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I asked a personal finance expert how to invest.

– Investing, when most people think of it, they imagine day trading, stock tickers, and people screaming at each other. But apart from what you may have heard, investing doesn't need to be complicated, overwhelming, or even boring. The basics are actually quite simple. And once you get them down, you could make millions of
dollars in your lifetime. With the help of my friend
and personal finance expert, Ramit Sethi, we're gonna
ditch the generalities and get into the specifics
covering how to start investing, what accounts you should open up, and all the things that you
should and shouldn't be doing when it comes to investing. – This is a critical mistake people make. And it will cost you hundreds
of thousands of dollars. – This video is sponsored by Squarespace. More on them later. My early twenties weren't exactly my most productive financial years.

I remember counting
pennies in line at Wendy's to get their $1 chicken sandwich. And if you're in a similar situation, it might feel impossible to even start thinking about investing, and that's because you probably shouldn't. Before you open up your
first investment account, there are two big steps
that you need to take that most personal finance
experts can agree on. First, you need to build
up an emergency fund. You can start with a month of savings, but eventually, you should get it up to three to six months of basic expenses. We're talking about the bare minimum: rent, utilities, groceries, and gas. What is the absolute minimum
that you need to get by on? And second, you should
pay off all of your debt except for your house.

You specifically wanna focus on the debt with the highest interest rates, so those credit cards,
student loans, and car loans that are 8%, 9%, 10% or
more should be tackled as soon as you've got your
emergency fund filled. The power of taking these
two steps alone are huge when it comes to your
personal finance journey. And they will likely take years of saving, patience, frustration, and sacrifice, especially if you graduated with $100,000 of student debt like I did. But once you pay off your last loan, you'll finally be ready to start investing in the stock market. Warren Buffett once famously said, "My wealth has come from a
combination of living in America, some lucky genes, and compound interest." Compound interest is the reason you need to start investing
as soon as you possibly can.

– What we know is that over the course of a long period of time, we're talking 40, 50, 60 years, the market tends to return about 7% to 8%. That's per year. So people go, "Well, is that
a lot? Is that a little?" Doesn't mean anything to people. What that means is that your money will essentially double every
10 years if you do nothing. Let's say you invest $5,000
a year from age 25 to 65. At an annual return of 8%, you'll have a total of
nearly $1.3 million. If you chose not to invest and instead stash the money
away in your sock drawer, you would have $200,000. That's a difference that
will easily change your life. – So the minute that I paid
off my last student loan, I knew that I wanted to start investing, but I still had so many questions. How do I open an account?
What company do I use? How much should I invest?
What stocks do I invest in? It was truly overwhelming.

There are a number of different accounts that you could open up with
varying fees and tax advantages. My guess is if you've thought
about investing before but haven't taken the leap, this is where you've
gotten stuck in the weeds. So let's break down exactly
what you should be doing from the minute that you
decide to start investing. In the U.S., if your
employer has a 401k plan and offers matching contributions, then this is the first account that you should start investing in, and you should probably
take advantage of this deal even before you finish
paying off all of your debt.

Put as much money into this 401k plan as your employer will match. After that, the first account you should open up is a Roth IRA. If you meet the income requirements, there are some great tax
advantages to Roth IRAs, and it's why most personal
finance experts recommend it. But what companies should
you trust with your money? – There are a few companies I love. I personally use Vanguard.

I have no financial affiliation with them, but that's where I suggested
my wife open her account. They're super low-cost. They don't get you with a bunch
of fees. That's important. Fidelity's also very good.
Schwab is also very good. All three of these are great. Some people ask about
robo-advisors. It's really popular. I think they're fine. If you are coming to me, you're saying, "Ramit, should I do Wealthfront
or Betterment or Vanguard?" There is a slight difference in fees. You know, you might be
paying about 0.3% more for Wealthfront or Betterment.

In the grand scheme, it's not
the worst thing you could do. Personally, for me, I
don't think it's worth it. I don't mind that Vanguard
has a worse interface because I hardly log in. It's not important to me. And I want a company that
is focused on low fees. – So, to keep things simple, if you haven't opened an account already, just go with Vanguard. They've got really low fees, give you all the investing
options you need, and they make it really
easy to get started. Okay, now that you've created an account, what do you do next? Well, you actually need
to invest your money, and regardless of what your
brother-in-law told you, investing your life savings into Bitcoin is probably a terrible option. I think when a lot of people think about investing in the stock market, they think about, like, you said, Tesla.

They think about investing
in specific companies. Some of them go, "Ramit, why would I invest
in the stock market? 7%? That's for losers. Bitcoin, you can average
50% to 60% a year." I go, "All right, let's start
with some basic math here, which you missed the
day they taught that." If you're getting 60% returns per year, pretty soon you have more money than all the money in the universe, and there are essentially no investments that are consistently
getting you 60% returns.

Oftentimes, really what people are doing with these highly speculative investments is they are admitting I have lost the game of money for myself and the only chance I
believe I have to win is to buy a lottery ticket. And that is not how you invest.
That's not how you do it. – So, instead of investing
your money into one company, one stock, or one risky bet, you need to diversify by investing in something called an index fund.

An index fund is a type of investment that pulls together stocks, bonds, and other securities into
one diversified portfolio. While there is always a risk
when it comes to investing, this reduces the overall amount of risk that you need to take. What are the investments
that are safe in the long run but that will also give us a return where we can actually have
a living when we retire? – I love a target date retirement fund. You simply pick the year
that you're gonna retire. Basically, the year you're gonna be 65. And you just put all your money into it. It's automatically
diversified, automatically. It includes stocks, bonds. It includes domestic,
large caps, all that, and you just put as much as you can. They charge essentially no fees. This is not a financial
advisor that's charging you 1%. It's just a computer
that's doing it for you. People almost find it unbelievable. They go, "Ramit, you're telling me that I just pick one target date fund, and I invest in that same fund
in my 401k, in my Roth IRA, even in a taxable brokerage account?" For the most part, yes.

For the vast majority of people, a target date fund is a fantastic thing. If I had, like, if I were
telling a brother or sister, family member, and they're 25
years old, what should I do? I'd be like, put every
extra dollar you've got in a target date fund and
get on with your life. – I wanna share the exact
index fund that I invest in as well as the strategy you need to know once you start investing your
money into the stock market. But first, a quick word from
my sponsor, Squarespace. So I chose to build my first website on Squarespace eight years
ago for three main reasons. Their templates are beautiful. It's really simple to make changes, and you don't need to know any code. Let me show you exactly how easy it is. Let's say you wanna create a blog documenting your journey out of debt and towards financial freedom. You get started by
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Next up, you grab a template
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Visit squarespace.com
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make a website for yourself, click the link in the description below. Thanks for considering. I
forgot to turn the camera off. All right, so let me show you the exact target retirement
fund that I invest into when it comes to Vanguard.

So this is it. It's the Vanguard target
retirement 2050 fund. Obviously, if you plan on
retiring earlier or later, you would pick a different fund, but this is because I plan
on retiring around 2050. You can see, over the past 10 years, it's performing at 8.36% annually. After you've actually invested your hard-earned money
into the stock market, the hard part comes, waiting. How you manage your
emotions and risk tolerance is one of the most important aspects to building wealth over time because growth isn't a straight line.

– It goes like this. It's up. It's down. Some years it's up 30%.
Some years it's down 6%. This year happens to be down. But you have to remember
that it was way up for the last 10-plus years. – Most people just can't stomach the twists and turns
that the market takes, and over the past year, things have been looking a bit dicey. – But it does seem we are kind of slipping into a recession, doesn't it? – People are gonna feel a lot of pain. – Concerns, of course, about
the potential recession, they continue to loom. – In a poll for the Wall Street Journal, economist put the probability of a recession in the
next 12 months at 61%. – And the fear is that we
are much more likely now heading toward a recession. – What would you say to somebody who sees this happening right now and wants to pull their
money out of their 401k? – If you do this, you are doomed. It's one of the worst financial
decisions you can make to try to pull your money out.

Let me explain. It's called timing the market when you try to pull it
out at the right time and then get back in at the right time. There's several problems with this. First of all, you don't know if it's gonna go lower or higher. And people go, "Well,
dude, it's so obvious." It's actually not obvious. People said it was obvious
in 2008, 9, 10, 16, 20, 22. It's not obvious. It can
go up. It can go down. The market does what
the market's gonna do. You cannot predict it. Second, even if you pulled
it out at a great time where things are really
high, and then it goes low, you need to be right a second time to put it in at the right time. The solution is to simply invest every single month consistently. Doesn't matter whether it's up. Doesn't matter whether it's
down because you don't know where that fits in the overall scheme. Every month you set up an
automation in your Vanguard, Fidelity, Schwab account, and it might be $100, it might
be $1000, it might be $5,000.

It's just continually going in. So when it's expensive,
you're buying fewer shares. When it's cheaper, you're
buying more shares. Over time, that strategy
called dollar cost averaging tends to dramatically
outperform timing the market. – I remember the day that
I first invested money into the stock market through Vanguard. I knew that I wasn't supposed
to be checking these accounts. I had read books by Ramit
and others that told me so, but I couldn't help it. I refreshed that thing every single day, tracking the changes and
watching as it went up and down. But eventually, I decided
to stop obsessing, and I just let the investments do their work in the background, and it was the best decision that I made. Now I check in every six months
to see how things are going. And over the past eight years, on average, I've returned about 8% annually. If you invested $5,000 per
year over the same time period, you'd have made $13,000 in interest. And if you remember that graph
from earlier in this video, if you keep investing, your money will soon grow exponentially.

That is, of course, unless you make one
fatal investing mistake. – This is a critical mistake people make, and it will cost you hundreds
of thousands of dollars. A lot of you watching have parents who are using a financial advisor. I want you to pull out
your phone right now. I want you to text mommy and
daddy, and I want you to say, "Hey, how much are you paying Chet, our neighborhood financial advisor?" Chet, when he gets the question, is going to go into a
very long monologue about, "Well, you know, we're
here to protect your money. I wanna keep you safe, and
I'm always looking over it, and blah, I'm making decisions. (bleep) Chet is ripping your parents off. Chet is charging: I can almost guarantee, a 1% assets under management fee. Now, you go, "1%, what's the big deal? That's not bad to have
somebody look over it." Over the course of your lifetime, if you pay a 1% fee, 28% of your returns will go right into your advisor's pocket.

If you pay a 2% fee, which some
of these ripoff artists do, you will pay over 50% of your returns straight into their pocket. If you have a modest income,
you're starting in your 20s: it could be hundreds of
thousands of dollars. Most finances we've heard
today, it's really simple. Target date fund, automate your money, focus on living your life. But if you really need a financial advisor because things have gotten complicated or you have stepchildren or
all kinds of crazy stuff, fine, pay an hourly fee or a project fee, but never a percentage of
assets under management.

– Since personal finance and investing is really different for everyone, it requires you to do
a bit of extra research to make sure that you're making the best decision for
yourself and your family. So to help you identify what you should and
shouldn't be doing right now, I've linked to some
really helpful resources in the description below this video. There are some flow charts from the personal finance Subreddit that I've found to be very helpful, and I also highly recommend you check out Ramit Sethi's book, "I Will Teach You to Be Rich". It helped me out a ton
when I first got started, and I think it'll help you as well. As you start to dig into
your own personal finances, it's often easy to lose
sight of the big picture: the reason why it's so important to start investing, to begin with. Say somebody just starts getting
into personal finance now, what advice would you give them? – I think money is an
amazing source of joy, and I think when we
typically think about money, it feels like flossing to us.

"Ah, I really should like
do something with my 401k." So I always start by asking people, "What's your rich life?
What do you wanna do? You wanna take a trip to Italy? You wanna take a quarterly camping trip? Awesome. Let's build
that into your rich life. Let's start there." And once you do that,
suddenly you realize, "Oh, my gosh. In order to do
these things that I wanna do, whether it's solo or with a partner, or bring my family and friends with me, maybe I need to have more money." Now you have lots of ways to do it.

You can negotiate your salary.
We've talked about that. You can start a business. But
certainly, you can invest. Every year you wait to invest
is costing you thousands, sometimes tens of thousands of dollars. – Ramit, thank you so much for doing this. If people wanna learn
more about your work, where should we send them? – Come to my YouTube channel.

Come to my podcast,
where I interview couples where they share real numbers. Sometimes they cry. Sometimes they laugh. It's really insightful when
it comes to money psychology. And you can come to my website, iwt.com, and all my other social channels. [Matt] Check the description
out for all the things that we mentioned in this video. Thanks so much for watching. Don't forget to hit subscribe. And turn on notifications
for future videos from me. Thanks for watching..

As found on YouTube

401K to Gold IRA Rollover

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How To Save For Retirement: Suze Orman Shares Her Best Money Advice | TODAY

>>> AND WE’RE BACK WITH OUR >>> AND WE’RE BACK WITH OUR SPECIAL SERIES LIVING LONGER SPECIAL SERIES LIVING LONGER TODAY, EXPLORING WAYS TO LIVER TODAY, EXPLORING WAYS TO LIVER NOT ONLY LONGER BUT BETTER. NOT ONLY LONGER BUT BETTER. >> THIS MORNING WE’RE FOCUSING >> THIS MORNING WE’RE FOCUSING ON YOUR FINANCES AND THE NEW ON YOUR FINANCES AND THE NEW ADVICE EXPERTS ARE GIVING TO ADVICE EXPERTS ARE GIVING TO MAKE YOUR MONEY REALLY LAST. MAKE YOUR MONEY REALLY LAST. >> THE GOOD NEWS AMERICANS ARE >> THE GOOD NEWS AMERICANS ARE LIVING LONGER, WHAT THAT MEANS, LIVING LONGER, WHAT THAT MEANS, A NEW FOCUS ON MAKING YOUR MONEY A NEW FOCUS ON MAKING YOUR MONEY LAST. LAST. >> AS YOU’RE PLANNING FOR YOUR >> AS YOU’RE PLANNING FOR YOUR FUTURE, DON’T UNDERESTIMATE HOW FUTURE, DON’T UNDERESTIMATE HOW LONG YOU’RE GOING TO LIVE. LONG YOU’RE GOING TO LIVE. >> IN FACT, ABOUT ONE OUT OF >> IN FACT, ABOUT ONE OUT OF EVERY FOUR 65-YEAR-OLDS TODAY EVERY FOUR 65-YEAR-OLDS TODAY WILL LIVE PAST 90.

WILL LIVE PAST 90. >> THE OLD ADVICE USED TO BE >> THE OLD ADVICE USED TO BE THAT AS YOU’RE PLANNING FOR THAT AS YOU’RE PLANNING FOR RETIREMENT EXPECT TO LIVE INTO RETIREMENT EXPECT TO LIVE INTO YOUR 80s. YOUR 80s. NOW THE EXPECTATION IS THAT NOW THE EXPECTATION IS THAT YOU’LL HAVE A GOOD CHANCE OF YOU’LL HAVE A GOOD CHANCE OF LIVING INTO YOUR 90s, MAYBE EVEN LIVING INTO YOUR 90s, MAYBE EVEN CELEBRATING YOUR 100th BIRTHDAY. CELEBRATING YOUR 100th BIRTHDAY. >> WITH LONGEVITY CAN COME THE >> WITH LONGEVITY CAN COME THE ADDED STRESS TO SAVE MORE. ADDED STRESS TO SAVE MORE. >> PLANNING FOR THE FUTURE HAS >> PLANNING FOR THE FUTURE HAS BECOME A LOT MORE CHALLENGING BECOME A LOT MORE CHALLENGING AND REALLY THE ONUS IS NOW ON AND REALLY THE ONUS IS NOW ON THE INDIVIDUAL MORE THAN EVER.

THE INDIVIDUAL MORE THAN EVER. >> SO HOW DO WE MAKE SURE WE’RE >> SO HOW DO WE MAKE SURE WE’RE FINANCIALLY PREPARED FOR ALL FINANCIALLY PREPARED FOR ALL THOSE EXTRA YEARS? THOSE EXTRA YEARS? IT’S EASY. IT’S EASY. JUST CALL SUZE ORMAN, A PERSONAL JUST CALL SUZE ORMAN, A PERSONAL FINANCE EXPERT. FINANCE EXPERT. SHE HOSTS SUZE ORMAN’S WOMEN AND SHE HOSTS SUZE ORMAN’S WOMEN AND MANY PODCASTS. MANY PODCASTS. >> WE’RE LIVING LONGER. >> WE’RE LIVING LONGER. THAT’S GREAT, BUT THE BAD NEWS THAT’S GREAT, BUT THE BAD NEWS IS, WE SURVEYED OUR TODAY.COM IS, WE SURVEYED OUR TODAY.COM AUDIENCE.

AUDIENCE. THEY SAID 60% OF THEM FELT LIKE THEY SAID 60% OF THEM FELT LIKE THEY DON’T HAVE THE AMOUNT OF THEY DON’T HAVE THE AMOUNT OF MONEY THAT THEY’RE SAVING RIGHT MONEY THAT THEY’RE SAVING RIGHT NOW THAT, THAT IT WON’T LAST NOW THAT, THAT IT WON’T LAST THEM THROUGH THEIR RETIREMENT. THEM THROUGH THEIR RETIREMENT. >> IF YOU REALLY THINK ABOUT IT, >> IF YOU REALLY THINK ABOUT IT, YOU GUYS, MOST PEOPLE BARELY YOU GUYS, MOST PEOPLE BARELY HAVE THE MONEY TO PAY THEIR HAVE THE MONEY TO PAY THEIR BILLS TODAY LET ALONE SAVE IN BILLS TODAY LET ALONE SAVE IN THEIR MINDS FOR THE FUTURE.

THEIR MINDS FOR THE FUTURE. >> PEOPLE FEEL LIKE THEY CAN’T >> PEOPLE FEEL LIKE THEY CAN’T SAVE. SAVE. >> THEY JUST FEEL THAT WAY, AND >> THEY JUST FEEL THAT WAY, AND THEY HAVE TO CHANGE THAT BECAUSE THEY HAVE TO CHANGE THAT BECAUSE THEY ARE GOING TO SPEND MORE THEY ARE GOING TO SPEND MORE YEARS IN RETIREMENT THAN THEY YEARS IN RETIREMENT THAN THEY EVER DID WORKING IF YOU THINK EVER DID WORKING IF YOU THINK ABOUT IT BECAUSE MOST PEOPLE ABOUT IT BECAUSE MOST PEOPLE THINK THEY’RE GOING TO RETIRE AT THINK THEY’RE GOING TO RETIRE AT 65, MAYBE THEY WORK 30 YEARS, 65, MAYBE THEY WORK 30 YEARS, THEY’RE GOING TO LIVE TO 100 THEY’RE GOING TO LIVE TO 100 POSSIBLY. POSSIBLY.

>> OENGWNING A HOUSE WAS ALWAYS >> OENGWNING A HOUSE WAS ALWAYS THE PLAN, BUT FOR THESE THE PLAN, BUT FOR THESE MILLENNIALS, THEY’RE OPEN ABOUT MILLENNIALS, THEY’RE OPEN ABOUT THE FACT THEY THINK THEY’LL THE FACT THEY THINK THEY’LL NEVER BE ABLE TO AFFORD A HOUSE, NEVER BE ABLE TO AFFORD A HOUSE, NEVER MIND SOME LONGEVITY OR NEVER MIND SOME LONGEVITY OR 401(k).

401(k). >> THAT’S NOT SUCH A HORRIBLE >> THAT’S NOT SUCH A HORRIBLE THING. THING. I DON’T THINK THAT THE KEY TO I DON’T THINK THAT THE KEY TO YOUR RETIREMENT IS OWNING A YOUR RETIREMENT IS OWNING A HOME. HOME. I THINK THE KEY TO YOUR I THINK THE KEY TO YOUR RETIREMENT IS HAVING ENOUGH RETIREMENT IS HAVING ENOUGH MONEY TO PAY WHATEVER YOUR MONEY TO PAY WHATEVER YOUR EXPENSES HAPPEN TO BE SO THE KEY EXPENSES HAPPEN TO BE SO THE KEY IS TO GET RID OF AS MUCH IS TO GET RID OF AS MUCH EXPENSES AS YOU CAN, DON’T HAVE EXPENSES AS YOU CAN, DON’T HAVE DEBT. DEBT. IF YOU DO HAVE A HOME, MAKE SURE IF YOU DO HAVE A HOME, MAKE SURE YOUR MORTGAGE IS PAID OFF BY THE YOUR MORTGAGE IS PAID OFF BY THE TIME YOU RETIRE. TIME YOU RETIRE. THAT WOULD BE MY NUMBER ONE TIP THAT WOULD BE MY NUMBER ONE TIP TO TELL EVERYBODY THEY HAVE GOT TO TELL EVERYBODY THEY HAVE GOT TO DO IF THEY DO OWN A HOME.

TO DO IF THEY DO OWN A HOME. >> WE’RE GOING TO GET INTO THAT. >> WE’RE GOING TO GET INTO THAT. WE HAVE THE THREE W’S. WE HAVE THE THREE W’S. THE FIRST IS WHERE. THE FIRST IS WHERE. WHERE IS THE BEST PLACE TO WHERE IS THE BEST PLACE TO INVEST YOUR MONEY SO IF YOU DO INVEST YOUR MONEY SO IF YOU DO HAVE 30ISH YEARS OF RETIREMENT HAVE 30ISH YEARS OF RETIREMENT YOU’RE SET? YOU’RE SET? >> I’VE SAID FOR A LONG TIME, >> I’VE SAID FOR A LONG TIME, JUST FORGET THE TAX WRITE OFFS JUST FORGET THE TAX WRITE OFFS OF YOUR PRETAX 401(k) OR IRA. OF YOUR PRETAX 401(k) OR IRA. FORGET THOSE NOW, AND IF YOUR FORGET THOSE NOW, AND IF YOUR CORPORATION OFFERS IT, CAN YOU CORPORATION OFFERS IT, CAN YOU CO CO DO A ROTH 401(k) OR A ROTH IRA DO A ROTH 401(k) OR A ROTH IRA WHICH ARE AFTER TAX WHICH ARE AFTER TAX CONTRIBUTIONS.

CONTRIBUTIONS. WHY? WHY? YOU DON’T HAVE TO WORRY WHAT THE YOU DON’T HAVE TO WORRY WHAT THE TAX BRACKETS ARE GOING TO BE 20, TAX BRACKETS ARE GOING TO BE 20, 30, AND 40 YEARS FROM NOW. 30, AND 40 YEARS FROM NOW. I PERSONALLY THINK THEY’RE GOING I PERSONALLY THINK THEY’RE GOING TO SKYROCKET OVER THE YEARS, SO TO SKYROCKET OVER THE YEARS, SO THEREFORE WHAT YOU SEE IS WHAT THEREFORE WHAT YOU SEE IS WHAT YOU GET IN A ROTH IRA OR A ROTH YOU GET IN A ROTH IRA OR A ROTH 401(k). 401(k). AGAIN, IT’S PRETAX VERSUS AFTER AGAIN, IT’S PRETAX VERSUS AFTER TAX, BUT AFTER THAT IT’S TAX TAX, BUT AFTER THAT IT’S TAX DEFERRED VERSUS TAX FREE. DEFERRED VERSUS TAX FREE. IT’S FOR YOUR BENEFICIARIES IN A IT’S FOR YOUR BENEFICIARIES IN A PRETAX ACCOUNT THEY’RE GOING TO PRETAX ACCOUNT THEY’RE GOING TO PAY TOTAL TAXES ON IT. PAY TOTAL TAXES ON IT.

>> LET’S GO BACK TO DEBT FOR A >> LET’S GO BACK TO DEBT FOR A SECOND. SECOND. FOR PEOPLE WHO HAVE STUDENT FOR PEOPLE WHO HAVE STUDENT LOANS, THEY’VE GOT CREDIT CARDS, LOANS, THEY’VE GOT CREDIT CARDS, THEY’VE GOT THAT MORTGAGE. THEY’VE GOT THAT MORTGAGE. HOW DO YOU PRIORITIZE THE DEBT? HOW DO YOU PRIORITIZE THE DEBT? WHAT DO YOU PAY AND WHEN? WHAT DO YOU PAY AND WHEN? >> STUDENT LOAN DEBT IS THE MOST >> STUDENT LOAN DEBT IS THE MOST DANGEROUS DEBT YOU CAN HAVE BAR DANGEROUS DEBT YOU CAN HAVE BAR NONE BECAUSE IN 90% OF THE NONE BECAUSE IN 90% OF THE CASES, 99%, IT IS NOT CASES, 99%, IT IS NOT DISCHARGEABLE IN BANKRUPTCY. DISCHARGEABLE IN BANKRUPTCY. SO THEY HAVE THE LEGAL AUTHORITY SO THEY HAVE THE LEGAL AUTHORITY TO GARNISH YOUR WAGES AND TO TO GARNISH YOUR WAGES AND TO REALLY THEN DECREASE YOUR INCOME REALLY THEN DECREASE YOUR INCOME SO STUDENT LOAN — SO STUDENT LOAN — >> TAKE CARE OF THAT FIRST.

>> TAKE CARE OF THAT FIRST. >> FIRST THAT. >> FIRST THAT. THEN IF YOU HAVE CREDIT CARD THEN IF YOU HAVE CREDIT CARD DEBT THAT NEEDS TO GO BECAUSE DEBT THAT NEEDS TO GO BECAUSE DEBT IS BONDAGE. DEBT IS BONDAGE. YOU GOT TO GET OUT OF THAT. YOU GOT TO GET OUT OF THAT. AND THEN YOU START WORKING, IF AND THEN YOU START WORKING, IF YOU’RE GOING TO STAY IN YOUR YOU’RE GOING TO STAY IN YOUR HOME FOR THE REST OF YOUR LIFE, HOME FOR THE REST OF YOUR LIFE, GET RID OF YOUR MORTGAGE GET RID OF YOUR MORTGAGE PAYMENT.

PAYMENT. >> I WANT TO FOLLOW UP ON THAT. >> I WANT TO FOLLOW UP ON THAT. YOU DON’T WANT TO HAVE A YOU DON’T WANT TO HAVE A MORTGAGE, A LIVE MORTGAGE STILL MORTGAGE, A LIVE MORTGAGE STILL GOING BY THE TIME YOU RETIRE. GOING BY THE TIME YOU RETIRE. WHY? WHY? >> BECAUSE YOUR MORTGAGE PAYMENT >> BECAUSE YOUR MORTGAGE PAYMENT IS YOUR HIGHEST MONTHLY EXPENSE IS YOUR HIGHEST MONTHLY EXPENSE THAT YOU’RE GOING TO HAVE BAR THAT YOU’RE GOING TO HAVE BAR NONE.

NONE. >> WHEN YOU RETIRE. >> WHEN YOU RETIRE. >> IT’S FAR EASIER TO PAY OFF >> IT’S FAR EASIER TO PAY OFF YOUR MORTGAGE THAN TO SAVER THE YOUR MORTGAGE THAN TO SAVER THE MONEY TO GENERATE THE INCOME TO MONEY TO GENERATE THE INCOME TO PAY OFF YOUR MORTGAGE. PAY OFF YOUR MORTGAGE. YOUR GOAL IN RETIREMENT IS TO BE YOUR GOAL IN RETIREMENT IS TO BE TOTALLY DEBT FREE 100% IN TOTALLY DEBT FREE 100% IN RETIREMENT. RETIREMENT. IF YOU DON’T HAVE ENOUGH MONEY, IF YOU DON’T HAVE ENOUGH MONEY, DECREASE YOUR EXPENSES, AND THEN DECREASE YOUR EXPENSES, AND THEN YOUR MONEY WILL GO FURTHER. YOUR MONEY WILL GO FURTHER. >> GOT YOU. >> GOT YOU. >> WHAT ABOUT WHEN, WHEN DO YOU >> WHAT ABOUT WHEN, WHEN DO YOU START? START? I KNOW, WHEN WE’RE BORN WE I KNOW, WHEN WE’RE BORN WE SHOULD START SAVING.

SHOULD START SAVING. >> YOU HAVE THE 200 BUCKS WHEN >> YOU HAVE THE 200 BUCKS WHEN YOU’RE 30. YOU’RE 30. >> PEOPLE ALWAYS THINK THEY HAVE >> PEOPLE ALWAYS THINK THEY HAVE TIME, TIME IS THE MOST IMPORTANT TIME, TIME IS THE MOST IMPORTANT INGREDIENT IN YOUR RETIREMENT INGREDIENT IN YOUR RETIREMENT RECIPE. RECIPE. LET’S JUST SAY YOU HAVE 40 LET’S JUST SAY YOU HAVE 40 YEARS. YEARS. YOU’RE YOUNG. YOU’RE YOUNG. YOU HAVE 40 YEARS UNTIL YOU’RE YOU HAVE 40 YEARS UNTIL YOU’RE GOING TO BE 70. GOING TO BE 70. YOU PUT $200 A MONTH AWAY INTO A YOU PUT $200 A MONTH AWAY INTO A ROTH IRA OR ROTH 401(k).

ROTH IRA OR ROTH 401(k). AVERAGE MARKET RETURNS, DO YOU AVERAGE MARKET RETURNS, DO YOU KNOW THAT YOU WOULD HAVE KNOW THAT YOU WOULD HAVE $1.1 MILLION AT 70, WHICH I $1.1 MILLION AT 70, WHICH I THINK SHOULD BE THE NEW THINK SHOULD BE THE NEW RETIREMENT AGE, BUT YOU WAIT TEN RETIREMENT AGE, BUT YOU WAIT TEN YEARS. YEARS. >> YOU’RE TALKING ABOUT HAVING A >> YOU’RE TALKING ABOUT HAVING A SURPLUS OF 200 BUCK WHEN IS SURPLUS OF 200 BUCK WHEN IS YOU’RE 30. YOU’RE 30. SHOULD YOU TAKE THAT 200 AND SHOULD YOU TAKE THAT 200 AND APPLY IT TO ONE OF THESE OTHER APPLY IT TO ONE OF THESE OTHER THINGS. THINGS. >> YOU NEED TO BE SAVING >> YOU NEED TO BE SAVING ESPECIALLY IN A 401(k), ESPECIALLY IN A 401(k), ESPECIALLY IF THEY MATCH YOUR ESPECIALLY IF THEY MATCH YOUR CONTRIBUTION. CONTRIBUTION. YOU PUT IN A DOLLAR, THEY GIVE YOU PUT IN A DOLLAR, THEY GIVE YOU $0.50. YOU $0.50. I DON’T CARE IF YOU HAVE ANY I DON’T CARE IF YOU HAVE ANY MONEY. MONEY. YOU CAN’T PASS UP FREE MONEY.

YOU CAN’T PASS UP FREE MONEY. IF YOU STARTED PUTTING, JUST IF YOU STARTED PUTTING, JUST LET’S SAY $200 A MONTH AWAY, AND LET’S SAY $200 A MONTH AWAY, AND YOU NOW ONLY HAVE 30 YEARS LEFT YOU NOW ONLY HAVE 30 YEARS LEFT VERSUS 40, YOU’D ONLY HAVE LIKE VERSUS 40, YOU’D ONLY HAVE LIKE $400,000. $400,000. YOU JUST BLEW $700,000 BECAUSE YOU JUST BLEW $700,000 BECAUSE YOU WAITED TEN YEARS. YOU WAITED TEN YEARS. IT WAS ONLY A $24,000 DIFFERENCE IT WAS ONLY A $24,000 DIFFERENCE IN THOSE TEN YEARS. IN THOSE TEN YEARS. BUT THE TEN YEARS, THE SOONER BUT THE TEN YEARS, THE SOONER YOU BEGIN, THE BETTER YOU’LL BE. YOU BEGIN, THE BETTER YOU’LL BE. >> JUST TO CARSON’S POINT. >> JUST TO CARSON’S POINT. IF I HAVE 200 BUCKS TO SPARE,KY IF I HAVE 200 BUCKS TO SPARE,KY CAN EITHER PAY OFF MY CREDIT CAN EITHER PAY OFF MY CREDIT CARD DEBT AND START SAVING IN A CARD DEBT AND START SAVING IN A ROTH IRA, WHAT WOULD MY CHOICE ROTH IRA, WHAT WOULD MY CHOICE BE? BE? >> YOUR CHOICE THERE IS TO PAY >> YOUR CHOICE THERE IS TO PAY OFF YOUR CREDIT CARD DEBT.

OFF YOUR CREDIT CARD DEBT. >> IF YOU DON’T HAVE MUCH MONEY >> IF YOU DON’T HAVE MUCH MONEY YOU MAY BE BEHIND ON YOUR CREDIT YOU MAY BE BEHIND ON YOUR CREDIT CARD PAYMENTS, AND YOUR INTEREST CARD PAYMENTS, AND YOUR INTEREST RATES ARE 15, 18%. RATES ARE 15, 18%. THAT’S A GUARANTEED RETURN. THAT’S A GUARANTEED RETURN. WHEN YOU PAY OFF YOUR CREDIT WHEN YOU PAY OFF YOUR CREDIT CARD DEBT, YOU’RE GUARANTEEING A CARD DEBT, YOU’RE GUARANTEEING A FANTASTIC RETURN. FANTASTIC RETURN. >> WHAT IS THE ONE SMALL THING >> WHAT IS THE ONE SMALL THING YOU WOULD TELL OUR VIEWERS YOU WOULD TELL OUR VIEWERS BEFORE WE GO? BEFORE WE GO? >> HERE’S WHAT’S REALLY >> HERE’S WHAT’S REALLY IMPORTANT. IMPORTANT. MANY PEOPLE HAVE ADVICE FOR ALL MANY PEOPLE HAVE ADVICE FOR ALL OF YOU. OF YOU. SOMETIMES THAT ADVICE IS GOOD SOMETIMES THAT ADVICE IS GOOD FOR THE PERSON GIVING THE FOR THE PERSON GIVING THE ADVICE, AND SOMETIMES IT’S GOOD ADVICE, AND SOMETIMES IT’S GOOD FOR THE PERSON RECEIVING IT.

FOR THE PERSON RECEIVING IT. MY ADVICE IS THIS, PLEASE DON’T MY ADVICE IS THIS, PLEASE DON’T DO ANYTHING THAT YOU DON’T DO ANYTHING THAT YOU DON’T UNDERSTAND. UNDERSTAND. IT IS BETTER TO DO NOTHING THAN IT IS BETTER TO DO NOTHING THAN TO DO SOMETHING YOU DO NOT TO DO SOMETHING YOU DO NOT UNDERSTAND BECAUSE SOMETIMES YOU UNDERSTAND BECAUSE SOMETIMES YOU CAN DO SOMETHING AND IT BLOWS CAN DO SOMETHING AND IT BLOWS ALL YOUR MONEY, AND SO IF IT ALL YOUR MONEY, AND SO IF IT DOESN’T FEEL RIGHT TO YOU, YOU DOESN’T FEEL RIGHT TO YOU, YOU HAVE TO TRUST YOURSELF MORE THAN HAVE TO TRUST YOURSELF MORE THAN YOU TRUST OTHERS.

YOU TRUST OTHERS. IT’S YOUR MONEY, AND WHAT IT’S YOUR MONEY, AND WHAT HAPPENS TO YOUR MONEY IS GOING HAPPENS TO YOUR MONEY IS GOING TO DIRECTLY AFFECT THE QUALITY TO DIRECTLY AFFECT THE QUALITY OF YOUR LIFE, NOT MY LIFE. OF YOUR LIFE, NOT MY LIFE. NOT ANYBODY ELSE’S LIFE, SO IF NOT ANYBODY ELSE’S LIFE, SO IF YOU REALLY WANT TO BE POWERFUL YOU REALLY WANT TO BE POWERFUL IN LIFE, YOU HAVE TO BE POWERFUL IN LIFE, YOU HAVE TO BE POWERFUL OVER YOUR OWN MONEY.

OVER YOUR OWN MONEY. >> THAT’S GOOD ADVICE. >> THAT’S GOOD ADVICE. IN SOME CASES FINANCIALLY DOING IN SOME CASES FINANCIALLY DOING NOTHING IS BETTER THAN MAKING A NOTHING IS BETTER THAN MAKING A CHOICE TO YOUR DETRIMENT. CHOICE TO YOUR DETRIMENT. >> NEVER TALK YOURSELF INTO >> NEVER TALK YOURSELF INTO TRUSTING ANYONE. TRUSTING ANYONE. YOU WALK INTO A FINANCIAL YOU WALK INTO A FINANCIAL ADVISER’S OFFICE AND THEY FEEL ADVISER’S OFFICE AND THEY FEEL LIKE THEY KNOW WHAT YOU’RE LIKE THEY KNOW WHAT YOU’RE DOING. DOING. THEY MUST KNOW, YOU DON’T KNOW THEY MUST KNOW, YOU DON’T KNOW AND YOU BELIEVE THEM. AND YOU BELIEVE THEM. SOMETIMES THEY GIVE GREAT AED SOMETIMES THEY GIVE GREAT AED VICE AND SOMETIMES THEY GIVE VICE AND SOMETIMES THEY GIVE ADVICE THAT’S NOT SO MUCH. ADVICE THAT’S NOT SO MUCH.

>> THAT STUFF’S TRUE IN >> THAT STUFF’S TRUE IN ANYTHING, RIGHT? ANYTHING, RIGHT? >> WHEN YOU THINK ABOUT IT, >> WHEN YOU THINK ABOUT IT, SAVANNAH, YOUR MONEY AND YOUR SAVANNAH, YOUR MONEY AND YOUR LIFE ARE ONE. LIFE ARE ONE. WHO YOU ARE AND WHAT YOU HAVE IS WHO YOU ARE AND WHAT YOU HAVE IS ONE. ONE. IT’S YOU’RE THE ONE WHO EARNS IT’S YOU’RE THE ONE WHO EARNS IT.

IT. YOU’RE THE ONE WHO INVESTS IT. YOU’RE THE ONE WHO INVESTS IT. YOU’RE THE ONE WHO SAVES IT, AND YOU’RE THE ONE WHO SAVES IT, AND YOU’RE THE ONE WHO’S GOING TO YOU’RE THE ONE WHO’S GOING TO LIVE. LIVE. >> WE’LL JUST GO TO YOU. >> WE’LL JUST GO TO YOU. YOU’RE OUR TRUSTED SOURCE. YOU’RE OUR TRUSTED SOURCE. >> COME ON, EVERYBODY, COME JOIN.

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How To Save For Retirement: Suze Orman Shares Her Best Money Advice | TODAY

>>> AND WE’RE BACK WITH OUR >>> AND WE’RE BACK WITH OUR SPECIAL SERIES LIVING LONGER SPECIAL SERIES LIVING LONGER TODAY, EXPLORING WAYS TO LIVER TODAY, EXPLORING WAYS TO LIVER NOT ONLY LONGER BUT BETTER. NOT ONLY LONGER BUT BETTER. >> THIS MORNING WE’RE FOCUSING >> THIS MORNING WE’RE FOCUSING ON YOUR FINANCES AND THE NEW ON YOUR FINANCES AND THE NEW ADVICE EXPERTS ARE GIVING TO ADVICE EXPERTS ARE GIVING TO MAKE YOUR MONEY REALLY LAST. MAKE YOUR MONEY REALLY LAST. >> THE GOOD NEWS AMERICANS ARE >> THE GOOD NEWS AMERICANS ARE LIVING LONGER, WHAT THAT MEANS, LIVING LONGER, WHAT THAT MEANS, A NEW FOCUS ON MAKING YOUR MONEY A NEW FOCUS ON MAKING YOUR MONEY LAST.

LAST. >> AS YOU’RE PLANNING FOR YOUR >> AS YOU’RE PLANNING FOR YOUR FUTURE, DON’T UNDERESTIMATE HOW FUTURE, DON’T UNDERESTIMATE HOW LONG YOU’RE GOING TO LIVE. LONG YOU’RE GOING TO LIVE. >> IN FACT, ABOUT ONE OUT OF >> IN FACT, ABOUT ONE OUT OF EVERY FOUR 65-YEAR-OLDS TODAY EVERY FOUR 65-YEAR-OLDS TODAY WILL LIVE PAST 90. WILL LIVE PAST 90. >> THE OLD ADVICE USED TO BE >> THE OLD ADVICE USED TO BE THAT AS YOU’RE PLANNING FOR THAT AS YOU’RE PLANNING FOR RETIREMENT EXPECT TO LIVE INTO RETIREMENT EXPECT TO LIVE INTO YOUR 80s. YOUR 80s. NOW THE EXPECTATION IS THAT NOW THE EXPECTATION IS THAT YOU’LL HAVE A GOOD CHANCE OF YOU’LL HAVE A GOOD CHANCE OF LIVING INTO YOUR 90s, MAYBE EVEN LIVING INTO YOUR 90s, MAYBE EVEN CELEBRATING YOUR 100th BIRTHDAY.

CELEBRATING YOUR 100th BIRTHDAY. >> WITH LONGEVITY CAN COME THE >> WITH LONGEVITY CAN COME THE ADDED STRESS TO SAVE MORE. ADDED STRESS TO SAVE MORE. >> PLANNING FOR THE FUTURE HAS >> PLANNING FOR THE FUTURE HAS BECOME A LOT MORE CHALLENGING BECOME A LOT MORE CHALLENGING AND REALLY THE ONUS IS NOW ON AND REALLY THE ONUS IS NOW ON THE INDIVIDUAL MORE THAN EVER.

THE INDIVIDUAL MORE THAN EVER. >> SO HOW DO WE MAKE SURE WE’RE >> SO HOW DO WE MAKE SURE WE’RE FINANCIALLY PREPARED FOR ALL FINANCIALLY PREPARED FOR ALL THOSE EXTRA YEARS? THOSE EXTRA YEARS? IT’S EASY. IT’S EASY. JUST CALL SUZE ORMAN, A PERSONAL JUST CALL SUZE ORMAN, A PERSONAL FINANCE EXPERT. FINANCE EXPERT. SHE HOSTS SUZE ORMAN’S WOMEN AND SHE HOSTS SUZE ORMAN’S WOMEN AND MANY PODCASTS. MANY PODCASTS. >> WE’RE LIVING LONGER. >> WE’RE LIVING LONGER.

THAT’S GREAT, BUT THE BAD NEWS THAT’S GREAT, BUT THE BAD NEWS IS, WE SURVEYED OUR TODAY.COM IS, WE SURVEYED OUR TODAY.COM AUDIENCE. AUDIENCE. THEY SAID 60% OF THEM FELT LIKE THEY SAID 60% OF THEM FELT LIKE THEY DON’T HAVE THE AMOUNT OF THEY DON’T HAVE THE AMOUNT OF MONEY THAT THEY’RE SAVING RIGHT MONEY THAT THEY’RE SAVING RIGHT NOW THAT, THAT IT WON’T LAST NOW THAT, THAT IT WON’T LAST THEM THROUGH THEIR RETIREMENT. THEM THROUGH THEIR RETIREMENT. >> IF YOU REALLY THINK ABOUT IT, >> IF YOU REALLY THINK ABOUT IT, YOU GUYS, MOST PEOPLE BARELY YOU GUYS, MOST PEOPLE BARELY HAVE THE MONEY TO PAY THEIR HAVE THE MONEY TO PAY THEIR BILLS TODAY LET ALONE SAVE IN BILLS TODAY LET ALONE SAVE IN THEIR MINDS FOR THE FUTURE. THEIR MINDS FOR THE FUTURE. >> PEOPLE FEEL LIKE THEY CAN’T >> PEOPLE FEEL LIKE THEY CAN’T SAVE. SAVE. >> THEY JUST FEEL THAT WAY, AND >> THEY JUST FEEL THAT WAY, AND THEY HAVE TO CHANGE THAT BECAUSE THEY HAVE TO CHANGE THAT BECAUSE THEY ARE GOING TO SPEND MORE THEY ARE GOING TO SPEND MORE YEARS IN RETIREMENT THAN THEY YEARS IN RETIREMENT THAN THEY EVER DID WORKING IF YOU THINK EVER DID WORKING IF YOU THINK ABOUT IT BECAUSE MOST PEOPLE ABOUT IT BECAUSE MOST PEOPLE THINK THEY’RE GOING TO RETIRE AT THINK THEY’RE GOING TO RETIRE AT 65, MAYBE THEY WORK 30 YEARS, 65, MAYBE THEY WORK 30 YEARS, THEY’RE GOING TO LIVE TO 100 THEY’RE GOING TO LIVE TO 100 POSSIBLY.

POSSIBLY. >> OENGWNING A HOUSE WAS ALWAYS >> OENGWNING A HOUSE WAS ALWAYS THE PLAN, BUT FOR THESE THE PLAN, BUT FOR THESE MILLENNIALS, THEY’RE OPEN ABOUT MILLENNIALS, THEY’RE OPEN ABOUT THE FACT THEY THINK THEY’LL THE FACT THEY THINK THEY’LL NEVER BE ABLE TO AFFORD A HOUSE, NEVER BE ABLE TO AFFORD A HOUSE, NEVER MIND SOME LONGEVITY OR NEVER MIND SOME LONGEVITY OR 401(k). 401(k). >> THAT’S NOT SUCH A HORRIBLE >> THAT’S NOT SUCH A HORRIBLE THING. THING. I DON’T THINK THAT THE KEY TO I DON’T THINK THAT THE KEY TO YOUR RETIREMENT IS OWNING A YOUR RETIREMENT IS OWNING A HOME. HOME. I THINK THE KEY TO YOUR I THINK THE KEY TO YOUR RETIREMENT IS HAVING ENOUGH RETIREMENT IS HAVING ENOUGH MONEY TO PAY WHATEVER YOUR MONEY TO PAY WHATEVER YOUR EXPENSES HAPPEN TO BE SO THE KEY EXPENSES HAPPEN TO BE SO THE KEY IS TO GET RID OF AS MUCH IS TO GET RID OF AS MUCH EXPENSES AS YOU CAN, DON’T HAVE EXPENSES AS YOU CAN, DON’T HAVE DEBT.

DEBT. IF YOU DO HAVE A HOME, MAKE SURE IF YOU DO HAVE A HOME, MAKE SURE YOUR MORTGAGE IS PAID OFF BY THE YOUR MORTGAGE IS PAID OFF BY THE TIME YOU RETIRE. TIME YOU RETIRE. THAT WOULD BE MY NUMBER ONE TIP THAT WOULD BE MY NUMBER ONE TIP TO TELL EVERYBODY THEY HAVE GOT TO TELL EVERYBODY THEY HAVE GOT TO DO IF THEY DO OWN A HOME.

TO DO IF THEY DO OWN A HOME. >> WE’RE GOING TO GET INTO THAT. >> WE’RE GOING TO GET INTO THAT. WE HAVE THE THREE W’S. WE HAVE THE THREE W’S. THE FIRST IS WHERE. THE FIRST IS WHERE. WHERE IS THE BEST PLACE TO WHERE IS THE BEST PLACE TO INVEST YOUR MONEY SO IF YOU DO INVEST YOUR MONEY SO IF YOU DO HAVE 30ISH YEARS OF RETIREMENT HAVE 30ISH YEARS OF RETIREMENT YOU’RE SET? YOU’RE SET? >> I’VE SAID FOR A LONG TIME, >> I’VE SAID FOR A LONG TIME, JUST FORGET THE TAX WRITE OFFS JUST FORGET THE TAX WRITE OFFS OF YOUR PRETAX 401(k) OR IRA. OF YOUR PRETAX 401(k) OR IRA. FORGET THOSE NOW, AND IF YOUR FORGET THOSE NOW, AND IF YOUR CORPORATION OFFERS IT, CAN YOU CORPORATION OFFERS IT, CAN YOU CO CO DO A ROTH 401(k) OR A ROTH IRA DO A ROTH 401(k) OR A ROTH IRA WHICH ARE AFTER TAX WHICH ARE AFTER TAX CONTRIBUTIONS.

CONTRIBUTIONS. WHY? WHY? YOU DON’T HAVE TO WORRY WHAT THE YOU DON’T HAVE TO WORRY WHAT THE TAX BRACKETS ARE GOING TO BE 20, TAX BRACKETS ARE GOING TO BE 20, 30, AND 40 YEARS FROM NOW. 30, AND 40 YEARS FROM NOW. I PERSONALLY THINK THEY’RE GOING I PERSONALLY THINK THEY’RE GOING TO SKYROCKET OVER THE YEARS, SO TO SKYROCKET OVER THE YEARS, SO THEREFORE WHAT YOU SEE IS WHAT THEREFORE WHAT YOU SEE IS WHAT YOU GET IN A ROTH IRA OR A ROTH YOU GET IN A ROTH IRA OR A ROTH 401(k). 401(k). AGAIN, IT’S PRETAX VERSUS AFTER AGAIN, IT’S PRETAX VERSUS AFTER TAX, BUT AFTER THAT IT’S TAX TAX, BUT AFTER THAT IT’S TAX DEFERRED VERSUS TAX FREE. DEFERRED VERSUS TAX FREE. IT’S FOR YOUR BENEFICIARIES IN A IT’S FOR YOUR BENEFICIARIES IN A PRETAX ACCOUNT THEY’RE GOING TO PRETAX ACCOUNT THEY’RE GOING TO PAY TOTAL TAXES ON IT.

PAY TOTAL TAXES ON IT. >> LET’S GO BACK TO DEBT FOR A >> LET’S GO BACK TO DEBT FOR A SECOND. SECOND. FOR PEOPLE WHO HAVE STUDENT FOR PEOPLE WHO HAVE STUDENT LOANS, THEY’VE GOT CREDIT CARDS, LOANS, THEY’VE GOT CREDIT CARDS, THEY’VE GOT THAT MORTGAGE. THEY’VE GOT THAT MORTGAGE. HOW DO YOU PRIORITIZE THE DEBT? HOW DO YOU PRIORITIZE THE DEBT? WHAT DO YOU PAY AND WHEN? WHAT DO YOU PAY AND WHEN? >> STUDENT LOAN DEBT IS THE MOST >> STUDENT LOAN DEBT IS THE MOST DANGEROUS DEBT YOU CAN HAVE BAR DANGEROUS DEBT YOU CAN HAVE BAR NONE BECAUSE IN 90% OF THE NONE BECAUSE IN 90% OF THE CASES, 99%, IT IS NOT CASES, 99%, IT IS NOT DISCHARGEABLE IN BANKRUPTCY. DISCHARGEABLE IN BANKRUPTCY. SO THEY HAVE THE LEGAL AUTHORITY SO THEY HAVE THE LEGAL AUTHORITY TO GARNISH YOUR WAGES AND TO TO GARNISH YOUR WAGES AND TO REALLY THEN DECREASE YOUR INCOME REALLY THEN DECREASE YOUR INCOME SO STUDENT LOAN — SO STUDENT LOAN — >> TAKE CARE OF THAT FIRST.

>> TAKE CARE OF THAT FIRST. >> FIRST THAT. >> FIRST THAT. THEN IF YOU HAVE CREDIT CARD THEN IF YOU HAVE CREDIT CARD DEBT THAT NEEDS TO GO BECAUSE DEBT THAT NEEDS TO GO BECAUSE DEBT IS BONDAGE. DEBT IS BONDAGE. YOU GOT TO GET OUT OF THAT. YOU GOT TO GET OUT OF THAT. AND THEN YOU START WORKING, IF AND THEN YOU START WORKING, IF YOU’RE GOING TO STAY IN YOUR YOU’RE GOING TO STAY IN YOUR HOME FOR THE REST OF YOUR LIFE, HOME FOR THE REST OF YOUR LIFE, GET RID OF YOUR MORTGAGE GET RID OF YOUR MORTGAGE PAYMENT. PAYMENT. >> I WANT TO FOLLOW UP ON THAT. >> I WANT TO FOLLOW UP ON THAT. YOU DON’T WANT TO HAVE A YOU DON’T WANT TO HAVE A MORTGAGE, A LIVE MORTGAGE STILL MORTGAGE, A LIVE MORTGAGE STILL GOING BY THE TIME YOU RETIRE. GOING BY THE TIME YOU RETIRE. WHY? WHY? >> BECAUSE YOUR MORTGAGE PAYMENT >> BECAUSE YOUR MORTGAGE PAYMENT IS YOUR HIGHEST MONTHLY EXPENSE IS YOUR HIGHEST MONTHLY EXPENSE THAT YOU’RE GOING TO HAVE BAR THAT YOU’RE GOING TO HAVE BAR NONE.

NONE. >> WHEN YOU RETIRE. >> WHEN YOU RETIRE. >> IT’S FAR EASIER TO PAY OFF >> IT’S FAR EASIER TO PAY OFF YOUR MORTGAGE THAN TO SAVER THE YOUR MORTGAGE THAN TO SAVER THE MONEY TO GENERATE THE INCOME TO MONEY TO GENERATE THE INCOME TO PAY OFF YOUR MORTGAGE. PAY OFF YOUR MORTGAGE. YOUR GOAL IN RETIREMENT IS TO BE YOUR GOAL IN RETIREMENT IS TO BE TOTALLY DEBT FREE 100% IN TOTALLY DEBT FREE 100% IN RETIREMENT. RETIREMENT. IF YOU DON’T HAVE ENOUGH MONEY, IF YOU DON’T HAVE ENOUGH MONEY, DECREASE YOUR EXPENSES, AND THEN DECREASE YOUR EXPENSES, AND THEN YOUR MONEY WILL GO FURTHER. YOUR MONEY WILL GO FURTHER. >> GOT YOU. >> GOT YOU. >> WHAT ABOUT WHEN, WHEN DO YOU >> WHAT ABOUT WHEN, WHEN DO YOU START? START? I KNOW, WHEN WE’RE BORN WE I KNOW, WHEN WE’RE BORN WE SHOULD START SAVING. SHOULD START SAVING. >> YOU HAVE THE 200 BUCKS WHEN >> YOU HAVE THE 200 BUCKS WHEN YOU’RE 30. YOU’RE 30. >> PEOPLE ALWAYS THINK THEY HAVE >> PEOPLE ALWAYS THINK THEY HAVE TIME, TIME IS THE MOST IMPORTANT TIME, TIME IS THE MOST IMPORTANT INGREDIENT IN YOUR RETIREMENT INGREDIENT IN YOUR RETIREMENT RECIPE.

RECIPE. LET’S JUST SAY YOU HAVE 40 LET’S JUST SAY YOU HAVE 40 YEARS. YEARS. YOU’RE YOUNG. YOU’RE YOUNG. YOU HAVE 40 YEARS UNTIL YOU’RE YOU HAVE 40 YEARS UNTIL YOU’RE GOING TO BE 70. GOING TO BE 70. YOU PUT $200 A MONTH AWAY INTO A YOU PUT $200 A MONTH AWAY INTO A ROTH IRA OR ROTH 401(k). ROTH IRA OR ROTH 401(k). AVERAGE MARKET RETURNS, DO YOU AVERAGE MARKET RETURNS, DO YOU KNOW THAT YOU WOULD HAVE KNOW THAT YOU WOULD HAVE $1.1 MILLION AT 70, WHICH I $1.1 MILLION AT 70, WHICH I THINK SHOULD BE THE NEW THINK SHOULD BE THE NEW RETIREMENT AGE, BUT YOU WAIT TEN RETIREMENT AGE, BUT YOU WAIT TEN YEARS.

YEARS. >> YOU’RE TALKING ABOUT HAVING A >> YOU’RE TALKING ABOUT HAVING A SURPLUS OF 200 BUCK WHEN IS SURPLUS OF 200 BUCK WHEN IS YOU’RE 30. YOU’RE 30. SHOULD YOU TAKE THAT 200 AND SHOULD YOU TAKE THAT 200 AND APPLY IT TO ONE OF THESE OTHER APPLY IT TO ONE OF THESE OTHER THINGS. THINGS. >> YOU NEED TO BE SAVING >> YOU NEED TO BE SAVING ESPECIALLY IN A 401(k), ESPECIALLY IN A 401(k), ESPECIALLY IF THEY MATCH YOUR ESPECIALLY IF THEY MATCH YOUR CONTRIBUTION. CONTRIBUTION. YOU PUT IN A DOLLAR, THEY GIVE YOU PUT IN A DOLLAR, THEY GIVE YOU $0.50. YOU $0.50. I DON’T CARE IF YOU HAVE ANY I DON’T CARE IF YOU HAVE ANY MONEY. MONEY. YOU CAN’T PASS UP FREE MONEY. YOU CAN’T PASS UP FREE MONEY. IF YOU STARTED PUTTING, JUST IF YOU STARTED PUTTING, JUST LET’S SAY $200 A MONTH AWAY, AND LET’S SAY $200 A MONTH AWAY, AND YOU NOW ONLY HAVE 30 YEARS LEFT YOU NOW ONLY HAVE 30 YEARS LEFT VERSUS 40, YOU’D ONLY HAVE LIKE VERSUS 40, YOU’D ONLY HAVE LIKE $400,000.

$400,000. YOU JUST BLEW $700,000 BECAUSE YOU JUST BLEW $700,000 BECAUSE YOU WAITED TEN YEARS. YOU WAITED TEN YEARS. IT WAS ONLY A $24,000 DIFFERENCE IT WAS ONLY A $24,000 DIFFERENCE IN THOSE TEN YEARS. IN THOSE TEN YEARS. BUT THE TEN YEARS, THE SOONER BUT THE TEN YEARS, THE SOONER YOU BEGIN, THE BETTER YOU’LL BE. YOU BEGIN, THE BETTER YOU’LL BE. >> JUST TO CARSON’S POINT. >> JUST TO CARSON’S POINT. IF I HAVE 200 BUCKS TO SPARE,KY IF I HAVE 200 BUCKS TO SPARE,KY CAN EITHER PAY OFF MY CREDIT CAN EITHER PAY OFF MY CREDIT CARD DEBT AND START SAVING IN A CARD DEBT AND START SAVING IN A ROTH IRA, WHAT WOULD MY CHOICE ROTH IRA, WHAT WOULD MY CHOICE BE? BE? >> YOUR CHOICE THERE IS TO PAY >> YOUR CHOICE THERE IS TO PAY OFF YOUR CREDIT CARD DEBT.

OFF YOUR CREDIT CARD DEBT. >> IF YOU DON’T HAVE MUCH MONEY >> IF YOU DON’T HAVE MUCH MONEY YOU MAY BE BEHIND ON YOUR CREDIT YOU MAY BE BEHIND ON YOUR CREDIT CARD PAYMENTS, AND YOUR INTEREST CARD PAYMENTS, AND YOUR INTEREST RATES ARE 15, 18%. RATES ARE 15, 18%. THAT’S A GUARANTEED RETURN. THAT’S A GUARANTEED RETURN. WHEN YOU PAY OFF YOUR CREDIT WHEN YOU PAY OFF YOUR CREDIT CARD DEBT, YOU’RE GUARANTEEING A CARD DEBT, YOU’RE GUARANTEEING A FANTASTIC RETURN. FANTASTIC RETURN. >> WHAT IS THE ONE SMALL THING >> WHAT IS THE ONE SMALL THING YOU WOULD TELL OUR VIEWERS YOU WOULD TELL OUR VIEWERS BEFORE WE GO? BEFORE WE GO? >> HERE’S WHAT’S REALLY >> HERE’S WHAT’S REALLY IMPORTANT. IMPORTANT. MANY PEOPLE HAVE ADVICE FOR ALL MANY PEOPLE HAVE ADVICE FOR ALL OF YOU.

OF YOU. SOMETIMES THAT ADVICE IS GOOD SOMETIMES THAT ADVICE IS GOOD FOR THE PERSON GIVING THE FOR THE PERSON GIVING THE ADVICE, AND SOMETIMES IT’S GOOD ADVICE, AND SOMETIMES IT’S GOOD FOR THE PERSON RECEIVING IT. FOR THE PERSON RECEIVING IT. MY ADVICE IS THIS, PLEASE DON’T MY ADVICE IS THIS, PLEASE DON’T DO ANYTHING THAT YOU DON’T DO ANYTHING THAT YOU DON’T UNDERSTAND. UNDERSTAND. IT IS BETTER TO DO NOTHING THAN IT IS BETTER TO DO NOTHING THAN TO DO SOMETHING YOU DO NOT TO DO SOMETHING YOU DO NOT UNDERSTAND BECAUSE SOMETIMES YOU UNDERSTAND BECAUSE SOMETIMES YOU CAN DO SOMETHING AND IT BLOWS CAN DO SOMETHING AND IT BLOWS ALL YOUR MONEY, AND SO IF IT ALL YOUR MONEY, AND SO IF IT DOESN’T FEEL RIGHT TO YOU, YOU DOESN’T FEEL RIGHT TO YOU, YOU HAVE TO TRUST YOURSELF MORE THAN HAVE TO TRUST YOURSELF MORE THAN YOU TRUST OTHERS.

YOU TRUST OTHERS. IT’S YOUR MONEY, AND WHAT IT’S YOUR MONEY, AND WHAT HAPPENS TO YOUR MONEY IS GOING HAPPENS TO YOUR MONEY IS GOING TO DIRECTLY AFFECT THE QUALITY TO DIRECTLY AFFECT THE QUALITY OF YOUR LIFE, NOT MY LIFE. OF YOUR LIFE, NOT MY LIFE. NOT ANYBODY ELSE’S LIFE, SO IF NOT ANYBODY ELSE’S LIFE, SO IF YOU REALLY WANT TO BE POWERFUL YOU REALLY WANT TO BE POWERFUL IN LIFE, YOU HAVE TO BE POWERFUL IN LIFE, YOU HAVE TO BE POWERFUL OVER YOUR OWN MONEY.

OVER YOUR OWN MONEY. >> THAT’S GOOD ADVICE. >> THAT’S GOOD ADVICE. IN SOME CASES FINANCIALLY DOING IN SOME CASES FINANCIALLY DOING NOTHING IS BETTER THAN MAKING A NOTHING IS BETTER THAN MAKING A CHOICE TO YOUR DETRIMENT. CHOICE TO YOUR DETRIMENT. >> NEVER TALK YOURSELF INTO >> NEVER TALK YOURSELF INTO TRUSTING ANYONE. TRUSTING ANYONE. YOU WALK INTO A FINANCIAL YOU WALK INTO A FINANCIAL ADVISER’S OFFICE AND THEY FEEL ADVISER’S OFFICE AND THEY FEEL LIKE THEY KNOW WHAT YOU’RE LIKE THEY KNOW WHAT YOU’RE DOING. DOING. THEY MUST KNOW, YOU DON’T KNOW THEY MUST KNOW, YOU DON’T KNOW AND YOU BELIEVE THEM.

AND YOU BELIEVE THEM. SOMETIMES THEY GIVE GREAT AED SOMETIMES THEY GIVE GREAT AED VICE AND SOMETIMES THEY GIVE VICE AND SOMETIMES THEY GIVE ADVICE THAT’S NOT SO MUCH. ADVICE THAT’S NOT SO MUCH. >> THAT STUFF’S TRUE IN >> THAT STUFF’S TRUE IN ANYTHING, RIGHT? ANYTHING, RIGHT? >> WHEN YOU THINK ABOUT IT, >> WHEN YOU THINK ABOUT IT, SAVANNAH, YOUR MONEY AND YOUR SAVANNAH, YOUR MONEY AND YOUR LIFE ARE ONE. LIFE ARE ONE. WHO YOU ARE AND WHAT YOU HAVE IS WHO YOU ARE AND WHAT YOU HAVE IS ONE. ONE. IT’S YOU’RE THE ONE WHO EARNS IT’S YOU’RE THE ONE WHO EARNS IT. IT. YOU’RE THE ONE WHO INVESTS IT. YOU’RE THE ONE WHO INVESTS IT. YOU’RE THE ONE WHO SAVES IT, AND YOU’RE THE ONE WHO SAVES IT, AND YOU’RE THE ONE WHO’S GOING TO YOU’RE THE ONE WHO’S GOING TO LIVE. LIVE. >> WE’LL JUST GO TO YOU.

>> WE’LL JUST GO TO YOU. YOU’RE OUR TRUSTED SOURCE. YOU’RE OUR TRUSTED SOURCE. >> COME ON, EVERYBODY, COME JOIN.

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Retirement coaching and tips

WELL, IF RETIREMENT HAS YOU DREAMING OF TROPICAL VACATIONS. I KNOW IT DOES FOR ME. YOU'RE NOT ALONE. BUT THERE'S SO MUCH MORE TO CONSIDER. THAT'S RIGHT. PLEASE WELCOME BACK. LIFE TRANSITION COACH. >> LORETTA SAF WERE AT FIRST OF ALL, THANK YOU FOR BEING HERE. WHEN IT COMES TO RETIREMENT. THERE ARE A LOT OF OTHER THINGS TO CAN TO CONSIDER WHEN IT COMES TO, YOU KNOW, NON-FINANCIAL FINS AND 5 OF THEM. YOU. >> WRITE ABOUT IN YOUR WORK IN YOUR BOOK. >> THAT YOU. I HANDBOOK BECAUSE, YOU KNOW, WITH EVERYTHING THAT WE GET NOWADAYS. WE GET A HANDBOOK THAT GOES ALONG WITH IT. AND WE DON'T READ HANDBOOK FOR RETIREMENT. AND SO I DECIDED TO MAKE ONE AND THERE ARE 5 TIPS THAT I SORRY THERE 10 5 TODAY.

YOUR CHEAT. THERE'S 10. OKAY. THE FIRST ONE MOVING GET MOVIN. ABSOLUTELY. IF I COULD HAVE A TALK TO YOU 5 YEARS AGO, I WOULD HAVE SAID START TRAINING. NOW THIS IS TRAINING FOR RETIREMENT BECAUSE JUST WHEN YOU HEAR TODAY ABOUT ALL OF THE TRAVEL ISSUES THAT ARE GOING ON. YOU BETTER BE IN SOME GOOD SHAPE TO PUT UP WITH WHAT YOU FIND AT THE AIRPORT OR THOSE LITTLE ONES WHO ARE RUNNING TO YOU AND WANT TO BE HELD AND PLAY GAMES AND ALL THAT SO YEARS AND THE PHYSICALLY RIGHT.

ABSOLUTELY IS LIKELY FIT AND IT'S VERY IMPORTANT AND YOU DON'T WANT TO WAIT UNTIL I MEAN, YOU CAN YOU RETIRE YOU CAN THEN START SOMETHING THAT WHY NOT START AT LEAST A WALKING PROGRAM. NOW LOVE THAT. YES, WE DID TALK A LOT ABOUT WHAT AND THEN TRYING TO WALK AND GET MORE. ALL RIGHT. THE SECOND TIP THE SECOND TIP IS TO DISCUSS RETIREMENT WITH YOUR SIGNIFICANT OTHER. AND THIS IS SO IMPORTANT BECAUSE SO OFTEN YOU HAVE AN IDEA OF WHAT YOU SEE IN RETIREMENT AND YOUR SIGNIFICANT OTHER HAS AN ENTIRELY DIFFERENT IDEA. ONE OF THE THINGS I DO RECOMMEND IS A BOOK CALLED THE COUPLE'S RETIREMENT PUZZLE THERE IS A REFERENCE IN MY LITTLE HANDBOOK ABOUT WHAT TO SAY AND HOW TO SAY IT AND HOW TO SIGN. AND IN THIS PARTICULAR BOOK. BUT IT'S IMPORTANT BECAUSE SITUATIONS WHERE IT'S THE HE SAID SHE SAID SITUATION THAT, YOU WE'RE GOING TO PLANT GARDENS AND WHAT HE'S GOING TO PAINT THE ROOMS AND IT'S ALL GOING TO BE SO LOVELY IN OUR HOUSE AND HE LOOKS AT HER LIKE WHAT ARE YOU TALKING DO.

I'M GOING TO PLAY TENNIS AND, YOU KNOW, PICKLEBALL OR WHATEVER. SO IT'S IMPORTANT TO BE ON THE SAME PAGE. AND IF YOU DO THAT AHEAD OF TIME, THEN YOU CAN CERTAINLY FIND IT TO BE A LITTLE EASIER TO JUST SLIDE RIGHT INTO IN YOUR OPINION, IF YOU DO HAVE DIFFERENT IDEAS OF RETIREMENT. ARE THERE WAYS TO KIND OF MAKE THEM BOTH WORK.

>> IT'S WHAT I 3 IS KIND OF WHAT YOU ARE DOING. YEAH. YEAH. SOMETHING FOR THE GREATER GOOD. I LOVE PEOPLE TO START PRACTICING DOING THINGS FOR THE GREATER GOOD AND SO WHAT DOES THAT MEAN IF YOU'RE NOT CONSCIOUSLY SOMEBODY WHO THINKS ABOUT THESE THINGS START DOING IT. SAY SOMETHING NICE TO THE CASE YEAR. LET SOMEBODY ELSE IN MIND WITH YOU IN FRONT OF TRAFFIC JUST BE CANNED. IT'S IT REALLY IS SOMETHING THAT BECOMES SECOND NATURE AND WHAT YOU FIND IS THAT YOU PAY IT FORWARD, BECOMES BEING PAID BECAUSE WAS NICE TO YOU, YOU'RE GOING TO BE NICE TO THE NEXT GUY. >> AND THAT'S SO IMPORTANT BECAUSE IT'S JUST WHAT YOU WANT TO DO IN RETIREMENT, YOU WANT PEOPLE TO JUST BE CAN LIKE THAT. IT'S JUST GOING TO SHIFT YOUR PERSPECTIVE A LIFE, TOO. WHEN YOU START KIND OF NOTICING WHEN OTHER PEOPLE DON'T HAVE OR HOW YOU CAN HELP OTHER PEOPLE ABSOLUTELY LIKE THAT DOESN'T COST DOESN'T KNOW THIS IS SOMETHING I KNOW THAT CAN BE HARD FOR FOR PROFESSIONALS THAT ARE STILL WORKING.

YOU SAY HAVE FRIENDS IN AND OUT OF WORK. >> SO IMPORTANT. IT'S SO IMPORTANT AND. >> BECAUSE WHAT HAPPENS IS, YOU KNOW, YOU LEAVE THE OFFICE OR THE FULL-TIME JOB AND YOU THINK, OH, I'LL GO HAVE LUNCH WITH BILL AND TED AND EMILY, YOU KNOW, BECAUSE THEY'LL BE MISSING ME AND THEY'RE NOT WHILE THEY MIGHT WANT TO LIKE GET TOGETHER. BUT NO, THEY DON'T WANT TO HAVE LUNCH WITH YOU. SO YOU HAVE TO HIM A NEW TRIAL AS IT WERE THAT YOU BELONG TO. AND IN ORDER TO DO THAT, YOU CAN START LOOK AT WHAT YOUR INTERESTS ARE NOW MAKE TIME FOR THOSE INTERESTS BECAUSE IT'S VERY IMPORTANT THAT WHEN YOU FIND ALL THIS TIME IN RETIREMENT THAT YOU NEED TO BE DOING SOMETHING. AND IF YOU'VE ALREADY CREATED THAT GROUP OF PHOTOGRAPHY BUFFS THAT LOVE OF HISTORY BUFFS, MAYBE YOU WANT TO LEARN A LANGUAGE.

AND I UNDERSTAND THAT THOSE CEOS WHO HAND NO TIME ALLOWED HEARD IT ALL, BELIEVE ME THAT LIKE AT A U.S. SAID, YOU KNOW, SO DO YOU HAVE ANY HOBBIES. WHAT DO YOU LIKE TO DO AND THE CEO WILL LOOK AT ME LIKE HOBBIES, DO YOU THINK I HAVE TIME FOR LIKE, OK, WAIT. LET'S NOT CALL IT OBVIOUSLY LET'S JUST CALL IT PATIENTS INTERESTS. YES. WHAT ARE YOU GOOD AT WHAT HE LIKED TO DO. MAKE TIME FOR IT NOW SO THAT YOU GET TO KNOW SOME OF THE PEOPLE WHO HAVE SIMILAR INTERESTS SO THAT WHEN YOU'RE LOOKING FOR THINGS TO DO. YOU WILL HAVE THOSE PEOPLE THAT YOU CAN TURN SO IMPORTANT AND SO IS THE LAST ONE, RIGHT.

THE NUMBER 5, I SHOULD SAY. NOT THE LAST ONE 5 BE POSITIVE AND I'VE HEARD THE ALL THE STORIES ABOUT PEOPLE WHO SAY, WELL, I'M JUST OF A NEGATIVE NATURE RESEARCH HAS SHOWN THAT 50% OF OUR PERSONALITIES ARE PREDETERMINE. 40% IS CHOOSE WITH SOMETHING THAT WE CHOOSE. IT'S OUR CHOICE AND 10% IS RANDOM. SO IF YOU LOOK AT THOSE NUMBERS, YOU SEE YOU CAN CHOOSE TO BE POSITIVE. MAYBE YOU HAVE TO PUSH YOURSELF A LITTLE BIT TO GET A LOT FURTHER. IF YOU FIND THAT CLAIMS TO BE HALF FULL. IT'S REALLY NOT FUN TO BE SPENT WITH SOMEBODY WHO'S NEGATIVE AND I'M SURE WE ALL SAY THAT YOU COME HOME FROM A SOCIAL EVENT AND YOU SAY SHOULD HAVE STAYED HOME, IT WOULD HAVE BEEN A LOT MORE FUN.

WHY DID I CHOOSE THOSE PEOPLE TO BE NOT YET KNOW DOES IT DRAGS YOU SOMETIMES IF IT'S A CONSTANT. >> THANK YOU SO MUCH OKAY. SO EVERYBODY THAT WAS ONLY 5. THERE ARE 5 MORE SO YOU GUYS HAVE TO GET THIS BOOK LEARN ALL 10 YOU CAN E-MAIL LORETTA FOR MORE INFORMATION ON THE RENT AT COACHING WITH LORETTA DOT COM. YOU CAN ALSO GO ON HER WEBSITE TO FIND OUT MORE AS WELL.

OR EVEN BOOKER FOR SESSION. IF YOU'RE A THINKING RETIREMENT IS COMING ON UP AND YOU NEED SOME .

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I asked a personal finance expert how to invest.

– Investing, when most people think of it, they imagine day trading, stock tickers, and people screaming at each other. But apart from what you may have heard, investing doesn't need to be complicated, overwhelming, or even boring. The basics are actually quite simple. And once you get them down, you could make millions of
dollars in your lifetime. With the help of my friend
and personal finance expert, Ramit Sethi, we're gonna
ditch the generalities and get into the specifics
covering how to start investing, what accounts you should open up, and all the things that you
should and shouldn't be doing when it comes to investing. – This is a critical mistake people make. And it will cost you hundreds
of thousands of dollars. – This video is sponsored by Squarespace. More on them later.

My early twenties weren't exactly my most productive financial years. I remember counting
pennies in line at Wendy's to get their $1 chicken sandwich. And if you're in a similar situation, it might feel impossible to even start thinking about investing, and that's because you probably shouldn't. Before you open up your
first investment account, there are two big steps
that you need to take that most personal finance
experts can agree on.

First, you need to build
up an emergency fund. You can start with a month of savings, but eventually, you should get it up to three to six months of basic expenses. We're talking about the bare minimum: rent, utilities, groceries, and gas. What is the absolute minimum
that you need to get by on? And second, you should
pay off all of your debt except for your house. You specifically wanna focus on the debt with the highest interest rates, so those credit cards,
student loans, and car loans that are 8%, 9%, 10% or
more should be tackled as soon as you've got your
emergency fund filled. The power of taking these
two steps alone are huge when it comes to your
personal finance journey. And they will likely take years of saving, patience, frustration, and sacrifice, especially if you graduated with $100,000 of student debt like I did. But once you pay off your last loan, you'll finally be ready to start investing in the stock market. Warren Buffett once famously said, "My wealth has come from a
combination of living in America, some lucky genes, and compound interest." Compound interest is the reason you need to start investing
as soon as you possibly can.

– What we know is that over the course of a long period of time, we're talking 40, 50, 60 years, the market tends to return about 7% to 8%. That's per year. So people go, "Well, is that
a lot? Is that a little?" Doesn't mean anything to people. What that means is that your money will essentially double every
10 years if you do nothing. Let's say you invest $5,000
a year from age 25 to 65. At an annual return of 8%, you'll have a total of
nearly $1.3 million. If you chose not to invest and instead stash the money
away in your sock drawer, you would have $200,000.

That's a difference that
will easily change your life. – So the minute that I paid
off my last student loan, I knew that I wanted to start investing, but I still had so many questions. How do I open an account?
What company do I use? How much should I invest?
What stocks do I invest in? It was truly overwhelming. There are a number of different accounts that you could open up with
varying fees and tax advantages.

My guess is if you've thought
about investing before but haven't taken the leap, this is where you've
gotten stuck in the weeds. So let's break down exactly
what you should be doing from the minute that you
decide to start investing. In the U.S., if your
employer has a 401k plan and offers matching contributions, then this is the first account that you should start investing in, and you should probably
take advantage of this deal even before you finish
paying off all of your debt. Put as much money into this 401k plan as your employer will match. After that, the first account you should open up is a Roth IRA. If you meet the income requirements, there are some great tax
advantages to Roth IRAs, and it's why most personal
finance experts recommend it. But what companies should
you trust with your money? – There are a few companies I love. I personally use Vanguard. I have no financial affiliation with them, but that's where I suggested
my wife open her account.

They're super low-cost. They don't get you with a bunch
of fees. That's important. Fidelity's also very good.
Schwab is also very good. All three of these are great. Some people ask about
robo-advisors. It's really popular. I think they're fine. If you are coming to me, you're saying, "Ramit, should I do Wealthfront
or Betterment or Vanguard?" There is a slight difference in fees. You know, you might be
paying about 0.3% more for Wealthfront or Betterment. In the grand scheme, it's not
the worst thing you could do. Personally, for me, I
don't think it's worth it. I don't mind that Vanguard
has a worse interface because I hardly log in.

It's not important to me. And I want a company that
is focused on low fees. – So, to keep things simple, if you haven't opened an account already, just go with Vanguard. They've got really low fees, give you all the investing
options you need, and they make it really
easy to get started. Okay, now that you've created an account, what do you do next? Well, you actually need
to invest your money, and regardless of what your
brother-in-law told you, investing your life savings into Bitcoin is probably a terrible option. I think when a lot of people think about investing in the stock market, they think about, like, you said, Tesla. They think about investing
in specific companies. Some of them go, "Ramit, why would I invest
in the stock market? 7%? That's for losers. Bitcoin, you can average
50% to 60% a year." I go, "All right, let's start
with some basic math here, which you missed the
day they taught that." If you're getting 60% returns per year, pretty soon you have more money than all the money in the universe, and there are essentially no investments that are consistently
getting you 60% returns.

Oftentimes, really what people are doing with these highly speculative investments is they are admitting I have lost the game of money for myself and the only chance I
believe I have to win is to buy a lottery ticket. And that is not how you invest.
That's not how you do it. – So, instead of investing
your money into one company, one stock, or one risky bet, you need to diversify by investing in something called an index fund. An index fund is a type of investment that pulls together stocks, bonds, and other securities into
one diversified portfolio. While there is always a risk
when it comes to investing, this reduces the overall amount of risk that you need to take. What are the investments
that are safe in the long run but that will also give us a return where we can actually have
a living when we retire? – I love a target date retirement fund. You simply pick the year
that you're gonna retire. Basically, the year you're gonna be 65.

And you just put all your money into it. It's automatically
diversified, automatically. It includes stocks, bonds. It includes domestic,
large caps, all that, and you just put as much as you can. They charge essentially no fees. This is not a financial
advisor that's charging you 1%. It's just a computer
that's doing it for you. People almost find it unbelievable. They go, "Ramit, you're telling me that I just pick one target date fund, and I invest in that same fund
in my 401k, in my Roth IRA, even in a taxable brokerage account?" For the most part, yes. For the vast majority of people, a target date fund is a fantastic thing. If I had, like, if I were
telling a brother or sister, family member, and they're 25
years old, what should I do? I'd be like, put every
extra dollar you've got in a target date fund and
get on with your life.

– I wanna share the exact
index fund that I invest in as well as the strategy you need to know once you start investing your
money into the stock market. But first, a quick word from
my sponsor, Squarespace. So I chose to build my first website on Squarespace eight years
ago for three main reasons. Their templates are beautiful. It's really simple to make changes, and you don't need to know any code. Let me show you exactly how easy it is. Let's say you wanna create a blog documenting your journey out of debt and towards financial freedom. You get started by
going to squarespace.com and buying your first domain name, something like mattonthemoney.com. Next up, you grab a template
that matches your vision.

This one's perfect. And then the fun part. You start creating by simply dragging and dropping your content, set your brand colors, add your logo, and take that terrifying step of writing and publishing
your very first blog post. I honestly think that everybody
should have a website. It can help you build an
audience, land a better job, and share your rags to
riches story with the world. Visit squarespace.com
today for a free trial. Then, when you're ready to launch, go to squarespace.com/mattdavella to save 10% off your first
purchase of a website or domain. The brands that I choose to
partner with on this channel help me to invest back into my videos so I can create better content every week.

If you wanna get started and
make a website for yourself, click the link in the description below. Thanks for considering. I
forgot to turn the camera off. All right, so let me show you the exact target retirement
fund that I invest into when it comes to Vanguard. So this is it. It's the Vanguard target
retirement 2050 fund. Obviously, if you plan on
retiring earlier or later, you would pick a different fund, but this is because I plan
on retiring around 2050.

You can see, over the past 10 years, it's performing at 8.36% annually. After you've actually invested your hard-earned money
into the stock market, the hard part comes, waiting. How you manage your
emotions and risk tolerance is one of the most important aspects to building wealth over time because growth isn't a straight line. – It goes like this. It's up. It's down. Some years it's up 30%.
Some years it's down 6%. This year happens to be down.

But you have to remember
that it was way up for the last 10-plus years. – Most people just can't stomach the twists and turns
that the market takes, and over the past year, things have been looking a bit dicey. – But it does seem we are kind of slipping into a recession, doesn't it? – People are gonna feel a lot of pain. – Concerns, of course, about
the potential recession, they continue to loom. – In a poll for the Wall Street Journal, economist put the probability of a recession in the
next 12 months at 61%. – And the fear is that we
are much more likely now heading toward a recession. – What would you say to somebody who sees this happening right now and wants to pull their
money out of their 401k? – If you do this, you are doomed.

It's one of the worst financial
decisions you can make to try to pull your money out. Let me explain. It's called timing the market when you try to pull it
out at the right time and then get back in at the right time. There's several problems with this. First of all, you don't know if it's gonna go lower or higher. And people go, "Well,
dude, it's so obvious." It's actually not obvious. People said it was obvious
in 2008, 9, 10, 16, 20, 22. It's not obvious. It can
go up. It can go down. The market does what
the market's gonna do. You cannot predict it. Second, even if you pulled
it out at a great time where things are really
high, and then it goes low, you need to be right a second time to put it in at the right time.

The solution is to simply invest every single month consistently. Doesn't matter whether it's up. Doesn't matter whether it's
down because you don't know where that fits in the overall scheme. Every month you set up an
automation in your Vanguard, Fidelity, Schwab account, and it might be $100, it might
be $1000, it might be $5,000. It's just continually going in. So when it's expensive,
you're buying fewer shares. When it's cheaper, you're
buying more shares. Over time, that strategy
called dollar cost averaging tends to dramatically
outperform timing the market. – I remember the day that
I first invested money into the stock market through Vanguard. I knew that I wasn't supposed
to be checking these accounts. I had read books by Ramit
and others that told me so, but I couldn't help it. I refreshed that thing every single day, tracking the changes and
watching as it went up and down. But eventually, I decided
to stop obsessing, and I just let the investments do their work in the background, and it was the best decision that I made. Now I check in every six months
to see how things are going.

And over the past eight years, on average, I've returned about 8% annually. If you invested $5,000 per
year over the same time period, you'd have made $13,000 in interest. And if you remember that graph
from earlier in this video, if you keep investing, your money will soon grow exponentially. That is, of course, unless you make one
fatal investing mistake. – This is a critical mistake people make, and it will cost you hundreds
of thousands of dollars. A lot of you watching have parents who are using a financial advisor. I want you to pull out
your phone right now. I want you to text mommy and
daddy, and I want you to say, "Hey, how much are you paying Chet, our neighborhood financial advisor?" Chet, when he gets the question, is going to go into a
very long monologue about, "Well, you know, we're
here to protect your money. I wanna keep you safe, and
I'm always looking over it, and blah, I'm making decisions.

(bleep) Chet is ripping your parents off. Chet is charging: I can almost guarantee, a 1% assets under management fee. Now, you go, "1%, what's the big deal? That's not bad to have
somebody look over it." Over the course of your lifetime, if you pay a 1% fee, 28% of your returns will go right into your advisor's pocket. If you pay a 2% fee, which some
of these ripoff artists do, you will pay over 50% of your returns straight into their pocket.

If you have a modest income,
you're starting in your 20s: it could be hundreds of
thousands of dollars. Most finances we've heard
today, it's really simple. Target date fund, automate your money, focus on living your life. But if you really need a financial advisor because things have gotten complicated or you have stepchildren or
all kinds of crazy stuff, fine, pay an hourly fee or a project fee, but never a percentage of
assets under management. – Since personal finance and investing is really different for everyone, it requires you to do
a bit of extra research to make sure that you're making the best decision for
yourself and your family.

So to help you identify what you should and
shouldn't be doing right now, I've linked to some
really helpful resources in the description below this video. There are some flow charts from the personal finance Subreddit that I've found to be very helpful, and I also highly recommend you check out Ramit Sethi's book, "I Will Teach You to Be Rich". It helped me out a ton
when I first got started, and I think it'll help you as well.

As you start to dig into
your own personal finances, it's often easy to lose
sight of the big picture: the reason why it's so important to start investing, to begin with. Say somebody just starts getting
into personal finance now, what advice would you give them? – I think money is an
amazing source of joy, and I think when we
typically think about money, it feels like flossing to us. "Ah, I really should like
do something with my 401k." So I always start by asking people, "What's your rich life?
What do you wanna do? You wanna take a trip to Italy? You wanna take a quarterly camping trip? Awesome. Let's build
that into your rich life. Let's start there." And once you do that,
suddenly you realize, "Oh, my gosh. In order to do
these things that I wanna do, whether it's solo or with a partner, or bring my family and friends with me, maybe I need to have more money." Now you have lots of ways to do it.

You can negotiate your salary.
We've talked about that. You can start a business. But
certainly, you can invest. Every year you wait to invest
is costing you thousands, sometimes tens of thousands of dollars. – Ramit, thank you so much for doing this. If people wanna learn
more about your work, where should we send them? – Come to my YouTube channel. Come to my podcast,
where I interview couples where they share real numbers. Sometimes they cry. Sometimes they laugh. It's really insightful when
it comes to money psychology.

And you can come to my website, iwt.com, and all my other social channels. [Matt] Check the description
out for all the things that we mentioned in this video. Thanks so much for watching. Don't forget to hit subscribe. And turn on notifications
for future videos from me. Thanks for watching..

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Retirement coaching and tips

IT'' S IMPORTANT TO BE ON THE SAME PAGE.AND IF YOU DO THAT AHEAD OF TIME, AFTER THAT YOU CAN DEFINITELY FIND IT TO BE A LITTLE EASIER TO JUST SLIDE RIGHT INTO IN YOUR POINT OF VIEW, IF YOU DO HAVE VARIOUS SUGGESTIONS OF RETIRED LIFE. LET ' S NOT CALL IT OBVIOUSLY LET ' S JUST CALL IT INDIVIDUALS RATE OF INTERESTS. IF YOU ' RE A BELIEVING RETIRED LIFE IS COMING ON UP AS WELL AS YOU NEED SOME.

THAT'' S. AND ALSO IN ORDER TO DO THAT, YOU TIN START LOOK AT WHAT YOUR PASSIONS ARE CURRENTLY MAKE TIME FOR THOSE RATE OF INTERESTS BECAUSE IT ' S REALLY IMPORTANT THAT WHEN YOU DISCOVER ALL THIS TIME IN RETIRED LIFE THAT YOU NEED TO BE DOING SOMETHING. ALLOW ' S NOT CALL IT OBVIOUSLY LET ' S JUST CALL IT CLIENTS RATE OF INTERESTS. NOT THE LAST ONE 5 BE FAVORABLE AND ALSO I'' VE HEARD THE ALL THE STORIES CONCERNING INDIVIDUALS THAT SAY, WELL, I'' M SIMPLY OF An ADVERSE NATURE RESEARCH STUDY HAS SHOWN THAT 50% OF OUR PERSONALITIES ARE PREDETERMINE.40% IS PICK WITH SOMETHING THAT WE CHOOSE. IF YOU ' RE A BELIEVING RETIRED LIFE IS COMING ON UP AS WELL AS YOU NEED SOME.

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The Dark Secret Behind the Royal Family’s Wealth | Empires of Dirt

From the 16th century onwards, the British monarchy was main to the facility, growth, as well as maintenance of the British Empire, the biggest the world has ever seen. After Britain got into Jamaica in 1655, the Royal African Company was established up by Royal Charter under King Charles II. Before their arrival in Jamaica, over 100 public figures authorized an open letter calling on the royal family members as well as the British government to offer an apology as well as pay adjustments.

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