How To Use The 4% Rule In 2023 To Retire In 10 years! ( NOT CLICKBAIT)

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3 important videos you need to watch:

About this channel:

Hi, my name is Alex and my biggest passion is personal finance. The purpose of this youtube channel is to provide free knowledge about how to manage your money properly.
If you want to learn more about how to earn more money, how to manage debt, how to make more passive income, stock market investing, real estate investing, and other personal finance topics, then you have come to the right place.
My final goal is to help you achieve financial independence, and during your journey, you will also see how money management will teach you how to become a millionaire and also how to retire early.
I will provide many videos about investing for beginners because investing and building wealth is a topic everyone should master.

DISCLAIMER: These videos are not financial advice. They are purely for entertainment purposes.

[levelupyourincome]

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[enubisgaming]

Great video but there are always two BIG expenses that will keep people working.. Kids and Health Insurance. Without an employer health care plan the average person will pay $400 a month just for the premiums..
Not unobtainable but health insurance has a tendency to bite wallets hard in the US

[TheFirstRealChewy]

50% - 70%? That's tough. We at least have a budget and we're keeping lifestyle inflation a bay. We're hoping our salary increases over the years, plus we're looking into side hustles. With the way the economy is going, just holding a job is where we are at.😢

[brytonrobinson]

I'm 23 single, no kids, and make about 30k a year let's break this down. first taxes. No looking up the exact brackets but let's say 10-12% overall. Assuming 10% even that's 3000 off the top. 27000 left. Okay now rent in my area is cheap and I have a hell of a deal at 500 a month including water and trash. For a year that's 6000. 21000 left. Electricity well just say 125 a month to keep it easy. 19500 left. Food I honestly don't keep enough track and need a better estimate but let's use 250$ a month. 16500 left. Phone bill which is required for my job. 75 a month. 15600 left. Car insurance best deal I can get for liability is about 120 a month being under 25 and having noone who's insurance I can be on (both my parents are dead, have been since 18). 14, 160 left. Had owned a car but it's totaled after hitting a deer recently so I'm working on getting a new one so I'm putting back more for that than the insurance was. You can see the issues with saving 50 of my income already and that's not every pretty necessary expense. And yes I work 40 hours a week and yea I need a better job but considering I'm already walking 2 miles too and from work everyday now. it's the best thing I can get in a reasonable distance until I get my hands on transportation. Not really feasible unless you're fortunate enough to have a lot of help

[ErrorOptik]

That’s going to be a very rough life until it pays off. Hats off to those who do it. I am doing the 75% 15% 10%

[RafaJack]

"If you will live like no one else, later you can live like no one else"

[knoxtfo]

Its a great strategy but flaws are you can lose more compared to a fixed..love the content!! Keep it up man!! 😊

[kevinfestner]

I can do 53 pct, and am doing, which means 14 yrs. You can grow into this. By starting at a lower amount to save.

[robertswift]

i currently have 50% going in my 401k and roth ira at work with company match, , , , im in it for the long term

[renck]

Don’t forget to calculate future expenses and inflation.

[kokalti]

In what world can you live on $1200 a month? Have you seen the price of groceries? These clowns are living in the La La Land

[roberttaylor]

Thank you for debunking the ultra conservative "4% rule". If someone follows that, they will die with a huge pile of money. At this point, I'm still at a crossroad regarding whether or not to liquidate my $138k stock portfolio. What’s the best way to take advantage of this current market?

[SatyaSanathani]

Great video. Require severe lifestyle changes for young couples. But this is doable. With current economy and inflation, it can get tough.

[tirevelation]

Can you do the same with a dividend etf that pays a ~4% yield?

[Emrico]

Remember, stock exchange may have disastrous bear markets which lasts about 10-15 years.

[Hawksforever]

This is great knowledge...however the investment strategy by itself is FAR behind the total value of investing it in an IUL...that's right. I said investing in life insurance. Well, not investing technically, but owning life insurance that is BASED on investments like the stock market. Key to it is the fact that it grows AND is able to have the money be used TAX FREE. Why? Because you don't take the money out. You borrow it. From yourself. Or rather, from the Life insurance company's general fund. And it never actually has to be paid back. Why not? Because the life insurance company will get their money back either way. Either you'll pay it back with a small amount of interest and fee charged (which will be DWARFED by the earnings of the account), or the company will deduct the outstanding balance of the loan from your death benefit when you die. Either way is fine. Why you say?

Won't the amount you're borrowing lessen the amount you're able to earn with in the account? NO! Say you have $100, 000 in your account. You rolled it over from a 401K you were done with because you left that job either for retirement via the plan in the video above, or because you went to another company/job/whatever. Now, you've decided you'd like to invest some money into real estate. You take $50, 000 to put a down payment on the place you wish to purchase. How much do you have left in the account to earn with? You say $50, 000! NOPE. It's $100, 000 still. How?? You didn't WITHDRAW it from the account, only took a LOAN against it. Money's still there, churning away and bringing in friends to your account.
So now you're gonna do what with the loan? You're gonna go buy that house with the $50, 000. It's a $200, 000 house so you needed $40, 000 to put down and $10, 000 to fix it up. You do so. Now, you've got a fixed up house which is worth $280, 000 and you have yourself a rental property which you're renting out for $2500/month. Your tenant is making your mortgage payments for you along with your homeowner's insurance premium but you still profit a bit at the end of the month. Which goes back into your IUL policy. Not so much because you feel the need to pay off the loan, but because you want the size of your overall account to GROW.
Think of it like your bank account. You borrowed money from yourself - well really from the "bank" which is actually your life insurance company. But they're not itchy about when you're gonna pay it back. Your earnings are well more than the fees they charge monthly for your actual insurance death benefit. So the policy is actually paying for itself. Again, all growing TAX FREE. It's the only investment in existence that the IRS says is able to do this legally. AND you can pass it on to your estate or heirs tax free, avoiding the probate (death tax/inheritance tax) which can be really high if you happen to live in the "wrong State." It's literally the most versatile investment product you can buy. It's liquid and extremely safe. Why is it so safe you ask?

Well, the separate account that earns and puts all your little green soldiers to work for you...is only BASED on the stock market, etc. Your Life Insurance company credits you with earnings based on the market. But your principle is never LEAVING your acct. How can this be? Let's say you have $1 million in your account. You earn at a 5% minimum guaranteed rate. But you think that this year is gonna be a much better year for the markets overall.

So you say to your agent/financial planner: "I think I want to have that money be based on...the whole S&P 500...or the Tech sector...or Gold...whatever you choose. And they take that interest that you would be credited with to your account, and they buy Stock OPTIONS with it. Now the Options will do well if the stocks they're based on do well/if a lot of people want to buy those stocks. You're charging rent with those options in essence (if you don't understand this concept, maybe youtube/google how options work - you're only charging other people for the OPTION to have a chance to buy those stocks. Could be If the options don't do well, then they expire worthless. And you never lost anything. Except the money that would've been credited to you as interest earnings. BUT NOT THE PRINCIPLE. Still got a $Million. That's never gonna go down like your 401k did. Or your IRA. It's growing tax free. And on that million...you could easily EARN $100K per year by just rinsing and repeating with earning off that $Million. Or you could double your account size if you just don't touch the money in the account. And the best part is still that Uncle SAM....CAN'T TOUCH A DIME!!!!

[andrewmorales]

What about Investing in $5 monthly stocks dividends companies invest in twelve different five dollars monthly stocks dividends companies invest in 4% high yields what if my goal is 25k a month but my monthly expensive isn't that much money but what if I want to make $25k a month.

[caracal]

that's actually the opposite of what Warren Buffett does.
Though he does say other people who aren't knowledgeable enough (or have enough time) to study individual stocks should just buy the market. Also this is 'nice' in theory but living rest of life on $1500-2000 a month is not that fun, better to save 20 years or more, still retire early but actually have a good retirement/freedom not just surviving.

[hantu]

How is 70% save possible even with deductions such as tax etc you left how much...

[AmeLeAnn]

Hello, you made a mistake. You should save 25 times, not 30 times. Saving 30 times gives you 3.333%, not 4%.