How much do you need for retirement? Financially speaking. Today, I'm going to
dive in. I'm going to show you the simplest math. I'm going to share with you what the
experts are saying and what they should be saying that they're not so we can get
things corrected and help you create a more realistic financial wealth plan.
I remember being in college. And I got my
job, my wife got a job and she started contributing to a 401K. The only time we
ever had a 401K. And the company was doing this match and the money was kind
of getting put in there and she worked at this company for a couple of years
and then she stopped. And then I remember we were kind of looking at all of our
assets. And we found out that we had this little 401K and then that we had like
$1500. And I remember thinking to myself, "My wife worked at her job for 2 years,
and accumulated $1500 in a 401K?" How is this mindset ever supposed to become
anything? And today is we have this conversation about "How much do you need
for retirement?" I'm going to warn you right now, there is a gap between society's
plan and what's needed to actually get where you want to go. I'm going to break it
down, I'm going to show you the hard math. I want to start by telling you what
society is recommending. And I'm going to share with you whether I agree with it
or not. This is what we're currently told:
Suggested retirement savings by age. The above saving amounts may seem impressive
but consider the rule of thumb. Given by some financial experts on... This is
actually the really funny part. Check this out. This is what they're
referencing. They said, how much do people have for retirement they said in their
20s? They have 16,000. In their 40s, they have 63,000. In their 60s, they have
172,000. And this is a course by a popular company
that is pushing CDs and IRAs and 401Ks and all the boring crap that frankly
can't get us where we need to go. But then they said this, they said, but as
impressive... As I'm like, "Impressive!? We've got a freaking die." As impressive this out,
consider the rule of thumb, given by some financial experts that what you need to
have by 67. They said, "By your 60s, you should have 8 to 10 times your
annual salary." And that's what I really want to put on trial today.
No one's going to retire in their 30s. They say in your 30s, you need to want... You
should have earned 1 to 2 times your annual salary. So by the way, if you're 35
and you make $45,000 a year, they're saying, "Hopefully you have put 2 times
that $90,000 into savings." Or if you're in your 50s,
hopefully you have 6 to 7 times your annual salary. But Americans in
their 60s, 8 to 10 times their annual. Well, let's look at reality. I've
had that opportunity too frankly in a view thousands of Americans. And I want
to share with you some of the things that I've personally found. If by your
60s, you have 8 to 10 times your income, then let's see how much that actually is.
First of all, there's a lot of families today that actually have dual incomes.
And so, the average American makes $44,000 a year. If they
have a spouse that is earning that average or maybe a little less. Let's
just say that they're living off of $80,000 a year of a combined income.
You've been working your whole life, you've been getting raises, you've been
moving up. You've be... Your most valuable experienced level in life. And now you
finally have $80,000. Well, what is 10 times $80,000? It's 800
thousand dollars. Now, why would this company and website tell you that that
should be your goal? Well, I'm going to tell you right now that this company is going to
take that $800,000. They're going to Park it into an annuity. If
you just want to live off of the interest, you're going ot park that in an
annuity maybe earning 4%. And you know what %4 on 800
thousand dollars is? Well, we can do the math really easy. It's 800
thousand dollars times 0.04%. And that will give you the figure of
$32,000 a year. $32,000 a year. You
divide that out by 12 months and it is basically 3 grand. You can
basically have $3,000 a month. Maybe you have some social
security that comes in on top of that. If you take a look at that, you're not going to
be anywhere living off of $80,000 a year. Maybe at best, you're
going to be living at 50 or 55 thousand dollars a year. But now, you've
got the next 20 or 30 years because medicine is making us healthier,
live longer. And so, I look at that I'm like, "Is that the way you want your
retirement to be if you're not working anymore?" Now, for some people they don't
have a choice. It's just the way it is. This math for me, this was distressing in
my 20s. Now, a lot of you watching here on YouTube, I know that on average you're
probably in your late 20s or early 30s. Some of you are a teenager. So, you're
getting an early start. This is the time to get your hands on this information
and then act boldly on it. It's not too late if you're in your 40s or 50s but
you have to get far more aggressive. So, here's what needs to be considered:
There's 2 habits that we need to have out the gate to be properly prepared for
retirement. And it's not just this accumulation methodology.
Number 1, we need to make sure that we're being rockstars at saving money
while not putting yourself into a space of scarcity. There's so many people that
live a very limited life. They don't travel, they don't take trips, they don't
buy things, they don't do things that they want and it's because they're in
there the scarcity mindset. Because they're focusing all the time on saving,
saving, saving. I've got friends that have millions of dollars and really don't
spend it and they don't enjoy it. And so I've learned that no matter how big the
pile of money is, it doesn't really create the spirit of abundance and
freedom to live until you can translate it into a passive income. So, savings is
part one. But the other part of the equation that we want to add to that
Part B here is learning how to invest. This is the most important thing here.
Now, when I say invest I am NOT talking about hiring a financial planner that is
going to teach you how to not diversify and just say, "Let's put it in the stock
market this way and then we're going to put it in the mutual fund", which is the stock
market that way. And then let's new ties it that's the stock I'm going to get this
way, the S&P. Guys, it's all the same boring crap. Stock market goes down you
lose all your value. And every 8 to 10 years is a correction and the stock
market on average. So, the reality is when I say learn how to invest, I don't mean
find a stock broker. Don't find a financial planner. A brokerage account.
What I'm actually talking about is how do you control your own destiny? Here's
2 things that I would encourage you to try on. And I've never said this before
on video so I'm super excited to share this with you today. Your goal is to
figure out how to save a minimum of 20% your income and your goal is to figure
out how to get a 20% ROI. If you're saving 20% of your income and
then you're earning 20%, we can actually do the math on what ends up happening.
Let's talk about our friend here that is making $80,000 a year. And so we say,
"Great, let's do the math." Let's see if Kris's math adds up here because it
certainly doesn't with what I've been showing you from these guys. 80
thousand times 0.2 is $16,000 a year. Now, if I take
$16,000 and I have this money that I am saving every year but I
also have it growing at 20%, that means that I'm producing 32
hundred dollars a year. Now, I can't retire on thirty $3,200.
We're going to remove all of the compounding. Let's just say that I was
saving $16,000 for 10 years in a row. $16,000 for 10 years is
$160,000. And then, I've got 3200 times 10, sets
$32,000 a year. Interesting. In 10 years,
I got the same thing than a lifetime of getting to $800,000
would produce. Do you see what I'm talking about here? I can do in a
quarter of the time what I can't in a lifetime if I am producing a better ROI.
So, one of the big obvious questions is, "Well Kris, that sounds good. But I'd go
to my financial planners and I say, I want a 20% ROI?" And you know what
they tell me? "Way too much risk, you're going to lose your money." And you know what?
They're right. If you try to earn 20% in the stock market, the risk is
through the nose and you're not going to survive it you're going to have wins and
it's horrible if you do because then you think you can produce it again. And then
when you lose everything because you can't, then you're in trouble. You're
going to have to my friends get out of the stock market and the traditional
financial mindset of IRA and 401K thinking. I have for example a document
that I produced detailing my strategy of how on my last 4,000 homes,
I have averaged a 25% annual ROI. By the way, if we redo these numbers at 25%, it
gets nuts. It gets really really exciting, it's frankly crazy. This document by the
way is an alternative to actually showing how you can access investments
that are out there in the world today, just like I'm doing. Nearly a billion
dollars worth. Frankly, so a relatively small amount. But have earned these 25%
annual ROIs. Frankly starting at 22, that's how I became financially free
with six-figure residual income by 26. And now, I turned 40 years old and since
then have helped thousands of people. Dude, what I'm finally telling the story I've
been sharing here on YouTube. So, I make these videos every day on this channel.
If you're not a subscriber like... Click that and fix that right now. I make these
videos for a couple of reasons. One is this is a part of my legacy play. I've
got my kids, I got my life that I'm creating and one of the things that
brings me really fantastic joy is "How many people can I influence and help on
this planet to be better financially, make better financial intelligence
decisions and and to basically get ahead?" My mantra life has been "Be ahead".
And most people when it comes to this game are so far behind because they're not doing
proper planning. The best thing I said in this video in my opinion that I hope
gets like lockdown up here is how do I get to the point where I'm saving 20%?
And how do I get to the point where I can access 20% annual ROI. If you
want to know how to do that, there are simple ways of passively doing that real
estate. Meaning, a team out there managing the building and growing of a portfolio.
And if you're doing a good job saving your money or if you put in 401Ks and
IRAs it's time to pull it out and put it in real estate. So, you're not earning 3, 5
and 7 % pathetic ROIs. But you're diversifying and getting yourself in a
game with ROIs that have the ability to get you where you actually want to go.
So, I've documented all of that here in this free book that you can have. And
it's impressive when you go through it and see the track record on nearly a
billion dollars worth of real estate. Click the link below.
I've never offered this before. So, I'm excited. I'm actually giving it away for
free. All you have to do is cover the shipping and then we'll go ahead and
send it out to you. And that my friends is an opportunity for you to at least
get yourself educated on alternatives. Because they exist, they're out there not
a lot of people are doing the things that they need to be. Now, a couple of
things that will help you is I also have, in the link below, not just this but I
also have a link for a free calculator that I created that will predict with
your current plan when you'll be retired. It'll ask all your financial questions
that you have the answers to. And it'll calculate your going to retire by this date.
Some of you are going to be like, "Kris, it told me I'm going to retire in
182 years. But I'm trying to retire in 10 years." Some of you will say,
"You know, actually I'm on track." It's designed to help you do the math because
when you do the math, you can plan for a much more financially successful life.
This whole conversation on money is motivated by one thing predominantly.
Which is the most important asset that any of us have. Which is time. And time
needs to reside with a plan. Notice that this plan I showed you how
to do in 10 years what you couldn't hardly do in 40 years. But one of the
things that are required in this scenario was 10 years. And so, a good plan
will take time which means that wherever you're at in your life, whether you're
young and you're like, "Oh, retirement is so far away." Some of you are in your 20s
and 30s. And you're like, "Oh, Kris. Retirement is so
far away. I don't have to worry about that right now." I'm like, "You know what? If
you want to panic in your 50s and 60s and like play catch up you can." But the
benefit for me of having done at my 20s is I've visited 40 countries around the
world. I've been able to world travel. Go to concerts. This year I'm taking my kids
to the Olympics. And I saw my team win in the Super Bowl. Like, I've had
extraordinary opportunities. Bora-bora, I put hands down like the best Beach on
the entire planet. Like, Oh, my gosh. So freaking romantic and sexy. Those
bungalows out there on the water. I've had extraordinary opportunities to
create memories instead of being at a job working whereas 87% of people really
don't like what they're doing. So, I don't show that to brag. But I'm saying my life
feels so blessed because I acted early and I said "I want to be early." And if
you're feeling like it's time for you to figure out how to get early, that's why I
have a calculator for free. Below in the notes and I also can give you that free
book to say, "There are alternative things that you can do to get yourself
financially where you want to be." Thank you so much for watching today's video.
My invitation if you're not a subscriber is to make that happen right now. And
ring the bell, I'll notify you every day when the next video comes out.
We'll help you on your journey of creating wealth.