[Music] all right trigger warning are you ready retirement investing yeah two words that can instantly send people into a complete spiral but listen it doesn't have to be that way so today I'm going to make things very simple and share five numbers that you need to know when it comes to investing and your retirement and don't forget to subscribe and share this video with a friend who may love it all right we're going to talk through some numbers when it comes to retirement investing and the first number is 15% okay this is your goal it is 15% of your take-home pay going into retirement so that is going to be your goal now before you do that I want you to be completely debt free everything but your house and to have a 3 to six month emergency fund set aside okay so those two things need to be in place because when you're trying to do a bunch of things and that's what most people do they're like putting some percentages into retirement usually like five or six % here you know they're trying to maybe like keep up with some debt maybe trying to pay it off trying to save for something here I mean they're trying to do like 18 things at once with their money and you just don't make a lot of progress when you do that so what we have found is if you actually pause retirement investing pay off all of your debt which will take on average around two years then get an emergency fund a fully funded emergency fund at three to six months of expenses then go press play on retirement and instead of just the four five 6% that some people do 15% which it can seem like a lot but it actually catches you up on the times you've paused and is going to give you plenty of money at retirement and so when you look at this 15% um a couple things to remember if you do have an employer match when it comes to your 401k their contribution does not count so let's say they match you 5% so 15% take minus five of your money then you have 10% left the 5% that they match you does not count in this equation so when you look at it you know your 401K Roth IRS all of these you know are great options when it comes to retirement but remember 15% of your income going into retirement now that subject of 401k brings me to number two another number that you need to know a 401k or a 403b so these are two options when it comes to retirement that your employer will offer you and they're basically retirement accounts so you can put your money in they'll invest it on your behalf right and then you actually go in and tell them where you want it invested into mutual funds and all of it but that covering is a 401k and most employers will actually match you the percentage of your income that you put in and so it's a company benefit and if you work for the government it's going to be a 403b not a 401k it so funny I saw on Instagram and I actually reposted it because it made me laugh of this clip of Will frell and Amy Po and they're like sitting like with this like investment person and they're like what what do you mean do we have enough for retirement I don't know I don't know and so she's giving them numbers and will farell is like no but we have $401,000 in this account she was like no that's your 401k I was like okay so again 401K is always through your employer uh versus like a Roth IRA if you earn income anyone can you know apply for a ralth area but your employer hopefully will have a 401k for you as a company benefit which is great and then when you think about a 401k versus a Roth IRA remember this match beats Roth beats traditional so always go up to your company match and then whatever's left in your 15% go and fund your Roth IRA and then if you have any money left after you've maxed out your Roth IRA then you can move that money back over to your 401k and finish you know putting money into there but that's kind of the formula match beats Roth beats traditional all right number three seven years so this is kind of a trick that I use in my head if I'm having to do Fast Math when you're looking at your investing uh your accounts you're looking at retirement all the things if you have money in an investment and you don't put another penny in there's like this rule of like every seven years your money's going to double so if you need some quick math when it comes to retirement I love this because you can kind of instantly see okay I have this amount how much will I have in you know by the time I'm 65 and if you don't have a calculator right there or your phone which everyone will but you can just like okay every seven years it's going to double do the quick math to get you what you need to know all right spoiler alert the two most controversial numbers are coming up next but first I do want to tell you about something that is a total no-brainer and that is Christian Healthcare Ministries when you go against what Society thinks is quote normal it might seem weird at first but that is totally okay because we want you to be weird if that means you're doing things intentionally including how you spend your Healthcare dollars and one way to be intentional is with Christian Healthcare Ministries chm isn't health insurance they're a health cost sharing ministry that's helped hundreds of thousands of families like yours take care of healthc care costs without sacrificing their freedom Program start as low as $98 a month find out more and join at chministries.org budget that's chministries.org SL budgets all right number four the next number to remember is a 10% rate of return so people love and hate our rates of return that we throw out for examples here at ramsy some experts will use like 5 to 7% but you guys that is like very low uh where again for years we use 12% at Ramsey because it is showing the average but you can expect anywhere from 10 to 12% and even more and again it's going to depend on the year but even last year like when we like looked back I mean it was insane we had I mean Winston night which again are not like secret mutual funds but they were just out there for anyone to find and they were like 18% so like it is wild if it is a good year you're going to do great and if it's not a great year that's okay too that's going to happen but again the 10% rate of return is a pretty standard way to calculate what you're going to have and what you're going to see when it comes to your interest over the long call when you're looking at your retirement so if you are doing the math there use the Ramsey investment calculator uh but 10% is great but I mean even 12% is very realistic as well and this is one reason we also say to diversify your Investments um because when you actually don't have everything in one single stock that one stock may do great may not but when you diversify into mutual funds that's are 90 to 200 stock and so it is great to see like okay it's spread out amongst a lot of different companies so if the economy is doing great and doing fine you're going to see that rate of return which is awesome all right the fifth and final number to remember is an 8% withdrawal rate so 8% is what we say at Ramsey when you go to withdraw the percentage every single year when it comes to retirement and so there's some controversy around this because it is a pretty aggressive percentage I would say you know some industry you know say four to 5% but again you can kind of calculate and just understand that when it comes to inflation this is what you're looking at because you're saying okay here's what my money's going to grow to here's going to be the reality of living in the you know 30 years from now and what things are going to cost and if you take money out you know again 8% if you're making 12% of your money you're going to be fine but the more conservative approach is around that more 4% so again talk to your investment professional uh when you're looking at all of this especially if you're getting close to retirement age because that percentage is going to be important to you now you can memorize dozens of retirement numbers but ultimately what's going to give you peace of mind is having a professional guide you so I just mentioned a investment professional but again having somebody that does this day in and day out is so key so I highly recommend connecting with a smart Vestor Pro I'll leave a link down below so you can get connected if you want to but sitting with someone to look at all the numbers of your investing um especially when it comes to retirement is so so key and at any stage of investing you definitely want to catch my episode on how to invest the right way in 2025 you can click right here or if you're listening on podcast I will put a link in the description all right you guys remember to take control of your money and create a life you love
