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Why Millennials Need to Rethink Retirement

so much has changed economically for Millennials and gen Z compared to their Gen X and Boomer predecessors should retirement planning still be approached in the same way or should the work in whatever capacity you can get for 30 years so you can save enough to never work again strategy be amended what if there's a better way [Music] for as long as Retirement has been a thing it's required a ridiculous amount of financial forethought Logistics and frankly hope it is the definition of the long game because it's almost impossible to put it off until the last minute but the retirement landscape has changed significantly over the last century and retirement as a concept is actually fairly new for most of human history people just worked until they died fun the origins of retirement are traced back to Otto von Bismarck in the 1800s when he suggested government-run financial support for older members of society Social Security was passed in America fewer than 100 years ago in 1935 and then corporations decided they would also help foot the bill and pension plans also known as defined benefit plans came into Vogue but 1978 legislation introduced a new way to save in section 401K of the tax code that quietly shifted the burden from the employee clear to the employee in this new legislation creating a defined contribution plan paved the way for the pensions which were expensive for employers to maintain to slowly fall out of favor especially as people began living longer so it's kind of no surprise that today's American workers are under saving since funding your own retirement now mostly without a pension is a relatively new hurdle the risk shift from institutions responsible for funding retirement to individuals being responsible for funding their retirements via 401ks and IRAs has placed the onus almost squarely on the shoulders of workers to figure this thing out buffered by the average social security check worth checks notes fifteen hundred fifty dollars per month that has big implications for young people today because it highlights something crucial retirement is an evolving concept almost necessarily it looks different for every gen generation so Millennials and gen Z have to play this long game differently than those who came before us not just in how we plan financially but also in how we structure Our Lives here's the good news though that means we are given the opportunity to Define for ourselves what type of life we want to build more broadly so knowing it's the long game how do you build a life you don't need a break from rather than bisecting your life into two halves your working half and your retired half like a budget production of the Apple TV plus hit Severance and going ham at each foreign mixing the two together can make the result even more enjoyable and fulfilling overall than saving all of your RNR for the back half of your life it makes sense to devote some time energy and effort to constructing a lifestyle for yourself that you are not itching to escape from every chance you get or counting down the years until retirement and probably making a lot of sacrifices in order to speed up that process in fact that may mean more midday breaks to watch TV or take bike rides or nap on a Wednesday afternoon the paradoxes if you can build a life you don't need a break from then planning for retirement will unfold more organically and take the pressure off but here's the rub it might take a little bit of effort and time to get to a place where your life your routines your workflows your savings cushion can be molded into a form that fits your ideal schedule you may have young children right now who dictate your day you may work in a time-sucking job you may be too low on the corporate food chain to call these types of shots for yourself especially if your work is location dependent or closely tied to another person's schedule you may be juggling all three of these things simultaneously but it's helpful and productive even to dream about what an ideal week in the life would look like it's about creating routines and working styles that generate the most positive outcomes for you it might not be worthwhile to grind it out in a job you hate for 30 years solely for the money before you allow yourself to explore something you're actually interested in that may not pay as well an ideal second act may be less about having unlimited free time to lounge around and more about having meaningful activities to fill your time and for most people that will include work and hobbies you find invigorating so here are a few prompts that I like to ask to help conceptualize what this would look like for you number one in what ways do I deplete myself or run myself into the ground number two what does a life of meaning mean to me number three if I were only allowed to work for two hours per week what parts of my job would I want to keep and what would I want to ditch I'm using an absurdly low amount of time just to force Focus here so only the best stuff can stay number four which rituals or practices make me feel most like myself and what's stopping me right now from doing more of them so now that we've got some of our conceptual boxes checked let's switch gears a little bit and talk about the financial side of this picture calculating your retirement needs based on your age we can leverage some hashtag math to understand how much we need to save whether your retirement income is going to support a traditional retirement at traditional retirement age 65 Plus or it's going to be your supplemental income starting in your 40s if you begin working part-time on a passion project the generally agreed upon replacement rate for income in retirement is about 75 percent in the financial planning world and replacement rate basically just means in order for you to replace your income how much does your portfolio need to be able to pay you this advice is given under the assumption that you'll pay less in taxes as a retiree you'll stop saving and you'll benefit from other Cost Cuts but the problem in my mind is that almost nobody makes the same amount of money throughout their entire career and wild swings and income can make identifying one pre-retirement income pretty difficult here's why this matters though 56 percent of people say that they expect to have less than five hundred thousand dollars by the time they retire providing an annual income of twenty thousand dollars per year according to the four percent rule so supplement that with the average social security check and that's about thirty two hundred dollars per month to live on depending on your needs and your timing that might be enough but it might not be as the same study found that only three percent of retirees deemed they were living the dream while around 37 percent said they were comfortable but I want all of Rich Girl Nation to live dream so let's unpack the math that can show us how to get there first we need to identify our general goal bearing in mind that this is a ballpark and to State the obvious the earlier you start the easier this will be there's really no getting around that so what Grand number in the bank should we shoot for I recommend using your monthly spending plus buffer as a guidepost for how much to invest as opposed to the aforementioned 75 income replacement rate the challenging part about focusing on your monthly spending is that it too fluctuates through different life stages and it'll be impacted by factors like where you live and how many dependents you have and your medical needs but a monthly spending range is usually useful enough to provide a ballpark for example I know that when I was single I lived on about three thousand dollars per month then when I got married my half of our monthly spending jumped up to about four thousand dollars per month when we have kids it might go up to six thousand dollars for my half for consistency's sake so this means our dual income needs to to range anywhere from six to twelve thousand dollars per month and if I can multiply by twelve I can get our annual spending somewhere between 72k and 144k per year depending on the stage of life in today's dollars and If I multiply those numbers by 25 I get our portfolio targets that'll allow for a safe withdrawal rate of roughly four percent that means my ballpark goal is anywhere between 1.8 and 3.6 million dollars so I can take the upper bound to the 3.6 and know that it would likely suffice as my sole source of income in retirement if my ideal life involved no work at all or work of some kind that wasn't paid like caring for family this would be the number necessary for a traditional retirement I can take the lower bound of 1.8 million and know that it would likely suffice as a less traditional retirement buffer for my costs providing the majority of my monthly expenses if enjoyable part-time work could provide the rest this would be the number more appropriate it for the evolved retirement blended with your working life model that we're discussing today unless you think but Katie I do not dream of Labor of any kind why would you suggest that we sandbag the OG retirement Vision with something as silly as part-time work consider this in a recent study from American advisors group they found roughly half of the 1500 people aged 60 to 75 surveyed said they plan to work part-time in retirement 12 percent said they never planned to stop working which is actually an increase from six percent in 2019.

So this is already reality for many retirees but it's hard to say whether it's by choice or out of necessity but work sure feels different when you are choosing it which makes saving and investing for the future a good idea no matter what your plans are and by making intentional shifts toward fulfilling work earlier you are less likely to hit traditional retirement age and feel disappointed if you slogged it out for 30 years doing something you didn't even like and still don't have enough to live a comfortable retirement and with regards to those example ranges the good news is that this is all proportional for example if you spend four thousand per month your gold number would be around 1.2 million which is still a lot but surprisingly achievable with consistent effort and compounding so let's figure out how close you already are to your long-term goal the concept of compounding can help us understand how close we already are to reaching our goal amount and for the sake of Simplicity we'll use a lower average rate of return that takes inflation into account for example maybe you're 30 years old today you've got 100K invested by the time you're 50 that 100K will be worth three hundred twenty thousand dollars assuming a six percent real rate of return even if you didn't invest anything else to reiterate I like to use six percent as a post-inflation rate of return because it helps accurately represent what the money will actually be worth in today's terms simply plug your existing invested assets into a compound interest calculator we'll link a good one in the description use a six percent rate of return and then plug in a realistic number of years between now and when you expect to make this type of transition if you want to be more conservative so think higher inflation lower nominal returns you can use five or even four percent you'll see that depending on how much you have already you may be closer than you think some of you may realize you are already in a position where you can safely downshift and make life adjustments without meaningfully threatening your future security to put a finer point on this you may already have enough saved and invested for future use needs that any stress you're currently experiencing about sticking around in a highly paid field that just is not right for you might be unfounded because we don't know what the individually funded and personally responsible retirement is going to look like for a generation it's worth interrogating whether or not the traditional model for retirement still makes sense for us instead you can determine what a life you don't need a break from looks like and set your financial goals accordingly with a range based on your spending depending on your age and how much you already have saved and invested you may be way closer to safety than you think and if you want to hear the full episode of this week's money with Katie show click the video that just popped up on the screen and in the description of this video our show is a production of morning brew and is produced by henna Velez and me Katie Gotti tossan Devin Emery is our chief content officer our video editors are Christy Muldoon Sebastian Vega and Nicole Friedman additional fact checking comes from Kate Brandt foreign [Music]

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Why Millennials Need to Rethink Retirement

so much has changed economically for Millennials and gen Z compared to their Gen X and Boomer predecessors should retirement planning still be approached in the same way or should the work in whatever capacity you can get for 30 years so you can save enough to never work again strategy be amended what if there's a better way [Music] for as long as Retirement has been a thing it's required a ridiculous amount of financial forethought Logistics and frankly hope it is the definition of the long game because it's almost impossible to put it off until the last minute but the retirement landscape has changed significantly over the last century and retirement as a concept is actually fairly new for most of human history people just worked until they died fun the origins of retirement are traced back to Otto von Bismarck in the 1800s when he suggested government-run financial support for older members of society Social Security was passed in America fewer than 100 years ago in 1935 and then corporations decided they would also help foot the bill and pension plans also known as defined benefit plans came into Vogue but 1978 legislation introduced a new way to save in section 401K of the tax code that quietly shifted the burden from the employee clear to the employee in this new legislation creating a defined contribution plan paved the way for the pensions which were expensive for employers to maintain to slowly fall out of favor especially as people began living longer so it's kind of no surprise that today's American workers are under saving since funding your own retirement now mostly without a pension is a relatively new hurdle the risk shift from institutions responsible for funding retirement to individuals being responsible for funding their retirements via 401ks and IRAs has placed the onus almost squarely on the shoulders of workers to figure this thing out buffered by the average social security check worth checks notes fifteen hundred fifty dollars per month that has big implications for young people today because it highlights something crucial retirement is an evolving concept almost necessarily it looks different for every gen generation so Millennials and gen Z have to play this long game differently than those who came before us not just in how we plan financially but also in how we structure Our Lives here's the good news though that means we are given the opportunity to Define for ourselves what type of life we want to build more broadly so knowing it's the long game how do you build a life you don't need a break from rather than bisecting your life into two halves your working half and your retired half like a budget production of the Apple TV plus hit Severance and going ham at each foreign mixing the two together can make the result even more enjoyable and fulfilling overall than saving all of your RNR for the back half of your life it makes sense to devote some time energy and effort to constructing a lifestyle for yourself that you are not itching to escape from every chance you get or counting down the years until retirement and probably making a lot of sacrifices in order to speed up that process in fact that may mean more midday breaks to watch TV or take bike rides or nap on a Wednesday afternoon the paradoxes if you can build a life you don't need a break from then planning for retirement will unfold more organically and take the pressure off but here's the rub it might take a little bit of effort and time to get to a place where your life your routines your workflows your savings cushion can be molded into a form that fits your ideal schedule you may have young children right now who dictate your day you may work in a time-sucking job you may be too low on the corporate food chain to call these types of shots for yourself especially if your work is location dependent or closely tied to another person's schedule you may be juggling all three of these things simultaneously but it's helpful and productive even to dream about what an ideal week in the life would look like it's about creating routines and working styles that generate the most positive outcomes for you it might not be worthwhile to grind it out in a job you hate for 30 years solely for the money before you allow yourself to explore something you're actually interested in that may not pay as well an ideal second act may be less about having unlimited free time to lounge around and more about having meaningful activities to fill your time and for most people that will include work and hobbies you find invigorating so here are a few prompts that I like to ask to help conceptualize what this would look like for you number one in what ways do I deplete myself or run myself into the ground number two what does a life of meaning mean to me number three if I were only allowed to work for two hours per week what parts of my job would I want to keep and what would I want to ditch I'm using an absurdly low amount of time just to force Focus here so only the best stuff can stay number four which rituals or practices make me feel most like myself and what's stopping me right now from doing more of them so now that we've got some of our conceptual boxes checked let's switch gears a little bit and talk about the financial side of this picture calculating your retirement needs based on your age we can leverage some hashtag math to understand how much we need to save whether your retirement income is going to support a traditional retirement at traditional retirement age 65 Plus or it's going to be your supplemental income starting in your 40s if you begin working part-time on a passion project the generally agreed upon replacement rate for income in retirement is about 75 percent in the financial planning world and replacement rate basically just means in order for you to replace your income how much does your portfolio need to be able to pay you this advice is given under the assumption that you'll pay less in taxes as a retiree you'll stop saving and you'll benefit from other Cost Cuts but the problem in my mind is that almost nobody makes the same amount of money throughout their entire career and wild swings and income can make identifying one pre-retirement income pretty difficult here's why this matters though 56 percent of people say that they expect to have less than five hundred thousand dollars by the time they retire providing an annual income of twenty thousand dollars per year according to the four percent rule so supplement that with the average social security check and that's about thirty two hundred dollars per month to live on depending on your needs and your timing that might be enough but it might not be as the same study found that only three percent of retirees deemed they were living the dream while around 37 percent said they were comfortable but I want all of Rich Girl Nation to live dream so let's unpack the math that can show us how to get there first we need to identify our general goal bearing in mind that this is a ballpark and to State the obvious the earlier you start the easier this will be there's really no getting around that so what Grand number in the bank should we shoot for I recommend using your monthly spending plus buffer as a guidepost for how much to invest as opposed to the aforementioned 75 income replacement rate the challenging part about focusing on your monthly spending is that it too fluctuates through different life stages and it'll be impacted by factors like where you live and how many dependents you have and your medical needs but a monthly spending range is usually useful enough to provide a ballpark for example I know that when I was single I lived on about three thousand dollars per month then when I got married my half of our monthly spending jumped up to about four thousand dollars per month when we have kids it might go up to six thousand dollars for my half for consistency's sake so this means our dual income needs to to range anywhere from six to twelve thousand dollars per month and if I can multiply by twelve I can get our annual spending somewhere between 72k and 144k per year depending on the stage of life in today's dollars and If I multiply those numbers by 25 I get our portfolio targets that'll allow for a safe withdrawal rate of roughly four percent that means my ballpark goal is anywhere between 1.8 and 3.6 million dollars so I can take the upper bound to the 3.6 and know that it would likely suffice as my sole source of income in retirement if my ideal life involved no work at all or work of some kind that wasn't paid like caring for family this would be the number necessary for a traditional retirement I can take the lower bound of 1.8 million and know that it would likely suffice as a less traditional retirement buffer for my costs providing the majority of my monthly expenses if enjoyable part-time work could provide the rest this would be the number more appropriate it for the evolved retirement blended with your working life model that we're discussing today unless you think but Katie I do not dream of Labor of any kind why would you suggest that we sandbag the OG retirement Vision with something as silly as part-time work consider this in a recent study from American advisors group they found roughly half of the 1500 people aged 60 to 75 surveyed said they plan to work part-time in retirement 12 percent said they never planned to stop working which is actually an increase from six percent in 2019.

So this is already reality for many retirees but it's hard to say whether it's by choice or out of necessity but work sure feels different when you are choosing it which makes saving and investing for the future a good idea no matter what your plans are and by making intentional shifts toward fulfilling work earlier you are less likely to hit traditional retirement age and feel disappointed if you slogged it out for 30 years doing something you didn't even like and still don't have enough to live a comfortable retirement and with regards to those example ranges the good news is that this is all proportional for example if you spend four thousand per month your gold number would be around 1.2 million which is still a lot but surprisingly achievable with consistent effort and compounding so let's figure out how close you already are to your long-term goal the concept of compounding can help us understand how close we already are to reaching our goal amount and for the sake of Simplicity we'll use a lower average rate of return that takes inflation into account for example maybe you're 30 years old today you've got 100K invested by the time you're 50 that 100K will be worth three hundred twenty thousand dollars assuming a six percent real rate of return even if you didn't invest anything else to reiterate I like to use six percent as a post-inflation rate of return because it helps accurately represent what the money will actually be worth in today's terms simply plug your existing invested assets into a compound interest calculator we'll link a good one in the description use a six percent rate of return and then plug in a realistic number of years between now and when you expect to make this type of transition if you want to be more conservative so think higher inflation lower nominal returns you can use five or even four percent you'll see that depending on how much you have already you may be closer than you think some of you may realize you are already in a position where you can safely downshift and make life adjustments without meaningfully threatening your future security to put a finer point on this you may already have enough saved and invested for future use needs that any stress you're currently experiencing about sticking around in a highly paid field that just is not right for you might be unfounded because we don't know what the individually funded and personally responsible retirement is going to look like for a generation it's worth interrogating whether or not the traditional model for retirement still makes sense for us instead you can determine what a life you don't need a break from looks like and set your financial goals accordingly with a range based on your spending depending on your age and how much you already have saved and invested you may be way closer to safety than you think and if you want to hear the full episode of this week's money with Katie show click the video that just popped up on the screen and in the description of this video our show is a production of morning brew and is produced by henna Velez and me Katie Gotti tossan Devin Emery is our chief content officer our video editors are Christy Muldoon Sebastian Vega and Nicole Friedman additional fact checking comes from Kate Brandt foreign [Music]

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How To Retire In 15 Years (Starting With 0$)

in a world that often ties success to climbing the corporate ladder and retiring at a standard age the fire movement stands out as a revolutionary approach offering a pathway to financial Independence and early retirement if you're intrigued by the idea of Breaking Free from the traditional work to retirement model let's explore the three fundamental questions that will guide you on your journey to fire so if you're wondering what exactly you need to do to retire earlier and how much money you actually need you come to the right place we're also going to talk about something of particular importance at the end and it's how you can be prepared if things don't go as planned in the end we're going to answer all these questions in this video today so stay tuned but before we get to the main topic of the video first of all welcome back and if you're new on our Channel we are the finance nerds and we try to help you to fix your finances and spread our knowledge in saving money budgeting and investing and if you like the video and want to support us hit the like button on this video number one what do you have to do to follow the fire movement the first step on your fire journey is embracing the core principles that Define this movement at its Essence fire is about taking control of your finances living intentionally and making strategic decisions to build a future of Financial Freedom mastering the art of frugality to follow the fire movements you must become best friends with frugality start by scrutinizing your spending habits create a detailed budget outlining your monthly income and expenses identify areas where you can cut back without sacrificing your quality of life and opt for needs over ones cook at home and resist the urge to keep up with extravagant Lifestyles establishing your savings rate goals fire success hinges on your ability to save a significant portion of your income set clear savings rate goals aiming for at least 25 to 50% of your earnings the higher your savings rate the faster you accumulate the funds needed for financial Independence regularly revisit your budget and savings goals to stay on track investing wisely for growth saving alone won't get you to fire you need the power of investing develop a well-balanced Investment Portfolio that aligns with your risk tolerance and financial goals diversify your Investments across stocks bonds and real EST state to maximize growth potential understand the basics of compounding interest and let your money work for you calculating your financial Independence fi number the Cornerstone of the fire movement is your fi number calculate this by determining your annual expenses and multiplying them by 25 this number represents the amount of money you need to have invested to cover your living expenses indefinitely knowing your fi number gives you a tangible goal and a clear end point for your journey and embracing a minimalist lifestyle simplify your life to amplify your journey to financial Independence Embrace a minimalist Lifestyle by decluttering your living space and cutting down on unnecessary expenses the less you need the easier it is to reach your fi goals re-evaluate your possessions and ask yourself does this bring me joy or is it a financial burden number two how much money do I actually need understanding the financial aspect of the fire movement is crucial to setting realistic goals and expectations the answer to this question lies in your lifestyle expenses and the vision you have for your postretirement life creating a detailed budget to determine how much money you need for fire start with a comprehensive budget categorize your expenses into fixed and variable essential and non-essential include everything from housing and utilities to entertainment and dining out the more detailed your budget the more accurate your estimate of postretirement needs will be estimating your annual expenses your fi number is directly linked to your annual expenses calculate how much money you spend in a typical year including all necessities and discretionary spending be honest and realistic about your lifestyle choices remember fire isn't about deprivation it's about optimizing your spending to align with your values multiplying by 25x rule once you have your annual expenses multiply them by 25 this multiplication factor is derived from the 4% rule a principle suggesting that you can safely withdraw 4% of your Investment Portfolio annually without depleting it your fi number is essentially 25 times your annual expenses representing the amount needed to sustain your lifestyle without a traditional job adjusting for inflation inflation is a silent wealth eroder factor in a conservative estimate for inflation when calculating your fi number this ensures that your money maintains its purchasing power throughout your retirement consider historical inflation rates and consult with financial experts to make informed adjustments evaluating health care costs don't overlook Healthcare expenses in your fire calculations research Health Insurance options and account for potential increases in medical costs as you age understanding and planning for healthcare expenses ensures that your fire plan remains robust even in the face of unexpected health chck Alles number three what kind of backup plan can I create if things don't work out as planned while the fire movement provides a road map for Financial Freedom it's crucial to acknowledge that life is unpredictable creating a solid backup plan ensures that you're prepared for unforeseen circumstances building an emergency fund an emergency fund is your financial safety net before aggressively pursuing fire ensure you have a robust emergency fund that covers 3 to 6 months worth of living expenses this fund provides a cushion in case of unexpected job loss medical emergencies or other unforeseen events diversifying income streams relying solely on your Investment Portfolio for income can be risky consider diversifying your income streams by exploring sight hustles freelancing or part-time work these additional streams not only boost your savings rate but also act as a buffer if your Investments face temporary setbacks continuously up updating your plan flexibility is key in the fire Journey regularly review and update your financial plan to accommodate changes in income expenses and market conditions a dynamic plan allows you to adapt to unforeseen circumstances and make informed decisions to safeguard your financial future staying agile in the job market if early retirement doesn't unfold as planned staying agile in the job market is a valuable backup strategy keep your skills relevant maintain professional Networks and be open to opportunities that align with your goals a temporary return to Workforce can provide a financial boost if needed exploring alternative living arrangements consider the role of housing in your fir plan downsizing or exploring alternative living arrangements such as house hacking or co- living can significantly reduce expenses being open to adjusting your living situation adds another layer of flexibility to your backup plan continue learning and adaptation the fire journey is an ongoing process of learning and adaptation stay informed about financial Trends investment strategies and lifestyle adjustments that may enhance your plan the ability to adopt to changing circumstances is a Hallmark of successful fire practitioners embarking on the fire journey is a bold and empowering Choice by adhering to the principles of frugality strategic savings and intentional investing you can unlock the door to financial Independence remember the fire movement isn't a riged set of rules it's a customizable framework that empowers you to shape a future where financial decisions align with your values and aspirations and if you think living below your means is H wait until you know these five Frugal Living ways from one of our most popular videos on the right if you enjoyed this video give it a thumbs up and don't forget to subscribe to our channel for more empowering content like this we hope to see you on the next video

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How we Retired at 40 – 7 tips to succeed for Early Retirement

Hey guys retired at 40 I'm going on a little road trip today just me and Murph and last week I reached a milestone on my channel and I hit a million views total and 10,000 subscribers in the same week since I've been getting requests for quite a long time about how I retired at 40 and I'm on a long road trip right now I figured what better time to share the story so without further ado here's the retired at 40 story so before I get started I want to say that this is not in any way a brag story in fact I'm definitely not a showy type guy I enjoy very simple things in life and money to me is more of just a vehicle to be able to retire young and have my family live a comfortable and an easy life and to be able to enjoy lots of life experiences and be comfortable in life before I'm old and gray so really the retirement journey began in about 2002 graduated from Iowa State University with a degree in marketing and business and by that point I have met my wife Kelly she had already graduated from school and she was kind of waiting for me and we wanted to move west out of the Midwest to move west see some new territory and get closer to the outdoors so I grabbed my degree ran out the door packed up my 1987 Ranger fully equipped with eight foot hay racks full of all of my personal belongings and we drove to Littleton Colorado and at this point in my life I had $200 in my pocket and Kelly had about the same so being completely naive and basically completely broke but with a degree I was on the search for the best suit and tie job that I could possibly find so I bounced around for a couple months just working some kind of halfway jobs and I quickly realized that I did not want to wear a suit and tie and I wanted nothing to do with the man and working a nine-to-five job well Kelly had found a job in a real estate office working the front desk and she had become friends with a couple of the big-time Realtors there one of which you caught wind that I had some handyman type skills but he made me a deal that if he paid cash for a house and I fixed it up that he would split the profit with us 50/50 and at this point in my life all I saw was dollar signs if I was completely blown away that there was someone that could pay cash for a house this is coming from a guy who had less than $200 in his pocket at this point it was pretty much scraping by I tried to hold back my excitement to him but naturally I said yes please let's do that I was working the graveyard shift at Target stocking shelves I'd worked for 10 hours I would go home grab a little bit of breakfast and I'd head over to the property and work on it for another five or six hours I try and catch a few hours of sleep and then I would rinse and repeat it was at this point in my life that I learned a few different things one you really have to dig deep to reach your goals in life because I was not getting paid by the hour and at this point I didn't know how much money I was gonna make I didn't know if I would make $500 when this was all done or if I was going to make $5,000 when this is all done so I learned that a lot of things that can benefit you financially you have to put in the work upfront without knowing what your final outcome is going to be after about three months which seemed like an eternity of working seven days a week for sometimes 15 sometimes 20 hours a day on this house the house was ready to go on the market and it was all finished it looked great and then before you knew it it's sold and then the house closed and at this point I still didn't know what we were gonna make off it but for me it didn't matter the hard part was done I didn't have any of my own money into it I just had my time basically so the guy we were doing the investment with hands me an envelope and I opened it up and at $8,000 being twenty-two years old and having $8,000 I might as well have hit the lottery and that brings me to my second valuable lesson that I learned and that is being responsible with money so when you have $8,000 and you're 22 years old a lot of people would go buy a new car they'd go buy some flashy things some pretty things but to me I had realized that if I can make $8,000 once I can make $8,000 again and again and again and again so I can either go p*&% the $8,000 away that I had worked my a#* off for or I can take that $8,000 and do exactly what he did but do it myself and potentially make twice or three times as much money so my wife being in a real estate office we became acquainted with quite a few smart people financially smart people we learned a lot about real estate very quickly because we were willing to learn which is my next valuable life lesson is that you never stop learning so we took our $8,000 we put a small down payment on a condo in Littleton because we realized that giving someone else our money was you might as well be throwing it away we wanted to be working towards something and it own something on our own so we took our other four or five thousand dollars and we started our search for a real estate investment that we could do all of our all on her own and get a hundred percent of the profits so after some searching we did find a place we found a small town home it was not in as nice of area as we were living it was smaller it needed lots of work but that takes us to our next light life lesson that we learned and that is to sacrifice for a greater payoff in the future so we had only lived in our condo for a very short time but we realized that if we moved into the real estate investment that we could rent out the place that we are living at and move into the place that we were fixing up that we'd have to be paying a mortgage on anyway we had our first real estate investment and we had our first rental so being 22 years old and owning two properties and carrying two mortgages and at this point I'm still working at Target was a pretty scary proposition in life but all I could see was that $8,000 check they had started to change our lives I also want to point out and kind of give a shout-out to my parents and to my wife's parents because neither one of our parents ever handed us anything in life they always made us work for what we achieved in fact when we move we tried to convince my parents to co-sign on our mortgage for the condo that we bought and they said no way at the time I was very very mad at them and I thought I would never forgive them in hindsight it was one of the best things they've ever done for me because it just made me have that fire in my belly and really just want to work to get what I wanted so back to having two mortgages that was a completely scary thing in my life I was making something like 10 dollars an hour at Target I think Kelly was making $13 an hour at the real estate office she was working at we could barely afford the condo we had but now he had two.

God bless the banks lending money to anyone at that point on the very plus side of that we learned that someone else can pay our mortgage and we're basically getting that money for free and then later we figured out that there are many many many tax benefits and huge benefits of owning a rental property so we quickly learned that trying to pay for materials and the things needed to fix up an investment property on just barely over minimum wage is not easy to do the thing that happened next couldn't have come at a more perfect time so all of a sudden I had money to spend to fix up this house and it would just get me to that next big paycheck that much quicker so that's what we did we fixed up the house we doubled our money we rolled it into the next one so we kept bouncing from house to house quite a few times and that sacrifice of from going from a nice house to live in to going to a crappy house to live in to fix up to making it nice again to going to another crappy house to fix up it became pretty stressful but we always had our eyes on the prize “are you still with me Murph?” after doing this two or three times I remember getting a check for the last one and the check was forty one thousand dollars so at that point it didn't make sense to work at Target anymore so I just started doing it full-time but we never took the big proceeds from the real estate and put it into our actual living we always rolled it into the next property and that kind of gave us the baseline of even how we live today we always live well below our means we take the money that we make and we put it into things that will make us an income not into something that will lose us money but you do have to treat yourself every once in a while otherwise there's no reason to make the money in the first place Kelly saw many of the high producing Realtors making large amounts of money so she decided to get a real estate license and she created her own real estate business so now we really felt like we had the world by the balls because we were getting paid a commission to buy the property and then we were saving half of the Commission when we sold the property and I was fixing him up so we just get rolling our profits in rolling our profits in rolling our profits in until family we were able to buy a house and now that we could get a house we were playing with the big boys the profits were much larger but so was the risk and we really didn't want to lose all the way it worked for for the last couple of years so we did a few houses and we made some great money but instead of selling them and pulling out our profits we kept them as rentals and it was at this point that we really started building up our rental inventory at this point it was about 2006 or 2007 and real estate was starting to slow down a little bit but we have purchased a large house I'm a courage that was really a big risk for us it was a large house to fix up it was our biggest project for sure it took us the most money to fix it up and we had the most money into it so we lived in this house for about 8 months while we were fixing it up and we kind of decided after doing about 12 properties that the moving all the time was starting to get kind of old and we were kind of getting older ourselves and we decided that we wanted to have kids and kind of settle down a little bit Murph are you with me? sometimes I feel like I'm just talking to myself so after the eight months was up we finished the house we sold it and shortly after the real estate market completely crashed the bubble had burst and Colorado was one of the hardest hit States we got out of the house just in the nick of time and not only did the real-estate market bubble burst we found out that we couldn't have kids and it seemed like a real low point in our lives but around 2007 when all this happened we realized our next lesson with every negative there is a big positive that can be gained from it and you can just use it as fuel for your fire so the recession was tough we thought our great life had come to an end we thought we were gonna have to get regular jobs you know people were losing their jobs left and right people were losing their houses Colorado was hit very very hard one of the worst states during the recession and we learned that what goes up must come down and in this case it came down hard in many cases not just real estate when things are bad that's the time to invest and if you're smart with your money and you've been saving while everyone else spending that's the time to benefit though from about 2008 to 2012 we were buying rentals so we were able to adapt I started doing contracting because that's pretty much what I was doing before but now I had to be doing work for someone else and Kelly's always been a mover and a shaker and even a bad real estate market she was able to keep her business moving we were buying things for pennies on a dollar and even though we were not making great money and in some cases losing a little bit of money on rentals we were able to stick it out and after lots of lots of years of lots of lots of heartache and lots of lots of doctors we were able to have two boys so about 2014/2015 real estate started creeping back up again prices kept going through the roof and just when he thought it was the peak they just kept going up stuff was flying off the shelves you could list a house and it would have multiple offers within 24 hours so we had about age 35 we were completely debt-free we had several rentals that we were cash flowing we didn't owe any money on the rentals so all that money was just rolling into a bank account when you have no bills and you have an income coming in your net worth starts to grow very quickly so we rode out the storm Kelly's business was doing great my contracting business was doing great we have liquidated a lot of our real estate in Colorado we had capital to play with we had two beautiful young boys and then I fell to my knees crying like a little baby I had herniated a disc in my back and I was on a walker for about a month contracting for me was out of the question I didn't even want to think about picking something up so I took some time off and I raised our kids which at first I thought would just be for a few months and then a year passed and then another year passed and I decided that I kind of liked it we had rental income coming in Kelley's business was doing better than it had ever been in fact she had started her own she had several people working for her and just as a little side income I got to do what I love to do which is antiques I was just buying and selling antiques so we were trying to be very strategic at this point because we owned a fair amount of property in Colorado but we knew that our ultimate goal was to retire at 40 and at the rate things were going up we didn't want to sell too early because we didn't want to miss out on that upside but we didn't want to sell too late because we didn't want to risk the chance of taking a step back so as some regret we sold the majority of our properties in around 2017 but this was a game-changer because we were able to make cash for every rental that we purchased so we loaded up on rentals in Iowa we actually purchased our property that we're going to move into which is actually where I'm headed now and that kind of brings us up to speed to current date I take care of our 10 rentals which keep which keeps me pretty busy just in itself i buy and sell antiques i get to see my kids all the time we have a good rental income coming in now we do youtube oh yeah we also do a couple fix and flips every year Kelly has her real estate team with about 10 employees and in June of 2020 we're going to retire at 40 so all in all life is great I have a wonderful family I have enough assets and passive income to live a comfortable life

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