Do These 3 Things To Set Yourself Up for Retirement

[Music] brought to you by the every dooll app start budgeting for free today I got an email from the Social Security Department with my like yearly statement okay so I thought all right I'm a young buck but I'll open this up let me see what's inside of this bad boy uhhuh and it was pretty interesting to see how much money the government thinks I will be given when I Am The Ripe age of 62 or 70 and I wanted to break this down because we get this question frequently on the show people are asking hey when should I take Social Security will it even be there for me note on that part there's actually a spot in the document where they're they know people are concerned about this so like hey we want to give you confidence in in your future and retirement so click this PDF to show how we'll be there for you well here was the the rousing uh confidence booster we know that um at least until 2034 the money will be there yeah and I was like okay 203 that's that's 10 years from now so 10 years from now they're not going to have 100% of the funding to keep social going and we know this and they encourage me by saying Hey listen even if nothing changes we'll still be able to pay 80% of each benefit due cuz that's fair because I paid into this thing for my whole life for them to then discount it but keep in mind that the benefit was only at a portion of your exactly so they're giving you 80% of what was already what was only a 40% benefit to begin with so uh that we're at 2.83 trillion in the fund in the trust funds as it stands today and so that's why um I encourage people especially the younger Generations do not rely on this this is icing on the cake and I talked about this in my new book Breaking Free from broke Jade can I tell you what I wrote hit me research from the FED reveals 26% of non-retired Americans have zero doar in any kind of retirement account that's one in four non-retired people this is not great and in research from Ramsey Solutions 48% have less than 10 grand saved in retirement so that's going to get you about what 3 months into retirement if you're lucky that's so then people are going well Jade at least all have social security uh well we just showed you how that's not going to be enough to get by here's the real numbers the average monthly benefit in 2023 from Social Security was around $1,700 a month try living on that and you'll see why we call it social insecurity that's approaching the poverty line that's 1,700 bucks a month and by the way that's the average Jade some people get less than $900 a month wow and here's here's the last stat 52% of workers have never stopped to calculate how much money they'll even need in retirement so half of them are just yoloing and fingers crossed head in the sand yet again we'll let someone else worry about it yet again assuming that the government will be there to handle them financially listen I I will tell anybody who will listen you need to if you want to be thriving you want to be thriving during retirement years not just surviving and scratch catching by and and then there's the scam I'm going to just call a scam George where it's like okay if I take Social Security early at 62 I'm only going to get it this much so I'm going to wait till I'm fully aged you know where I can get the full benefit but if you wait even longer you get more money this is what we need to talk about yes and this we do need to talk about it because I did the math for you I just talked with the uh I think it was CNBC I was talking to them and I was saying listen if you don't have to like if you're going to work Beyond 62 start taking social security you know your boy is going to take that money out the day it's available and invest it George give them the math okay I crunched the numbers for you because you know I'm a nerd and I need the numbers so at age 62 if I took out my benefit and I started getting that every month and I invested that whole portion let's just say into a taxable brokerage account not even in retirement account and let's assume 10% rate of return okay from age 62 to age 80 starting from $0 in this account I would have $1.45 million woo wow just from extra money that I took immediately when I could take it right now if I wait till 70 of course people go well George you're going to have you know a lot more money coming in from Social Security every month right yeah but I also lost out on eight years of compound growth so even investing the larger amount for 10 years from age 70 to age 80h at age 80 I now have $921,000 in that account listen so that's a difference get this because I took social security as soon as I could and invested it instead of waiting till 70 it's a difference of over half a million dollar guys to my net worth and to what I can pass on to my grandchildren what I want to say cuz George you laid that out perfectly but I know there's still people who feel this weird sense of fear about even considering that as an option it's like well the government's giving me that money it's for my retirement I'm like number one the government's not giving you anything that was your money that you paid in and you're only getting a portion of it back let's be clear about that doesn't gift anything it's just redistributing all of our money yeah you're getting back your money you gave it to them and they invested it poorly at like a 2.2% return and now that's part of the reason here that we're not having enough to fund everything they're giving your money back to you so you can take it and do whatever you want with it and what George is suggesting and what I'm suggesting is invest it invest it in something that gets better than a 2.2% return because at the end of the day they were only going to provide 40% of the lifestyle you've been used to living and after 20 and after 2034 that 40% goes down 80% this is not crazy that's critical this is why it's called social insecurity get this camera on me right now here here's the deal America go fund yourself I said it live on the Ramsay show do not rely on the government to take care of you with this terrible plan especially those that are younger cuz it may not even be around and if it is it's going to be pennies compared to what your parents got and they pensions and all these wonderful ways they were able to just not save for retirement but it's going to be on us Jade and that's why we tell people invest early get out of Deb get the emergency fund get to investing compound interest is your best friend and if you just do the simple thing be the tortois inside of the hair that's right avoid the crypto and well my buddy said I need to get an annuity and a whole life insurance policy and I saw this rapper on his Tik Tok video said this is what the wealthy do just invest in your 401k I promise it's not a scam 80% of the millionaires we studied uh said the 401K was the number one vehicle yeah your retirement employer plan it is so boring and yet it works when you just invest in mutual funds over time the S&P 500 the overall stock market has returned 10 to 12% since its Inception that's the yeah it's almost like you boil it down to just these if you can in the course of your lifespan you know we strike out when we're 1820 and most of us are going to work until we're 65 God willing maybe even 70 if you want to but if you can do three things if you you can just pay off your debt and live a debt-free lifestyle if you can and so that you're entering retirement without Consumer Debt then if you can do one better and and invest monthly regularly when the time comes so you've made it a habit of investing and if you can enter in retirement without a home mortgage like three goals you have in life if you can do that you are golden and when you do that George you don't need as much of a nest egg if you can enter into retirement without Consumer Debt and without Mortgage Debt suddenly this need to have all this giant money you're like okay I've I've eliminated so much of the payments so much of what's need that that you needed before that you don't need to have you know this when you decrease your risk you increase your peace that's right it's that simple and so when you do that and luckily for my wife and I we decided to do that early we thought what would it be like in our 30s to have no mortgage payment to be investing for a future now bringing our daughter into this world yeah it's just a different way to live we're not as worried about INF infation and what if there's a crash and what if the pandemic we just get to live our life with peace we don't have payments and that's what I want for everyone out there and investing consistently everyone's arguing about net worth and what right your home equity I'm going listen I'm not touching this money we're fine we got margin in our day-to-day life until I'm 62 and tap into Social Security and those investment accounts and Lord willing we won't need much of it yeah what we're saying is a good man leaves an inheritance to his children's children and you can't do that if social secur was your only out that's it like you you just stopped and said okay I'm done making money I have no assets and Social Security is there you you can't leave anybody to anything to any not rely on your kids we take enough calls in the show where relationships are destroyed because parents are relying on the kids the kids are relying on the parents they didn't communicate they didn't invest for retirement and they're calling us a 65 going we have nothing saved what do we do get a time machine I mean there's not a lot you can do you can get out of debt but folks can break the cycle today there are people who can start breaking that cycle today be one of those people wealth gained hastily will dwindle but whoever gathers little by little will increase it hey be the tortoise be a Crockpot in a world full of microwaves my friends create your free every dollar budget today the simplest way to budget for your life