$36 Million In Savings?!

$36 Million In Savings?!

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[HectorSnipes]

I'm preparing to retire at 68 and seeking advice on managing my 401k distributions. I'm concerned about whether my savings will suffice for retirement, given that my current contributions are lower. Should I consider taking a lump sum payment and paying the upfront 20% tax, or would it be wiser to opt for periodic distributions and spread out the tax payments over several years? I'm looking for guidance on the most tax-efficient and beneficial option for my long-term financial situation.

[andrewmeadville]

All good until the bank goes under and you only get 250k back.

[israelgonzalez]

He was smart enough to know he had better options than a savings account but left it there anyway to learn more what to do with it. That’s pretty smart. 👏 you’re not expected to know everything. He went to the right place seeking mentorship/advice.

[spitfiretwo]

I had a client that was a really well known rockstar from the 80s and it was a kick having him come into our office every couple weeks. He’d deposit these huge checks from companies paying him royalties or other sponsorships - like one from Topps for a card he and his band were on or something. I rarely talked to him about his craft unless it naturally came up but he’d usually have his young kids and he’d be showing them how to do the banking and how to write checks and whatnot. Dude was all about family so that’s usually what our conversations were about. And a really cool thing was he’d have boatloads of money sitting in savings accounts but he would always pull up in the same 10 year old minivan. Just a cool dude who knew what was really important in life.

[michaelmillett]

Sounds like Kirk Cousins. Couple years in the league at 26 with Washington and there’s been stories about him being super humble driving a minivan.

[simplyfit]

That story gets better every time Dave tells it. It used to only be 15 million.

[theresatoyota-yqsk]

Honestly makes me happy this “kid” has his money. Used van staying humble

[garyblade]

At that age, with that kind of discipline and willingness to learn, his financial future is secure.

[buroakridgehomestead]

I’m almost certain he’s talking about Kirk Cousins. Fact pattern match.

[nunyabiznez]

I graduated from high school in 1979. That same week our head janitor retired. In fact at the graduation ceremony he was given an award and we all cheered him on. He retired at 75 having begun his career in 1922 at the age of 18 right after his own graduation from that high school that year. The high school I graduated from was actually the third building since he graduated. We found out afterwards that his savings plan was to simply save change. At least that's the way it sounded. But what he really did was he bought rolls of mint coins from the bank continuously since 1922. He bought cents, nickels, dimes, quarters, halves and dollars. He bought them by the roll. He lived very frugally and never got married. He also lived in a house his ancestor built. That ancestor was friends with one of the pilgrims. That should give you an idea of the age of the house. He decided to finally have his house wired for electricity during WWII. He didn't own a TV or radio. He also tended to work a lot of over time. He didn't have to work that hard. He didn't pay rent, his house was only about 400 square feet and he used firewood grown on his property to heat the place. He got a tax break from the town for maintaining an historic property. So he spent more than half of his pay every week since 1922 buying rolls of mint coins, mostly silver. He changed to buying old rolls and searching them for silver coins in 1965 when the coins were changed from silver to nickel clad. Then when it became legal to buy gold by the ounce again he bought gold.

We know this because it seems he explained all that to his niece who had the story published in the newspaper she was a part owner of.

She found over 4500 rolls of coins, mostly mint silver coins in foot lockers stacked up in a hole in his bedroom floor. She also found almost 500 one ounce gold ingots in one of those foot lockers. He stopped all this when he retired so all that was accumulated as of 1979. For 27 years he lived by selling the silver coins incrementally, the last few years on eBay, prior to eBay coming into existence he took them to coin dealers a few coins or rolls at a time as he needed to pay bills or buy things. I don't know the exact number but rumors are that his niece inherited millions. The gold alone today would be worth around a million. I heard that his first paycheck was for $16 in 1922. This goes to show that you just never know what will end up being a good investment.

[grantv]

If only we could all have that problem.

[keithb]

All professional athletes should go meet with Dave's team. So many of them would never blow their money and set their kids and grandkids up for life.

[rosedewittbukater]

dude, i love Dave. he's so straight with people.

"the only thing you did wrong was put it in savings, you get a hug"
lol

[dru]

This is one of the more fruitful endeavors Dave can take on. Cheers for helping these young athletes understand money and being responsible with it. I think our society would improve tremendously if more of our young entertainers got to work with the Ramsey team and take up Dave's rules and values.

[tylerfranz]

Damn, you’re telling me I need 36 million to get a hug now a days? Smh inflation…

[TGameDev]

Wish i had that kind of a "mistake" 😂

[untouchablex]

Even if he invested it and it became $100 million, it made no difference to him. $36 million is PLENTY if you don't live lavishly and recklessly.

[drwayne_carter]

That $36m is melting away at 7% every year due to inflation

[dickhammerbusch]

Great problem to have! That dude sounded like he lived at or below his means compared to his NFL peers who go for the "ice", exotic cars, extra large house, and "instagram wives" who go bankrupt and are out if the league before their contract term ends

[lancel]

He’s extremely right about you win on a couple of hands……get hot and get out, don’t let them take it back