last the rest of my life and not run out   of money right and so these are the things that 
you need to consider if you haven't already like   I would encourage you to really do a deep dive 
because my favorite favorite quote in the world   I think and it's kind of tongue-in-cheek but just 
because the ostrich buries his head in the sand   doesn't mean the Lion's Den or plans have changed 
right this this is your problem this retirement   thing is a real problem it's a it's a thing that 
you need to figure out a solution to and you need   to create a plan for as good as Dave is at helping 
you get out of debt he's not great at helping   you plan for your future um and and his his 
information while it seems great because it's kind   of geared towards the masses it's actually in my 
opinion it's it's super detrimental to most people   that are listening to them because you're going to 
get to the end of the rainbow there's a going to   be no pot of gold you're going to find out you got 
to work longer if you're healthy enough to do so   or you're going to have to reduce your standard 
of living because you didn't take some of these   variables into consideration so anyway hopefully 
you found value in that if you did please like it   share it get it out there to people subscribe 
hit the Bell that way you're notified every   time I launch a new video until next time have a 
blessed inspirational day we'll talk soon see you

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Is gold a good investment in 2023? – Robert Kiyosaki, Jim Clark, Charles Goyette

(upbeat music) – [Narrator] This is "The
Rich Dad Radio Show." The good news and bad news about money. Here's Robert Kiyosaki. – Hello, hello, hello, Robert Kiyosaki, "The Rich Dad Radio Show." The good news and bad
news about this here. This is cash, and this trash. So today we're going to be
talking about the hottest subject on the market today, and it's not real estate, what it is here is this is gold, and this is silver, and of course there's Bitcoin.

So those are the three things. And the reason they're the
hottest subjects on the earth right now is because our money is fake. So this is one of my
favorite books here, "Fake." I'll tell you a quick story
before we get into why gold, silver, and Bitcoin is,
that I was at Safeway, and I'm kind of a guru at
the salad counter at Safeway.

(Robert laughing)
All the women were coming up to me going, "Hey,
what should we invest in? What should we invest in?" And I just happened to be
having in my pocket here, this is a pre '64 US quarter, and it's given to you by
my friend, Dana Samuelson, he's in Austin, Texas. He is American Gold
Exchange in Austin, Texas. Dana Samuelson. So he knows I'm a silver nut. So this is a pre '64, and
pre '64 means it's silver. After '64, it became fake money. It became this here. So I held this up here to the ladies, they want the hottest tip,
and I said, "Buy this here." They went, "Oh!" A quarter? I can afford a quarter." I said, "Yeah, but I'll
charge you $3 for it." And you should have seen their brains, the salad was flying all over the place. (all laughing) (Robert speaking gibberish) I said, "Okay, I'll tell you what, $2." (Robert yelling) They were screaming,
not screaming, but just, "Why would I pay you $2 for a quarter?" And I said, "But this is pre '64." They just could not figure it out.

Now, that's the lesson of today, is that people don't know
that our money is fake. And that's why Rich Dad
exists and all this. But the sad thing about it is, is that AARP turned on my article because I wrote a story of
my mother, I used to save real quarters, cause when
I was 17 years old, in '64, I saw the quarter go to copper.

It was fake. It was an alloy. So I started collecting
dimes and then quarters and half dollars. I had this big bag of real silver. And my mother says, "What are you doing?" I said, "This is real money." So this is, '64, '65, I
go to school in New York. '66, I come home, my mother spent it all. (all laughing) And so I wrote the story for
AARP, they turned it down. I said, "The lesson is
poor people are poor cause they don't know fake money." They don't know the
difference between real money and fake money. So this is a very important lesson here. I have some two friends here from years, and like I said, Dana Samuelson
of American Gold Exchange in Austin, Texas. This is a special category of silver.

It's called numismatic. And numismatic means
collectible and antique. And the reason I respect
Dana is because he was head of the American Numismatics. So I don't buy numismatic, I
don't buy collectible coins, I buy real gold, silver. But if I want numismatic,
like an antique Dodge or something, whatever it is,
if I want an antique coin, I see Dana because there's
a lot of fakes out there. A lot of fake coins. So you got to be very careful today.

But like I said, this
is the hottest subject. I have two great friends here. So Jim, and this is Charles Goyette here. This is his book here, "Red
and Blue and Broke All Over." (men chuckling) So Jim, how long have you
been in this business of gold? – 50 Years. – 50 Years.
– Yeah. – Our time is coming
on this one, isn't it? – Well, I thought it was
coming in 1973 when I got in the business. And it was just a year
and a half or so after Nixon had removed the gold and we got everyone off the gold standard. – The dollar was backed by this here. This is real gold. So in '71, this was pulled out too, right? – [Jim] Right. – Because you just print
as much as you like. – Well it was no longer
backed by anything. It was a Federal Reserve
note, which is no more federal than Federal Express. And we were required
to take that as money, whether we liked it or not. – Right. Right. Another thing too, I
was in Vietnam in '70. '71, I was on my way
over, '72 I was there, and '73 I returned and I
bought my first gold coin.

It was a South African Krugerrand. And the Vietnamese woman, gold was $35 for years, and then in '71 it floated
to about 50, let's say. And so I thought, "Well,
I'll go talk to her." She was behind enemy lines, I
flew my helicopter in there, tried to negotiate with her. I said, "Look, I'll give you 40 of
these for one of these. And she's going, "Spot." I go, "Let me say it again. 40 of these. for one of these," she goes, "Spot." I said, "What the hell
is she talking about?" Well, she was saying spot that day was 50. And all of a sudden here, I'm
a college graduate, hopefully, with my other college graduate,
two pilots standing there going, "We don't know
shit about money, do we?" So spot meant that on
that day, it was 50 bucks.

And I thought because she
was behind enemy lines, I could get it for 40. No such deal. Gold is gold. Spot is spot. Silver is silver. This is real money. So Mr. Goyette, Charles,
why did you write this? Tell us something about your background, why did you write this book here? – Well, one thing is Jim and I
were in the business together a very long time ago that
he was talking about. But you just reminded me about spot. I remember seeing the
"National Geographic" special, this is back in the 70s,
and they went to these guys, these kind of third worlders
in the Amazon rainforest, way deep in the jungle, and these people didn't have any clothes, didn't have any electricity, but they were panning for gold there.

And the camera crew came up
and tried to buy their gold and they knew what the
London goldfish was that day. (all laughing) They totally knew what the
world price of gold was, spot price of gold,
cause it's international, it's all over the world, and it's a real price
for real money, isn't it? – Yeah, the sad thing about
it is I think Americans are the least to know about money. Because we have the Federal Reserve note. I'll tell you one last
story; I was in Peru, I bought a gold mine in Peru. There's no rain, there's just baron hills, mountains up in the Andes. And I see these little
holes up there, I go, "What the hell's that?" And my little Inca guide says, "We've been drilling gold
here for thousands of years, asshole." (all laughing) I said, "I'm not the first guy up here?" "No, you're not the first guy up here." "My great, great, great,
great, great, great grandfathers were yanking
the stuff out for years." And Bizarro came to Peru
and killed them all, took their gold.

– [Charles] Stole their gold. – And so that's why the
Spanish became the empire at the time. Someone from Spain, England, America, America's gone now. So that's what we're
here to talk about today. And we're old enough, the
three of us, to understand that this here is real and this here is fake. But most people would rather have this. This is the problem. – Robert, I saw one of those
YouTube videos where the guys on the boardwalk in Santa
Monica, it's kind of like jaywalking, like what's
the name of the moon? But he's walking around
with a chocolate bar and a silver coin, and he says to the people, he said, "Would you rather have
this chocolate bar," or I think it was a silver bar. – [Jim] A silver bar. It was Mark Dice.

– Yeah. And the people go, "Mm, I'll
take that chocolate bar." (all laughing) So they get a $2 chocolate bar, or a- – It was a 10 ounce silver
bar, it was about $300. And they'd rather have the chocolate bar than the silver bar.
– [Charles] They know no better, it's Jaywalking America. – And I'll say this again, it's the most important lesson: poor people don't know the
difference between real money and fake money.

And that is what it comes down to. So it was in '71, this used
to be a silver certificate, now it's a Federal Reserve IOU. It used to be backed by gold up to, no, this was '67, '64, excuse me, it was silver. And then in '71, Nixon
took the gold out of it. Johnson took this out of
the silver certificate. – Yeah, I remember I was
telling you that story the other night. I remember in 1964 where
we're sitting around the TV, Johnson came on and said,
"Silver has become too valuable to be used as money." And just as I'm sitting here, my dad said, "That son of a bitch.

They're going to take the silver out and they're going to leave
us this garbage coins." And he didn't really
understand it, but he got it. And from that point on,
he saved silver coins. He had about $8,000 worth by
the time he cashed them in in 1980. – Yeah. And I was in South Carolina
where I have a home, and this guy said that his
father ran the theater, and his father said, "There's
just yanking out all the silver coins." The lesson again, is poor
people don't know the difference between real money and fake money. And that's why in "Rich
Dad, Poor Dad" I said, "The rich don't work for
money because it's fake." So the reason I like to have
Jim here and Charles is because this stuff is getting
harder to find right now.

And I was panicking cause I
deal with a lot of guys who have gold and silver. So I called my friends up,
"We cannot get silver." I went, "What?" This is about what,
seven, eight months ago, we couldn't get silver. So you guys are Republic
Monetary Exchange. – [Jim] Yeah.
– Yeah. On Camelback. And I called these guys,
they said, "We got plenty." – Jim has been very,
very good over the years at making sure that the
inventories are high. He could see when these
runs are starting and stuff and the premiums are
starting to go up and stuff. And he's always put his clients first. He makes sure, we're going
to commit a lot of capital to make sure that our
clients can come in the door and get their gold and silver.

The worst thing in the world
is these companies that say, "Well, give us your money now and then we're going to deliver
your gold or we'll send you your silver in six months or something." Don't do that! Don't do that. So Jim's just really
created a name for himself in his ability to always
deliver to his clients. – Well I've always stayed ahead
of the curve, that you can anticipate needs after
50 years in the business. – Well, not everybody can,
because I was panicking, Okay, well step back.
You have the spot price. So let's say today the spot's 20 bucks. There's a premium on top of this coin, or this coin, should I say. What does the spot and the premium mean? – On that particular coin,
it's typically between $4 and $5 an ounce over the spot price. – So spot is the price
all across the world? – Right. And then all of the
products and coins and bars and so forth, they will
be priced accordingly based on the availability, the demand, the cost of refining and
putting them in the coins and shipping and distributor
markup, dealer markup, our markup and all that.

So there's always a premium that you pay to get the finished product. – That's like the tip at
the end of the dinner. (all laughing) – No, it's worse than that. – Yeah! I was watching Fox News
this morning, Fox Business, and they were bitching
about how, she went, where did she go? Oh, she went to the dry cleaners and she charged her, she
put it on a credit card for her dry cleaning; it said, tip 20%.

She goes, "Why do I have to
tip you for my dry cleaning?" (all laughing) People are so desperate to
money because this is fake. It's terrible. – Well, and because they can print it so much that the value
is dropping every day. They print up billions every day. Look at the bills that they
signed of, 1.7 trillion. Where's that money coming from? Well, they've got to print it. Or they've got to create something through a keystroke entry. That means all the rest of
those Federal Reserve notes out there become worth just
that much less everyday.

– Yeah, this is trash. So I'll say it again, the
difference between rich people and poor people; rich people
know the difference between this and this. And so the Republic Monetary Exchange, there's a lot of people out there. Dana Samuelson, my friend,
he's my expert in numismatic. And I was impressed because
you guys had inventory. My other friend, Jerry Williams was out. And I said, "What the
hell?" This is a while ago, "What the hell's going
on?" It was running.

So it must mean there's
something going on because people would rather have this than this now, except for
the ladies at Safeway. (Robert laughing) – But they know now.
(all laughing) – It fried their brains. "Why would I give you $2 for that?" And I said, "That's the
riddle of the day, ladies." We're laughing, we had a great time. But it fried their brains. Said, "What, what, what, what?" And I said, "I have a book here for you, It's called 'Fake.'"
(Robert laughing) And this whole system is fake right now. So we come back, we're going more into how people lie, cheat and steal because anytime there's money,
there's a liar and cheater and stealer around there. I've been saying this for
years, this is God's money. This is fake money.

I like Bitcoin. I call it people's money. Now I don't know much about Bitcoin, but I'm just glad I bought it at six. That's all I know right now. So when we come back with
going more how you can know real money from fake money. Some of the other advantages of right now. I've been saying this for
years, I used to work for Lear, I still have Lear Capital Ads, I said, "Buy silver." And the reason is
everybody can afford this. I think this is about 30 bucks. How much is this today? – Just under $30 for one of those, yeah. – Everybody in the world
can afford 30 bucks. But they'd rather have this.

And that's today's Rich Dad
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The Rich Dad Radio Show." The bad news about fake money.

And again, we're talking
about this stuff is fake and this is real money. We have friends, dear
friends, this is Jim Clark from Republic Monetary
here in Phoenix, Arizona. And Charles Goyette, here's
his book, "Red, White and Blue and Purple All Over." And we we're going broke. And so you guys have been
in the business for a while. I've been in the business
since '72 when I first bought my first gold coin. I still have that gold coin. – [Jim] Wow.
– It's not stored in America though, it's
stored someplace else. – [Charles] Where is that? Oh, you don't have to tell. – I'm going to open my
blabber mouth on TV. (all laughing) That's like my attorney
stands in front of this crowd, he says, "Yeah, I have a lot
of gold, I keep it at home." I said, "Why don't you just
tell everybody where to go? Why not just give them your address too." (all laughing) Attorney's aren't the
brightest guys on earth.

(all laughing) – Well I have strangers that will ask me, "Now, where should I store this?" I said, "I don't know and I don't care." – [Charles] And don't tell me.
– Well don't tell me. So the FBI come, "Did you know?" So Jim, tell us about
what you have right here. You have silver and you have gold. – So I have the kilogram of
silver, which is 32.15 ounces, and then I have a 10 ounce gold bar. And of course, when you
see something that big, how do I know that's real? So we have a device, it's a spectrometer, that we can put, that X-rays the bar. And I've got it all set up. So what I'm going to do
is I'm going to point the device at the silver and I'm going to get a reading. Put it on there maybe
four or five seconds.

It will read right into the bar. It'll come back. And if you can pick that up, right on the screen it says
AG, which is the chemical sign for silver, 99.99% pure. You know that this bar is absolute. We can do the same thing with- – Is there such a thing as fake silver? (crosstalk) Not too long ago, they caught some. – There were some companies
years ago that were making the silver and gold and it
wasn't coming out exactly pure. And what happens then is if
we find that, we just throw it in the melting pot and
then bring it up to pure. Cause you don't want to sell
a bar that's 94%, 95% pure. So it's out there, which
is why we spent $20,000 on this piece of equipment that we can find a counterfeit bar.

If it's not pure gold, we know right then, and this is paid for
itself many times over. Because so many times
somebody will come in and say, "Well hey, I've got this big block of gold and I want to sell it." Okay, let's have a look at it. You go through it, it's pyrite, or it's copper, or it's zinc. – Jim Recer was telling
us, in the New York Bank, he says they found some fake silver. – The bigger the bar, the
better chance that there is. So I'm going to do the
same thing with this gold. Because that's really the valuable. With a $20,000 piece of
metal, you want to make sure that it's what it's supposed to be. Same thing. We come up, AU, gold. 99.99% pure. Which is exactly what it's supposed to be. – So this is January, 2023. What would this cost me, if
I walked into your place, Republic Monetary
Exchange on Camelback Road in Phoenix, Arizona, What would that cost me? – Just over $900 for that. – For that?
– Yeah.

– My God. And how much is this thing here? – That's going to be
around 2,000, over 2,000, 2,050 or more. – This is 2,000, this
is a gold, what is it? – Eagle. American Gold Eagle.
– American Gold Eagle. And that's 900? – Right, that's a kilogram of over. This is going to be close to
$20,000 for this gold bar. – What is that now? – 10 ounces of gold. – [Charles] That feels like
real money doesn't in, Robert? – Can I trade you this for this? (all laughing) – Go get 20,000 more of
those and we'll do it. (all laughing) – You're a little light. (all laughing) – Actually, on that subject,
we were talking about this the other night, Robert,
about cash for gold. I'm one of the few people
who absolutely despise cash for buying gold, and
you'd think just the opposite, that I couldn't wait to get cash. But banks don't want it. Try and deposit $20,000
or $50,000 in cash.

They'll turn you away and
say, "Well, we got to do this, that and the other, and
we've got to file this form and we got to do that." Hey, I would rather have a
bank wire than cash anytime. – Jim's story really
illustrates something with- – Wait. He doesn't want cash. And I thought the reason is
because it might be dirty or it's hot money or whatever it is. It's just a pain in the butt. – Well, it's that, but you know what else? I'm thinking down the road, let's say I acquire $1
million or $2 million in cash that the banks don't want to take.

When this currency is repudiated,
I'm going to be stuck. Just like the people in Germany were twice in the 20th century that they were hauling wheel borrows full of Deutschmarks for a basket of groceries. – Fake money and brought Hitler to power. The the Weimar Republic and
the Reichsmark and all this. Every time there's fake
money, tyrants rise up. Because people know something is wrong. – Yep.

So here we go in this country. – [Robert] Right. – But Jim's attitude now
about cash really illustrates that the government, the
deep state, has won this war without legislation,
without public debate, they have won the war against cash. They've been at war at cash
because it's anonymous, they don't track you,
they can't follow you when you use cash, and
they've won the war. And so, the only alternative
people have to be off the grid, not to be tracked, not to be surveilled, gold and silver. That's it. That's all. – So once again, this is 1964. 1964, I was 17 years old and I
started looking at that thing like this. It was copper. The Romans did the same thing way back in at the end of their empire. So what were they doing when
they put copper in this thing? It's a law called Gresham's Law. What does Gresham's Law mean? – Bad money drives good
money out of circulation.

– So this money went into hiding. So I had bags of it. They said, "Go caddy, take my dollars, go to the
bank and pull out all the real stuff and hide the real stuff." I didn't know what I was
doing. I was 17 years old. Wasn't the brightest kid on the block. But I just knew this was fake. This was fake now. And then I come back
from school a year later, my mother spent it. That was a powerful lesson. AARP turned it down, they said,
"You're cruel to your mom." And I said, "Okay." Anyway, poor people don't
know real money from fake money.

So that's why we have Sara here. So what happened in '71, this became debt. So our company, at Rich Dad,
we encourage people to use debt. This is my other friend here. He's a financial planner who
doesn't recommend the 401k. John McGregor's, this is "The Top 10 Reasons
Why the Rich Go Broke." One of the reasons they go
broke is they have a plan for their money, but they
have no idea what money is. – Well, and I've talked
to people all the time that are multimillionaires,
they sold their business, they did this, that and the other and came into all this cash
that's sitting in the bank and said, "Well, you think
I should buy some gold with some of this?" I said, "Well, you know what they're
doing with the dollar, you know that they keep printing them, they can't print gold.

Now you tell me how much
you can afford to lose of all that money sitting
in the bank, and I would say leave that there and get
the rest of it in gold." It's a bigger risk having paper money. It's depreciating.
– It's a guaranteed loss. – And eventually, these
are going to be worthless. And we're in the 51st year of
fiat money when Nixon closed the gold window. A currency has never lasted
more than 50 years until now. And we're in year 51. How are we any different than
anywhere else in the world? – That's '71- – To 2023.

How are we any different? Look what they've done in Venezuela. They were one of the richest
countries in South America, in actually, the Western hemisphere. Look what they've done to Argentina. Look what they've done in Cuba. Look what they've done in Mexico. Same exact economic principles
that they broke there, we're doing the same things here. – Somebody asked me once, "Charles, how many paper
currencies have gone broke, have gone worthless over time?" And the answer is all of them.
– [Robert] All of them.

And the ones that people still
hold are only on their way. They just haven't arrived at
their final destination yet. – It's like I said, I'm 17
years old in 1964 going, "Something's wrong here." That's Gresham's Law. And I think that's one of the
reasons I'm a rich person, is I know real from fake. And then, so when Nixon
took the dollar off the gold standard in '71, I didn't
really know what that meant. But the first course, I
was in Vietnam in '73, I came back, '74, they made this legal. Remember that? It was illegal. So I had to smuggle
that, I was in Hong Kong, I had to buy my South African
Krugerrand in Hong Kong. I had to smuggle it into the country. Why was that? – It was in '74?
– Yeah.

– Yeah, because it was illegal
to own in bullion form. – Well, in '73 I brought it in. – It was a felony. It was a felony. They could put you in prison
for 10 years and charge you $10,000 fine. They made it a felony for
Americans, free people, to own monetary gold and silver. Or gold anyway. It was a felony. Was it dangerous? Was it going to blow up? Was
it nuclear contamination? Was it going to kill your
neighbors with poison? What was wrong? Well, it was of course,
you know the answer, it's always the same
answer, the government grabs all the gold cause it wants it for itself, so you can't be allowed to have any. It's exactly what they did.

– At that time there were
two very good senators, Steve Sims and Jesse Helms, who introduced the idea of
Americans owning gold because foreigners could own gold
and Americans couldn't. And if there's anything to be
said good about Gerald Ford, it was that he signed the
bill after it passed through both houses to make gold legal to own.

Now unfortunately, at the
time, gold was around $200 an ounce, and over the
next year and a half or so, it dropped to 100. So a lot of the curiosity
of owning gold disappeared. But fast forward to the Jimmy Carter days, 1976, gold went to 100. And by the end of
Carter's term it was 850. And silver went from about
$3 an ounce to $50 an ounce in that four year period. – So during Carter's trend, this was 850? What is this today? – 2,050.

– So why would you save this trash? (Charles laughing) That's what I'm saying here. – It's fake. How about that to sum it up? That's fake. – [Jim] It's a trick. – Another thing I want to
say, cause I'm a history buff, it's about the only subject
I did well in school, the reason he doesn't like the 401k is in 1974 when Ford put us
back on, we could own gold, they put us on the 401k. (indistinct) And today, this is the biggest
reason you want to own gold. Because our pensions, as they
keep raising interest rates, our 401ks are going down. But not only this, my book
wrote with the Ed Siedel, is our pensions are broke. So as the firefighters, police
officers, school teachers, their pensions are gone. So the fed's going to have to print. That's my whole summation. – Well, and what's crazy
about it too is that you get your statement online
every month and it says, "Oh my god, look, I have
$500,000 in my pension plan. Boy, that's going to last
me till the year 2050." It's not going to.

The dollar's not going to
be there, first of all, and the pensions are gone too. But gold will be there forever. – This will be here. This is God's money. We used this as money
for about 5,000 years. But God put it here on the
earth, and that's when I was in the Andes with my old Inca friend, I said, "Geez, look at those holes." He says, "Yeah, we've been
digging longer than you have." And I was in Mongolia, same
thing, there's a place called the Checker Board. They call it the Checker
Board because the Mongolians, this is thousands of years
ago, were digging for gold. Now they didn't have internet,
they didn't have iPhones and all this stuff. Humans intuitively knew to look for gold. That's what blew me away. – Well, and when you think about- – Except for the women at Safeway. They don't know gold from silver. – [Charles] They need a salad bar guru. (Robert laughing) – When you read the stories
about all the Spanish ships that have sunk over the years
coming across the Atlantic, and the explorers go down there, they're not going down there
looking for the currency of the realm of the day and
see if the paper survived; they're going down there
looking for the gold, they're going down there
looking for the silver.

And they find it. And what's amazing is
that if this bar had been in the bottom of the ocean for 500 years, it'll still be in this pristine condition. It doesn't rust. It doesn't erode. It will do the same thing
now 500 years later. And they've brought some
amazing coins that have been in the Spanish ships that
were in pristine condition, that have graded out
un-circulated, like it was the day that it came out of the mint. – What's that joke? Who's the guy in the fed? – [Charles] Ron Paul.
– Ron Paul, he said if a Spanish ship went down with gold, another ship went down with dollars, people would stop diving for dollars.

(all laughing) They still dive for gold. It's kind of a funny thing, but it's sad. But another thing too is I had a pile of extra
silver I bought from you, and I was handing them
on his Christmas gifts. It's $30 let's say. And one woman had four kids. I said, "Give each one of
your children one of them." One silver coin. I said, "It'll there when they
graduate from high school." "No, they'll probably have spend it." I said, "Yeah, they probably will." But that's the problem. I save this. I say in "Rich Dad, Poor
Dad," savers are losers because they save this. If you save this, and if you save this, what is this here? – $30. – Yeah, well what? – Silver, it's a silver round.

Just a generic silver one ounce piece. – It's a buffalo.
– Yeah. I'll call up Jim and
say, "I want buffalos." So he knows what I'm talking about. There's different goofy
kind of coins out there. But I'd rather save this
cause this will be here 10,000 years from now. This won't. You can pass it on from
generation to generation to generation. – I'll be surprised if that
paper dollar is here even 10 years from now. – I doubt it. Yeah. So anyway, we're in very
serious, serious trouble here. And this is the hottest subject going. For years, I've been saying buy silver because everybody can afford silver. When I offer them this
for $3, they went nuts. They went, "Why would I buy that?" Because they'd rather have this. That's the lesson. Final words there, Mr.

Jim. – Well, we sure appreciate
all you do for the freedom movement, Robert. And speaking about gold and
speaking about the fake money that we're passing around, it's a great lesson
for the next generation whether we realize it or not. At our age, and doing all
this for 50 years or more, we've got a great legacy to
pass on to the next generation because they just don't know.

And you are a patriot in the
true sense of the word, sir. Thank you for having us. – Thank you. – Robert, let me ditto that
too, because we're in for some really rough sledding in this country. There's some rough patch of road ahead and it didn't have to happen and
now it's going to happen. And as bad as it's going to be
for the people who understand the lessons that you've been
doing in your educational efforts and teaching them about money, the ones that take action
based on those kinds of recommendations and that
learn about this stuff, they will be so much better off. And the more of them there are
the better off we'll all be because maybe we can have
some kind of commerce still continue when the whole
thing goes topsy-turvy.

So thank you, Robert. – How many of the layoffs
are just starting right now? This is January 2023. – 10,000 at a crack by these companies. 10,000 here, 10,000 there. – [Robert] Because
they're working for this. – Yeah, and this is horrible stuff. These are people that are
living paycheck to paycheck like we've never seen before,
and their personal debt has never been so high as it is right now. – It's a disaster. – And there's now called
the working homeless. They have jobs but they
can't afford to live. – [Charles] Sleeping in their cars. – Yeah. That's because this is fake.
– [Charles] Yep. – Well we have a lot more
information on our website by the way, Robert. – The reason I invited you guys
cause you actually do teach. If you were just promoting your company, you wouldn't be here. So what is a book you have
and what is your website? – Okay, the website is RMEGold.com. – Dot what? Com? – .com, and then my- – I thought you said .gov, I was going, I didn't know you were a fed. (all laughing) – And my book is "Real
Money for Free People, the American Gold Story." – In fact, people that are in
the Phoenix area can stop by, Jim will sign a copy of the
book and give it to him.

But his book is a really good book. And there's a ton of
information on the website too to bring people up to
speed, to learn the lessons that you teach, like
the lessons about fake. And we have a new post
going up, for example, about your book, about pensions. – [Robert] Oh, thank you.
– Cause it's so important right now, especially now the
Congressional Budget Office just announced that Social
Security's finished at 2033. – Yeah. And the reason I wrote this
book was because in '74, that's why McGregor wrote this book here. That was a 401k. But that's when the pension
started getting looted. And now our generation,
the Boomer generation's in serious trouble for retirement. Cause I don't think
it's going to be there. – The American people lost
26% in their 401ks in the last year, through October, so it's very grim. – And that doesn't even
take into consideration the depreciating dollar to go with it too. – So, okay, watch's your website again? – RMEGold.com. – RME.

And then your book here is, Charles Goyette, Red, Blue. – "Red and Blue and Broke All Over: Restoring America's Free Economy." – You're an optimist, aren't you? – My publisher said, "Write
that book about how to put it back together, I said,
"You know they're not going to do that." And they're not, but it's there anyway. – They're going to keep
printing this because this gets more valuable. – We're beyond the point of no return. – [Charles] Yeah. – The sad thing about it is,
as the price of gold goes up, everybody else gets poorer. That's what breaks my heart. I love those girls at Safeway
serving me their salad and coleslaw and all this. It just blew their mind, they said, "$2 for this?" But that's what America
has sold the world there.

That this is valuable and this is fake. This is real. This is fake. – I'll give you $2 for
it, Robert, right now. – I know you would, that's
why I'm keeping it tight here. Here's my silver; the Lone
Ranger had the silver bullet, this is my silver bullet
from Dana Samuelson. Bite the bullet. (all laughing) So thank you, gentlemen.
Thanks for being teachers. And they have inventory. When things were really tough
I was scrambling because- – We were never without anything. – I'll tell you why I was panicking, if I waited a few more
days, the price would go up. And then when I ran in
there and then you guys, not you guys, but my other friend couldn't deliver me silver, I went.

And I said, "What am I going to do?" So I bought it that day
anyway for future delivery. So it was a gamble, so
basically a future delivery. – [Charles] Right. Yeah. – [Jim] it sounds like you did all right. – Yeah. Two last things: there's a thing called distribution and accumulation. Price of gold and silver is low, and silver and gold and
oil, I'm accumulating. I've been accumulating since '72. I own more gold than most people. Most of the gurus on TV. I own gold mines, silver mines because I believe in this stuff,
cause this is God's money. This is fake money. Thank you, gentlemen.
– [Jim] Thank you, sir. – [Charles] Thank you Robert.
– Pleasure to be here. – And when we come back, Sara
be back with a final word here.

So thank you, gentlemen. (upbeat music) Welcome back, Robert Kiyosaki,
"The Rich Dad Radio Show." Thanks to Jim Clark, the
Republic Monetary Exchange, RME, and Charles Goyette of
Republic Monetary Exchange. Because this is the hottest
subject of all today. It's silver and gold because this is fake. So Sara, if you have friends and
family who are still hoarding this stuff here, haven't
listened to this program and discuss it with them,
because I'm now called the Salad Bar Guru. (all laughing) I thought it was hysterical,
but it fried their brains. What's the difference
between this and this? One's fake, one's real. So Sara, what questions do you have? – [Sara] Yeah, well,
just wanted to mention, my brother for my niece,
she's 11, he said, "No more presents.

From now on we only want
you to get her silver." So every year, each sibling
gets her some silver coins. And I was like, "Man, he's so smart." Anyway, I just wanted to
point that straight out. But my questions to you
are, can you briefly discuss the different markings? What does that identify on the bars? – Okay, so this has the size of the bar, which is one kilogram.

Valcambi is one of the
worldwide known refiners of silver. It has their logo on it. It's been stamped with the serial number and the finest of 3.999 fine silver. The gold, a little different. It lists the number of ounces and this is four nines fine. Also with the serial number. And as you saw earlier, we
put the spectrometer to it to show that indeed, both of those are pure silver and pure gold. And if there's any doubt with anybody buying silver
and gold, is it real? We can put the spectrometer to it and show that it is exactly
what the purity should be.

– [Sara] Awesome. The second question I have
is, Robert had held up his buffalo and you called it
a generic one ounce coin. What's the diff? – So the US Treasury
and various governments around the world, Canada, South Africa, make a coin of the realm,
meaning an American Eagle for the United States. So the treasury makes that coin. The premium is significantly
higher for that than it is for this, but it's
exactly the same properties, same weight, same size and everything. – Wait a sec, so if
this was a Silver Eagle, but this is, I call this a buff, what's the price difference? – It's going to be $6, $7 and ounce more to have the name brand,
but silver's silver. So it depends if you, "Well,
I only buy a name brand, I won't buy Costco brand of
something, but I will buy the real ones that you hear
on television all the time," even though it's exactly the same thing.

So you get more silver for
fewer dollars if you buy it in the buffalos or what we call generic. But recognized as being
a coin of the realm and something that you can be
sure that it's the purity that it's supposed to be. So reputable private,
refineries make the buffalo, the US Treasury makes the
American Silver Eagle. – Why would somebody pay the difference? – Why do they? – No, I mean-
– [Sara] Why do they buy- – Money's is no object
and they don't mind paying $6 an ounce more, and it's
a US Treasury stamped coin. But you get more when you sell it too. – I bought considerable amounts from Dana in Austin, Texas, and he traded out my Gold
Eagles for regular gold. And I said, "Why?" He goes, "I don't know,"
but he says, "You just made a lot of money." So instead of having 10
ounces of gold, I now had 15 ounces of gold.

But just because one from
Eagles to something else. All I want is the ounce of gold. And as long as it's pure,
I don't really care. But some people do, right? – Yeah. And either one of those,
it's all recognized for them. So it's personal preference at that point. – [Sara] That was a big
question, cause Robert, if you remember back in
October, the team made a big silver buy, and
that was a big question, when we got the price sheet, we were like, "Why would we pay, if it's
the exact same thing," but that makes sense.

Just a name brand difference. – This is when we couldn't take delivery, we're buying a lot, so we
bought it from Andy Schectman. It was a lot of silver and gold we bought. – [Sara] The last question is, in the beginning of the
conversation we had talked about why you didn't want to
take cash, and you said it's a hassle. Is it also true because cash is devaluing so fast,
it's not really a fair trade. I mean, not fair, but
you know, even trade? Do you feel that way at all? – Well, it's cumbersome. And banks typically
don't want to take cash, and ironically, they don't
want to give cash out either. So we've had situations,
people wanted to go withdraw $100,000 in cash
at the bank, they'll say, "Come back in three or four
days and we'll accumulate it for you, but we don't have it here." I say don't even do that.

Just
wire the money over to us. It's just boom, boom, boom. Simple, we don't have to worry
about any counterfeit cash, although our machines pick it up anyway. It's a cumbersome thing
to do, but I look at the big picture; some point down the road, this cash is going to be worthless. And if the banks don't want
to take it in deposits, I don't want to be stuck
with $2 million or $3 million in cash and lose that. I would rather have money in the bank. Not money, but I mean fake
money in the bank that I can buy real silver and gold with
and have that on the shelf rather than cash sitting there
that is devaluing every day.

– [Sara] Yep. Good. Great. That was it. – Final word, Mr. Goyette. – Hey, thanks for having
us on again, Robert. – And this is your book here. Got to plug the book. – One of one of several. And it's about "Red and
Blue and Broke All Over" and how the country is broke all over and the exact story you've been
trying to explain to people for a very long time, and now here we are. – Another thing we do, Sara, is I send out a newsletter every week, my blog basically, that gives a synopsis of
what's going on the past week and maybe what we're seeing down the road. And just keeping clients and prospects informed of
how we see the market. And whether I'm smart or
not, it doesn't matter, I've been at this 50 years,
I've got a lot of experience and I can share a lot of information that I've acquired over the years.

And I encourage people to go
to our website RMEGold.com, and you can sign up for the newsletter. There's no charge, we email
it out every Sunday afternoon or Monday morning, whenever we
put the finishing touches on. And I would encourage
people to sign up for that at RMEGold.com – And that's why we
invited Charles and Jim, because they are educators like Rich Dad. I buy, I don't sell this stuff. (Robert chuckling) I do trade occasionally. But anyway, so thank
you very much, gentlemen and thank you all for
listening to "The Rich Dad Radio Show," and remember, this is fake and this is real. How much is this today? – That's about $5, so
you were really cheap when you were saying $2 or $3. – Oh my god! I was going to get taken. The salad bar ladies
were going to take me. (all laughing)
– [Sara] That's why he said, "I'll give you $3 for it." – They were trying to cheat
me at Safeway.

My god. – You're behind the times, Robert. You forgot how quick
this dollar is devaluing. – And they're raising
the price of the coleslaw on top of that. (all laughing) So thank you, gentlemen. – [Jim] Thank you.
– [Charles] Thank you. (upbeat music).

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Dave Ramsey’s Retirement Planning Advice Is Flawed: Here is How

Dave Ramsey is fantastic if you are needing some 
simple financial help to get out of debt maybe   you've been irresponsible with your money you've 
racked up toxic Consumer Debt and you're looking   to implement some basic strategies to eliminate 
that debt and to create new habits for yourself   when it comes to your money Dave has impacted 
millions of people when it comes to getting out   of debt when it comes to understanding money on a 
very basic level uh in a better way the challenge   is what has happened is Dave has helped millions 
of people get out of debt and in that process he's   built a lot of trust up with that people and so 
then therefore they start listening to him for   retirement advice for planning for the retirement 
future and in this video what I'm going to do is   I'm going to cover the flaw the major flaw that 
is in Dave Ramsey's retirement strategies I'm   not gonna argue whether he's right or wrong 
about returns but I am going to point out the   massive flaw that most people are missing that 
he never talks about can't wait to get into it   if you haven't already make sure you subscribe and 
hit the Bell that way you're notified every time   I launch a new video Let's Go hey what's going 
on cash flow hackers it's Chris with life 180.   if you've been watching this channel a while you 
know how I feel about Dave Ramsey um but I want   to kind of take the conversation about Dave to 
a little bit of a different level in this video   um here's the deal Dave is really good when it 
helps you when it comes to helping you get out   of debt but his advice on retirement planning 
is is absolutely in my opinion atrocious one of   the biggest challenges that I have about Dave and 
his strategies is that he's been singing the same   song for 30 years right he has not changed his 
philosophies his strategies he hasn't really even   changed the numbers that he uses when it comes to 
retirement planning and the expectations that you   should have around your entire your retirement 
planning even though the economic environment   has changed metamorphically right so if you 
understand that there are variables that impact   your money and impact what you can expect in 
retirement you have to understand that there are   no simple rules that Dave tries to tell you like 
Dave tries to tell you to follow to execute now   I will say um that you know the advice Dave gives 
is like it's better than nothing like that I will   say it's better than doing nothing and it's better 
than what most people do but I also believe that   it's it's a problem that if you follow his advice 
expecting a certain result and then you get to the   end of the rainbow and there's no pot of gold and 
you're actually not anywhere near you where you   thought you'd be that's going to be a problem once 
again we're not talking about the debt elimination   stuff we're talking about which by the way is a 
phenomenal thing to understand that and get out   of debt like so from that perspective I applaud 
him now moving forward when we're talking about   wealth creation that's where he falls down when 
it comes to retirement planning what I did is I   built a spreadsheet because I think numbers say 
a million words spreadsheet you know we can go   through this and what I'm going to do is I'm going 
to share this so here's what I wanted to do here   I wanted to take a look at a household income 
of about a hundred thousand dollars in today's   money I want to save 15 of that income annually 
I'm going to assume an expected return of 10 per   year okay so what this does is like Dave is going 
to sit here and talk about the fact that you need   to save money based on retirement you need to to 
Target retirement account values based on your   hundred thousand dollars a year of income the 
challenge is Dave doesn't take into this into   account when he's ever talking about it I don't 
know why either I don't know why if he if he   thinks people just aren't smart enough to figure 
it out but to me this is just basic Financial   stuff that you need to know the understanding 
of you need to understand to be able to make an   educated decision if you don't understand how in 
inflation impacts your financial needs long term   you're never going to be able to make a good 
financial decision and especially that we're   in this environment right now where inflation is 
4.9 percent last year it was over nine percent   long term since 1971 inflation has been over 
four percent actually nearing four and a half   percent so like from that perspective looking at 
it from a long-term historical average this 4.9   inflation environment that we're in right now that 
everybody's freaking out about is not even high   it's just a little bit above average now a lot of 
people would argue that inflation is actually way   worse than what we're talking about right now 
because the actual impact on the calculation of   inflation uh the the impact is is much greater and 
worse on individual households uh than what the   calculation says because they've actually changed 
the calculation over the past 40 years on how they   determine the inflation numbers which to me is 
Criminal on its own but here's the deal we have uh   we have the hundred thousand dollars of income so 
what I have over here is I have um the retirement   account balance needed to live with a four percent 
rule so if you don't know what the four percent   rule is it's the rule of thumb that says you can 
distribute four percent of your retirement account   value and not run a significant risk of running 
out of money during your lifetime so that is like   the safe distribution calculation expectation so 
what this is showing is that if you had a hundred   thousand dollars of income you need 2.6 million 
dollars um actually it's a hundred four thousand I   didn't do it for year one if you get to year two 
and um you know your real need on four percent   inflation is going to be a hundred four thousand 
because your cost of living with inflation going   up it means you're going to need more money 
it needs your hundred four thousand dollars   next year with four percent inflation is gonna 
feel like a hundred thousand dollars of income   Fields today the challenge is household income 
historically is only going up in about three   percent so it's lagging actual inflation and this 
is why the middle class and the poor are getting   poor and there's this growing divide between the 
wealthy and the middle class it's not so much   other economic policies even though that has a 
play with it long-term inflation is the greatest   tax that is hidden to the American population and 
it has a hugely negative impact uh on the middle   class and lower class the most right so ultimately 
this column is what I would call your freedom   number your freedom number is simply the amount 
of money that you need in an account to be able   to retire to be able to be completely financially 
free and so right now use using traditional four   percent rule methodology and now I'm not taking 
into account Social Security or pension or   anything of that nature so if in fact you did 
have a pension if in fact you want to lean on   social security for any reason you'd have to look 
at your calculation and reduce those off of this   number and then you divide that by four percent 
and that will give you uh this number so if you   said let's say you had fifty four thousand dollars 
of pension and social security you'd subtract that   out that'd be fifty thousand divided by uh divided 
by the uh four percent and that would get you what   your uh Freedom number would be it would tell you 
how much money you need in that account to be able   to kick off passive income for you for the rest 
of your life now here's the challenge as I said   household income is only going up at three percent 
and Dave is saying hey you need to save 15 even if   we earn 10 which is by the way wildly unrealistic 
right I'm showing this at at 10 and it shows you   at 6.561 million here but really that's because 
of the fact that it's assuming that you're going   to have a 281 thousand dollar uh need for annual 
income now here's the deal your income is going   up at three percent per year that 283 35 years 
from now because I'm assuming it's a 35 year old   retiring at 65.

Dave doesn't talk about the fact 
that if you earn 100 Grand right now you're going   to need 281 to be able to maintain your standard 
of living that's not 281 000 in today's money   that's 281 000 in future money right I just did 
a video the other day talking about uh inflation   and the inflation crisis and ultimately how that's 
going to impact you um and and how that's like the   history of this inflation and and where it looks 
what it looks like moving forward into the future   um but this 281 by the way is assuming only 
a three percent increase at a four percent   historical average of inflation if we look at 
it that way you're going to actually need 394   000 and if you back that out you're going to need 
9 million 865 000 and the problem is all of your   Social Security cost of living adjustments cost 
of living increases they don't keep up with the   actual rate of inflation so the need for you 
to take more responsibility for your retirement   planning is becoming greater and greater and 
greater and as as inflation keeps going up this is   a way if you think about it from a social security 
perspective this is a way that the government's   able to kind of save Social Security if they 
can inflate the currency of four percent and   devalue the currency but then only give you cost 
of living adjustments at two percent that means   they're recapturing that money and saving the 
program simply by the way they're doing that but   ultimately they're stealing that money from you 
through a hidden tax the problem is Dave doesn't   talk about all this and what he does is he talks 
about your need for this money he talks about   saving a million dollars and I got news for you 
you could save three million dollars and if you   get to uh retirement and you have three million 
dollars but you need to live on 281 000 a year   you are going to be up the creek without a paddle 
you're not going to be prepared and you're not   going to be in a position um you know ultimately 
where you're you know going to be able to uh   have a a solid situation you know that's that's 
really what it comes down to you're not going   to have any kind of predictable income you're not 
going to have any stability uh you know and you're   ultimately going to have a lot of risk especially 
when it comes to Market risk sequence of return   risk and and just Market volatility risk when 
it comes to your retirement if you if you follow   his plan you're going to be under saved when it 
comes to retirement simply because you didn't give   enough credibility to the impact that inflation 
is going to have on your future needs because   think about it this way everything I just showed 
you was a 10 assumption I could show you a lot of   ways that 10 is completely unrealistic especially 
when you talk about actual real returns I would   say six to eight percent is is the more realistic 
expectation and even then there's some risk   involved right so if we if we back that out what 
what that would look like at even eight percent   which is I think the more I guess traditional 
method that most financial advisors would say   you could get from a long-term perspective if 
you look at eight percent you're only going to   have just over four million dollars that's about 
at retirement 35 years from now for a 30 year old   right when you hit 65 so in that scenario you're 
still looking at only accumulating about half of   the money that you're going to need just to 
maintain your standard of living I don't care   how much you have in Social Security or pension 
it's probably not going to make up that Gap   and you're going to have to take a reduction in 
standard of living even if you follow his advice   and have no car payment and have no mortgage or 
anything like that it that that doesn't matter   that that's not gonna make up for the Gap that in 
inflation has caused for a problem for you and so   that's something that you need to consider so my 
encouragement to you is to go through your plan   figure out what inflation is going to do to your 
retirement planning needs and if you want help   with this I've got a team I've got a certified 
financial planner on the team that's happy to walk   through this give you a consultation walk through 
your needs walk through your current plan and and   give you an analysis and an evaluation on what you 
need to do moving forward to reach your goals on   a predictable basis one of the things I always 
ask I always ask people four questions first and   foremost doing what you're currently doing do you 
know what rate of return your money needs to earn   to be able to retire when you want and guarantee 
your standard of living for the rest of your life   if you don't know the answer to that question then 
everything else is going to blow up you can't plan   accordingly if you don't know the answer to 
that question second question is if you if you   don't know that number the question is do you know 
how much more money you have to save to be able   to retire at your desired standard of living and 
be able to retire when you want and if you don't   know the answer to that which most people don't 
I've literally met one person in my life that   actually knew those numbers ahead of time then 
you start backing it out and go okay how much   longer are you going to have to work if you get 
to retirement age and you haven't met that and you   still need to work well a lot of people they have 
to work an extra decade just to make it make ends   meet right people are thinking they're going to be 
able to retire at 65 but they have to work till 75   or 77 or 78 it's it's really just a sad situation 
but then the challenges our health a lot of times   sometimes sadly unfortunately fails on us we don't 
when you hit 65 there's no there's no promises   there's no guarantees heck there's no guarantees 
anyway but especially when you hit 65 our health   starts to fail like and for most Americans most 
people in this world Health starts to decline at   least and there's start to be different needs our 
bodies break down maybe your body isn't going to   be as capable of doing the job that you did for 
all those years to earn your income and so now   you have to start being like even if I wanted to 
keep working what is my real earning potential am   I really going to keep being able to do that or 
if I get sick what kind of reduction in standard   of living am I going to have to take just to be 
able to last the rest of my life and not run out   of money right and so these are the things that 
you need to consider if you haven't already like   I would encourage you to really do a deep dive 
because my favorite favorite quote in the world   I think and it's kind of tongue-in-cheek but just 
because the ostrich buries his head in the sand   doesn't mean the Lion's Den or plans have changed 
right this this is your problem this retirement   thing is a real problem it's a it's a thing that 
you need to figure out a solution to and you need   to create a plan for as good as Dave is at helping 
you get out of debt he's not great at helping   you plan for your future um and and his his 
information while it seems great because it's kind   of geared towards the masses it's actually in my 
opinion it's it's super detrimental to most people   that are listening to them because you're going to 
get to the end of the rainbow there's a going to   be no pot of gold you're going to find out you got 
to work longer if you're healthy enough to do so   or you're going to have to reduce your standard 
of living because you didn't take some of these   variables into consideration so anyway hopefully 
you found value in that if you did please like it   share it get it out there to people subscribe 
hit the Bell that way you're notified every   time I launch a new video until next time have a 
blessed inspirational day we'll talk soon see you

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THE WEALTH OF NATIONS | PART 2 (BY ADAM SMITH)

As promised, here is the second part of The Wealth of Nations, one of the most influential books ever written about economics If you haven't watched the first part yet I'd advise you to do that now, as some of the takeaways here build on those from the previous part Let's continue where we left last time … Takeaway number 6: Accumulation and employment of capital What's the similarity between Michael and a country like the US, China or Sweden? It is that they get wealthy in the same way Allow me to introduce The Swedish Investor's "Stairway to Money" All copyrighted and original content, of course Each different step represents a category that an individual can spend money on To become wealthy a person wants to spend money on the higher steps and not the lower ones At the bottom, we have services meant for consumption These are the worst things that you can spend your money on, as you'll consume them instantly Vacations, dinners and video on demand all belong to this category The next worst thing to direct your money towards is products meant for consumption Products depreciating value from the time of purchase, but at least they're not as bad as services because you will still be able to sell them at a later stage, even though it may only be at a fraction of their original value Cars, clothes and phones belong to this category Then we have products that do not depreciate in value and that often keep their value through inflation Important entries in this category are collectibles and a house to live in And at the top, we have investments This is a very broad category indeed, and anything which is expected to generate more cash in the future than the outlay of money is today, plus a reasonable return, belongs here Therefore – starting a business, educating yourself, investing in the stock market, or renting out properties all belong here It's the same with countries If a country buys services from another country, money flows right out from it without being replaced with something else that is valuable If a country buys products from another country, at least some of the value is still preserved as products can be sold again at a later stage It is similar with a third step in our Stairway to Money A country gets rich by increasing its own productivity by starting businesses there, by educating its people so that their skill and dexterity increases, or by buying productive assets from other countries BUT …

… and this is unimportant but Neither people nor nations should be afraid of having expenses just because of this Both people and nations, if they want to acquire wealth, should focus on what they are naturally good at and then outsource the rest This is what we shall focus on next Takeaway number 7: Globalization – the shortcut to increased wealth Here we have. Michael Lewis, a 32 years old engineer He's working at a job where he's paid a base monthly salary, but he's also compensated for overtime For overtime hours, he nets approximately $30 per hour Given this, here comes a few questions for you: Should michael cook his own food? Should michael clean his own house? And, sorry now i'm getting a bit silly just to prove a point here, should michael build his own phone instead of buying one from apple? From a wealth standpoint the answer is no to all of these questions It makes sense for Michael to do what he is best at, earning money from that and then hire other people to do what they are best at for everything else that he demands Perhaps Michael can cook his own food, but it takes him about an hour to prep a single meal, which means that he does so at a cost of $30, because he could have spent that time working as an engineer Therefore, it doesn't make sense for him to do it as he can just buy a meal outside for $15 Similarly, he can clean his own house, but it takes him 2 hours to do So that's $60 for Michael, while he can hire someone to do it for $40 And as an engineer, he is capable of building his own phone, but it might take him something like 200 hours plus $200 in materials That's a $6,200 phone! Why not just go buy the latest IPhone for $1,000? If it doesn't make sense to do something at 6 times the price it doesn't make sense to do so at 2 times the price, and probably not at 1.5 times the price either It is the same with nations For nations to increase their wealth, they should be focusing on the things that they are really good at, and then hire other nations to do what they are best at For example ..

The US is obviously a leader in many different businesses, but among others, in the fast food and entertainment industry China is incredible at producing most products at very low prices And in Sweden, we are quite good at producing furniture … … sorry, I mean at making everyone else produce furniture for themselves, of course Now, should Sweden try to produce the same products that China can produce much cheaper? No. Should China compete head-to-head with Hollywood? Probably not. Should the US have everyone produce furniture for themselves? Definitely not! All these countries can be more productive, and in that increase their wealth, by simply doing what they are best at, and then trade goods with each other Also, to make another comparison between individuals and countries in their quest for wealth: Both of them will earn more by having rich neighbors or acquaintances People know that if they want to be rich, they should move where other people are rich And probably even more importantly – they should acquire rich friends It's the same with nations A country should want their neighbors and trading partners to be wealthy, because eventually that wealth will spill over to them, too Just look at this map But we've been getting this backwards for centuries now In the 18th century, Great Britain and France, probably the two wealthiest countries in Europe at that time, did everything they could to make business miserable for each other instead of cooperating They even went to war with each other! Today, let's hope that the two most important economies of our time, the US and China, don't make that same mistake Takeaway number 8: Why free trade is superior, and why governments shouldn't interfere As we talked about in the previous video – in a capitalistic society, money will naturally flow where the returns are higher and disappear from where their returns are lower In a society where the government does not interfere, two rules will guide capital – Capital is naturally employed where it can produce the greatest returns This is actually a good thing, because businesses like these are more sustainable than anything else They will employ people where there is demand and a real competitive advantage – Capital is also naturally employed in the home market, as this comes with less risk This is also good, because it creates working opportunities in the own country For these two reasons, it is totally unproductive when governments interfere with the market Just as an imaginary example: Say that we, in Sweden, would do something as silly as setting up a ban on movies created in Hollywood What would happen when such a ban is introduced? Excluding potential retaliation, it will yield higher profits for the film industry in Sweden than what would naturally be the case Therefore, more capital will be incentivized to flow to this industry But this business still isn't competitive on a global scale.

Everywhere else than in Sweden, people will still watch movies from Hollywood! Moreover – the capital in Sweden which goes towards the creation of film is capital that could have been directed towards something where Sweden is competitive on a global scale, like the previously mentioned furniture Generally, politicians must have a small dose of God Complex if they think that they are smarter than the aggregated thinking of the market when it comes to capital allocation decisions in businesses There are two examples when it might be necessary to introduce duties, bans and tariffs though: – For goods that are important for the defense or survival of the country – And when a tax is imposed even on such domestically produced goods You don't want to shift the favor to the foreign goods, at the very least Apart from that, governments should probably stay away from using duties, bans and tariffs on foreign goods They should not incentivize certain industries or disincentivize others, because the market is likely to do this very well on its own, thanks to the before mention two There are a few areas where a government is absolutely necessary for the wealth of a nation though, and that is what we shall cover in the next takeaway Takeaway number 9: What is the purpose of a government? According to Adam Smith, there are some tasks in a society that the market and private people have little or no interest in solving The four that Smith discusses are: – The defense of a country – The justice system – Some type of infrastructure – And basic education The defense of a country is absolutely necessary for its wealth to increase Interestingly enough, a country is more and more likely to be invaded the richer it is Or so it was in the old days at least ..

Consider the raids of Genghis Khan and his Mongolian savages of the much wealthiest cities of China Or how the vikings invaded many much more established societies in Europe The savages actually had the advantage at this time, as they were much more skilled fighters But that all changed with the invention of the firearms Firearms were expensive to make, and no matter how skilled an army of spears and bows were, it couldn't beat one equipped with firearms And so, the odds changed in the favor of the wealthy nations, who could afford these supreme weapons Anyways … A nation must be able to defend itself to sustain its wealth And as this benefits everyone in a society, it does make sense that a government has the responsibility of this task Justice, is similarly an expense that benefits everyone in a society In the old days, justice was often exercised by those in power, but one can easily understand how such a system can be very corrupt It is essential that justice and power are separated.

Otherwise – who should bring justice to those in command? Similarly, a justice system that is based on profits tend to be very corrupt too, so it doesn't lend itself well to the free markets It used to be like this too, everyone that wanted justice had to bring a gift to the judges As you can probably imagine, the person who brought the greatest gift tended to get a little bit more "justice" than everyone else … So to speak. Therefore, the task of bringing justice to its people should be paid for by a government But those that use the justice system often should probably pay extra for that Infrastructure, such as the most important roads and docks used for commerce of a country, is something that benefits everyone too But it doesn't invite the same conflict of interest as the justice system does, and should thereby often be held privately Infrastructure should be financed with revenue from the commerce which can be carried by means of it. Because in this way, money will much more seldom be wasted on infrastructure projects Some infrastructure projects can be important without being profitable, but in that case they should often come with a local tax, not a national one Without some type of basic education being free and probably also mandatory, some of the country's inhabitants, those that are born into poverty, will most likely never learn how to read write or count Such inhabitants are unlikely to increase the productivity of a nation Therefore, we want to avoid that this happens A benefit such as learning to read, write and count benefits everyone and it should be one of the purposes of the government of making sure that this is done Takeaway number 10: How should a government be financed? So ..

With defense, justice, infrastructure and education, a publicly financed government seems to be the most fair and logical solution But there are many different options of financing something, and some are definitely better than others Here are 4 principles for creating good taxes: Equality Each person should contribute in proportion to his or her abilities and in proportion to the revenue which he earns under the protection of the state It is difficult to make sure that the wages, profits and rents (the three sources of income which we discussed in the previous video) are all taxed equally, but they should at the very least be taxed equally individually Certainty Time, quantity and manner of payment must always be clear This is probably the most important principle.

A little bit of uncertainty is worse than a great deal of inequality Uncertainty leads to the potential corruption of the tax gatherer Convenience Taxes should be due when the contributor is most likely to be able to pay The consumer pays whenever he consumes a service or product, and the wage earner should pay taxes as soon as he gets the wage, not at some other time when he might already have spent it all Efficiency A tax may never be more burdensome to the people than it is beneficial to the government For instance … – As few people as possible should be required for gathering the tax – A tax should never discourage industry – And the degree of visits and examinations of the people shouldn't make them feel oppressed With these 4 principles in mind, i'd like to ask you a question: Do you think that it is a good idea for a country to have a wealth tax? In other words, a tax which is in proportion to the total assets of private people. Please comment with your answer down below! Alright, that's it for Adam Smith's Wealth of Nations Here are two unusual recommendations for further watching from other channels: You can watch me doing the Navy Seal's screening test for eight hours, if you want to watch me in a lot of physical pain Or, you could watch this summary of 79 of my book summaries Cheers guys!

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Retire Wealthy Home

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The $65,000 Roth IRA Mistake To Avoid

– I've seen too many of
you making some mistakes when it comes to investing
in your Roth IRA. One of them could cost you
$65,000 and the other one could cost you almost $500,000. You guys are seriously going
to make my beard turn more gray than it already is if
you don't knock it off. So let me show you what to watch out for, that way, you don't lose more money than you have to and
I can save a few bucks on hair dye for a couple more years. A Roth IRA is a self-directed
retirement account where you can contribute after
tax dollars to be invested. Since the money going in is taxed, the growth of your investments are not taxed and the money withdrawal from the account are never taxed either, as long as you don't try to pull out some of the money before the age of 59.5.

There is no such thing
as a joint Roth IRA. So if you and your spouse
want to contribute to one, then you'll have to do it individually, hence the name Individual
Retirement Account. If you both have enough
earned income separately, then you can each invest up to the $6500 limit for the year. If one of you works and the other doesn't, but you file a joint tax return, then the person working can, of course, contribute to a Roth IRA and
your spouse can contribute to a Spousal Roth IRA as well.

Remember, these accounts are
owned by the individual person and on paper, not co-owned by both people. I want to try to encourage you to max out your Roth IRA every single year, if possible, because if you
don't do it for that year, then in the future you
cannot go back and contribute for a previous year once that time limit has passed. A Roth IRA is one of those accounts where I would bend over backwards to make sure that I can
put in the full amount allowed every single year. In my order of operations for
what to do with your money, I have maxing out a Roth
IRA right after investing up to your employer match and HSA. That is how important
this type of account is. The good news with this
is that you actually have a timeframe of 16
months to contribute for each calendar year. So if we are in 2023
right now, then you have from January 1st, 2023, up until
when taxes need to be filed for that year to contribute,
which in this case, would be April 15th, 2024.

That's how it is every single year, so ignore the actual dates in my example and pay more attention to the timeframes since the date taxes are due
will change by a few days from year to year. Most brokerages will ask
you which year you want to contribute to. For example, I personally
invest using M1 Finance, which you can check out down
in the description below, and also get a deposit bonus as well. If I contributed to my Roth
IRA through them right now, then they would ask if I wanted the money to go towards 2022 or 2023, since at the time of recording this, we haven't hit the date
where taxes are due. This is great because it
gives you some extra time beyond the current year to
contribute Roth IRA money for that year. Before I tell you the next mistake that I see way too many people making, please help support my dog Molly by hitting that thumbs up
button and sharing this video with anyone you think it would help.

Once you deposit money into your Roth IRA, there's one more extremely important step you need to do that I see a ton of people missing, and that is
actually investing the money. I can't tell you how
many people I've talked to over the years who just put money into the account assuming
it would automatically grow, or knowing that they
needed to invest the money, but just forgetting to do
it because life happens, and things naturally slip out of our mind, only to check their account
balance years later, realizing that it hasn't grown in value because they didn't invest the money. Stop the nonsense here and
just set up auto investing within your investment account, and if you're waiting because you think that you can time the market
to buy in at a lower price, you can't, because it's
nearly impossible to do, so just to get the money
invested right now.

If you know how you want to
invest the money, then great. If you don't, then I personally
like the two fund portfolio for people who are in
the accumulation phase of investing and in the
three fund portfolio for when you're closer to
retirement or in retirement. I'll have a link to a
playlist then I made just for you where I teach you
about both of those portfolios down in the description below
and above my head as well.

When you contribute to a Roth IRA, all of your money is not
locked up until 59.5. You can withdraw the
contributions that you've made before that age without paying a penalty, but you cannot withdraw any of
the gains within the account. For example, if you've contributed $6500 and the account has grown to $10,000, then you can withdraw
the $6500 contribution, but you cannot touch the $3500 gain without paying a penalty until 59.5. I've gotta interject for a second to give my personal opinion on this. While withdrawing money
penalty-free is an option, I want to encourage you not to do this.

To be brutally honest, I think that doing this
is one of the dumbest, most irresponsible, short-sighted
things that you can do. Withdrawing just $6500
worth of contributions would cost you $65,000 in
future investment growth. So when any money is
taken out of this account before retirement, think
about how it's actually going to cost you 7,800 Chipotle burritos, or 65 new Apple iPhones, or anything else that you would buy for that amount of money. And yes, I am fully aware
that you can do a penalty-free early withdrawal up to
$10,000 before the age of 59.5 for a first time home purchase. But this is just as stupid as withdrawing your contributions early
because that $10,000 is costing you over $100,000
in future investment growth when you pull that money out. Average annual home appreciation over the past 12 years has been 6.11%, and the US stock market
has returned 12.27%.

Leave your money in the freaking Roth IRA and go earn that $10,000 that
you need to buy the home. Responsible investing takes time, like five or 10-plus years, and this money needs time to grow. The second you withdraw
any of your contributions, you are cutting down that tree before it even has a chance to grow fruit. Once you withdraw
contributions from the past, you cannot replace that
money in the future. I get that emergencies happen in life, so that's why you need
to have money set aside in an emergency fund to
pay for those things.

Do not, under 99.999% of circumstances, use your Roth IRA money for anything other than when you retire. One thing I see way too many people doing is investing in a
taxable brokerage account before they have their Roth
IRA maxed out for the year. This is a huge mistake from a tax savings
perspective for some of you because of how each account is taxed. With a Roth IRA, you invest with money
that's already been taxed, so the money can grow tax-free
and be withdrawn tax-free.

With a taxable brokerage
account, you are paying taxes for the ongoing dividend
distributions every single year. Then you have to pay capital gains tax when you go to withdraw the money. Since the money within
a Roth IRA will grow and can be withdrawn tax-free, realistically, you want
this account to get as large as possible, but not at the expense of
your personal risk tolerance. You should not take on
additional levels of risk by investing in more
risky, unprofitable stocks that random YouTubers have been pumping over the past few years or actively manage funds to
try to achieve higher returns.

99% of people, including
myself, cannot handle investing in something with a
high risk and potential, potential, high return. So don't even bother. The money in this account
is for retirement, so is it really worth it to risk that 60-year-old's financial wellbeing because you decided to gamble with their money right now? I doubt it. Some of you might be over
the income limit to be able to contribute to a Roth IRA, or some of you will be at
that point in the future as your income grows. You can still contribute to a Roth IRA to take advantage of the tax-free growth by doing a backdoor Roth.

To simply explain the process,
all you do is contribute to a traditional IRA. Do not invest the money yet. Then contact your brokerage
to have them convert the money to a Roth IRA. Now, I have done it with M1 Finance before and it was extremely easy. It only took I think two or three days for the money to get into my Roth IRA. Only do this if it makes sense based on your current tax rates
and future financial plans. There's two things that you can do. if you are someone who thinks that you might be over the income limit, but you are not going to 100%
know until the year is over. Number one, you can
either wait until January of the following year,
like we talked about in one of the previous mistakes that
I mentioned, or number two, you can just contribute the
money to a traditional IRA, then do a backdoor Roth within
the year to get the money into the account so it can be invested.

That way, if you are
over the income limit, you've already done the backdoor Roth. If you're under the income limit, no big deal 'cause you had to pay taxes on that money that was going
into the Roth IRA anyways. A question I get a lot is
whether or not you can contribute to a Roth IRA on different brokerages. The simple answer is yes. This is how it would play out. You can contribute up to the max for one year
on, say, M1 Finance. Then you can decide to contribute up to the max on fidelity the next year. Then you can contribute up to the max on Vanguard the following year. So by the end of that third year, you would have three different Roth IRAs with three different brokerages, and there is no problem with that.

You can take it one step further. If you decide, hey, out of these three, I actually like M1 finance
better than the other two, you can convert the
Roth IRAs with Fidelity and Vanguard into your
M1 Finance Roth IRA. You can also split up your contribution for the same year among
different brokerages. So if for this year you want
to say contribute $4,000 to an M1 Finance Roth IRA and the remaining $2,500
into a Fidelity Roth IRA, then you can do that without any problems.

The only thing you
cannot do is try to game the system by saying contributing $6500 into an M1 Finance Roth IRA and $6500 into a Roth IRA with another brokerage. You cannot exceed the maximum
amount allowed per year across all of your Roth IRAs on all of your brokerage accounts. Technically, you could do that since all of the brokerages aren't talking
to each other to keep track of what you are contributing, so you have to self-manage this.

I would highly, highly recommend making sure
that you do not do this, whether it's on purpose or on accident. I don't know what the penalty is for this, but all I know is that you do
not want to get caught trying to defraud the government
in any way, shape, or form. Long-term investing is the name
of the game with a Roth IRA. This money is for when
you are in retirement, so make sure to take that into account when investing this money. No gambling it on stocks
that random YouTubers are promoting. I think the two or three fund portfolio is perfect for your Roth IRA, which you can learn more about
in these videos to your left.

There's a bunch of free stocks and resources down in
the description below to help with all of your personal finance and investing needs. I'll see you in the next one, friends, go..

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401K to Gold IRA Rollover

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