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Misleading Financial Rules That You Should Avoid

18m · Real Personal Finance · 21 Dec 16:00

Scott and James discuss misleading financial rules to avoid.

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Listener Question:

How do you both think about the common wisdom that you should have a certain multiple of your income saved by a specific age (e.g. save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67)?

I am in a situation where my income has tripled between ages 30 and 35. As an example, let's say I had 100K saved at age 30 (1x my salary), but I'm 35 and my salary is now 300K. I don't have 900K saved in retirement, in fact, it's about half that. Am I in trouble?

Planning Points Discussed

  • Utilizing Time Efficiently
  • Capital Appreciation
  • Purchasing Power
  • Other issues (IRAs, Inflation, Financial Goals, etc.)

Timestamps:

2:30 - We're on YouTube HERE!

6:17 - How Much Do I Need To Save?

8:52 - How Much Money Do I Need?

12:54 - Portfolio Changes

14:45 - Income Diversification

18:21 - Aligning Your Financial Goals

LET'S CONNECT!

James

YouTube LinkedIn Website

Scott

Facebook Twitter Website

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The episode Misleading Financial Rules That You Should Avoid from the podcast Real Personal Finance has a duration of 18:58. It was first published 21 Dec 16:00. The cover art and the content belong to their respective owners.

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Scott and James discuss how to balance a home purchase with saving for retirement.

Listener Question:

We want to stay in manhattan and want to be home owners but can’t make the math work. Our current rental 2 bed 2 bath just went up to $4400/mo. A comparable condo would sell around $1.3-$1.5m. That would put the mortgage at around $7,000 with another $2,000-$3,000 in maintainable and taxes a month. Rent does keep increasing and I don’t want to keep getting squeezed but does buying in Manhattan just not make sense? 

Planning Points Discussed

  • Utilizing Time Efficiently
  • Capital Appreciation
  • Purchasing Power
  • Other issues (IRAs, Inflation, Financial Goals, etc.)

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2:30 - Priorities

5:25 - Various Goals 

8:12 - Life & Math Don't Always Match

11:15 - Investment Concerns

12:30 - How Much Home Can You Afford?

16:05 - Aligning Your Financial Goals

LET'S CONNECT!

James

YouTube LinkedIn Website

Scott

Facebook Twitter Website

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Planning Points Discussed:

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  • Purchasing Power
  • Other issues (IRAs, Inflation, Financial Goals, etc.)

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