I know there are some skeptics out there, but I am here to assure you that it can happen to anyone. How so? Let me explain.
We just got to do some math.
Historically the stock market has returned at least ~10% over the last 30 years vs. real estate that has only returned about ~4%.
If you stick with the market over the course of that time, you can make it into millionaire status.
Compound interest is our friend. If you want to get to 1,000,000, then you just have to set aside some funds every year and then let compound interest do its thing.
If you invest $5,600 a year, over 30 years, you will have over a million saved ($1,013,283.18). Not too shabby.
If 30 years is too long for you, then just play with the numbers.
Investing $9,300 over 25 years, would net you ($1,006,090.42).
Investing $16,000 over 20 years, will net you ($1,008,039.99).
So you see, it is possible.
You just have to be willing and able to put the money aside.
Even after the dot-com bust of the 2000’s, the Great Recession, wars, 9/11, the search for capturing Bin Laden and 6 presidents the market has continued to rise.
After doing some research, the best place to park this money, water it and watch it grow seems to be the Vanguard index fund VTSAX. Why you ask? Basically, this index fund is not only low in cost at ~0.04%, but it includes the entire US equity market with over 3600 stocks!
It is your one stop shop for investing.
It’s the super Walmart of stocks. And like Walmart, it is open and working for you 24/7.
Why not the Vanguard 500 index fund VFIAX? Well this fund is limited in scope as it only includes the 500 largest companies in America. The VTSAX has them all.
In addition, the best part about an index fund is that if a company starts to slide due to bad management, scandal, hostile takeover or a combination of the three, then they are cut form the index and another company that has a stellar performance and track record takes its place.
Thereby, making sure your fund never goes to $0 and you continue to make money no matter whether or not a business goes bankrupt or sells to a competitor.
Meaning you will not ever lose all of your money.
Simply put, it is like if this fund plays in the mud with the other kids, gets dirty, then it will take itself to the car wash and start fresh playing with a new group of kids.
I think the reason most folks don’t get to this level is because they are too busy focusing on today instead of on tomorrow. I remember reading a quote that still has a profound effect on me today.
It went like this: The wealthy plan for three generations. The poor plan for Saturday night.
I get chills every time I think about it.
As humans, we are hard-wired to focus on what is right in front of us. It is difficult to see and plan for something that is years or even decades away.
However, we must. Our future selves are depending on us to do so.
Those years are going to go by anyway so why get so caught up in how long it will take you to save a million. Why not just do it.
I feel too many folks get caught up thinking that they need a high income to get rich.
Hate to break it to you, but tons of high earners go broke!
Folks are so busy worrying about what doctors, lawyers, sports stars or entertainers are making, that they forget what really matters isn’t what you make, it’s what you keep.
I’ve heard of couples making $250k a year saying they broke! What gives? That is more than ~96% of Americans. An income that size puts them in the top ~4% of income. But most folks do not eve have that amount in retirement savings, let alone making it as an annual income.
According to Business Insider, The average 401(k) balance is $92,148, according to a 2019 Vanguard analysis of over 5 million 401(k) plans issued by the company. But most people don’t have that amount of retirement savings. The median 401(k) balance is $22,217, a better indicator of what the majority of Americans have saved for retirement.
So a high income don’t mean squat if you squander it.
Don’t let this be you.
Change the conversation and get your spending under control so you can put that $6,000, $9,300 or $16,000 in your retirement account every year and earn your way to a fortune.
Please excuse the clickety-clack of my keyboard while I type ferociously thus, breaking the eloquent silence of God and nature.
As I write this the U.S. is in the midst of a global health pandemic. The Coronavirus has caused worldwide panic the likes of which I have never seen.
What is being labeled as Black Monday 2020, March 9, the Dow’s worst single-day point drop in U.S. market history. A record $20.2 billion has been pulled from stocks on March 13, the largest daily outflow ever.
This is different from the financial crisis of 2008-09, as it was a mortgage crisis not a health crisis then, but this is now what will likely lead to a financial and housing crisis. The economy has gone into a recession.
There were 3.3 million unemployment applications submitted last week alone. They are estimating 3.5 million submissions next week.
Over 500,000 workers across the hospitality, retail, and restaurant sectors have been furloughed indefinitely.
Store shelves are bare and low on necessities. Milk, bread, and eggs are some of the first items to go. Toilet paper is now the currency of the realm.
Schools, churches, libraries and hair salons are closed. It is pretty certain that millions of small businesses will close and never open their doors again.
Many large retailers may become insolvent and close their doors permanently.
Rent strikes are popping up all over the country in response to stay-at-home and shelter-in-place orders from state governors. However, it is April 1st and the rent is due.
As all of this is going on around me, I have to make a judgment call.
My hand is hovering over the buy button in my 401(k) account. My inner voice is saying go for it. You did the math. You did like financial blogger FIREcracker said and I mathed shit up! I knew I could come out ahead when the markets rebound. Stocks are on sale. I’m going down to the mat with the bear market. I’ve been here before and come back up every time. I take a deep breath and hit submit.
I have now bought over a hundred shares of various stocks as of March 31. Before, the market started crashing I transferred over $84,000 out of multiple stock funds and placed my bet on one Vanguard 500 index fund over the last two years. Why you ask? I’m taking my cues from a historical data approach and a sprinkle of Buffet wisdom.
Back in 2013, in a letter to shareholders, Buffet gave a piece of advice to the trustee of his estate after he passes, “wife’s inheritance has been told to put 90% of her money into a stock index fund and 10% into short-term government bonds.”
A portfolio set for a 90/10 allocation over a period from 1900-2014 had a fail rate of 2.3%. That means a success rate of 97.7%! Therefore, I am not scared.
Others are panicking, but I choose to keep a cool head. My investing advice is sprinkle some Buffet on it. It’s the wild west out here. I could place a huge bet and get my wings clipped like Icarus for traveling too close to the fire of the market. After all, it is a fire sale on stocks going on right now.
However, I can’t let fear stop me. I have weighed the risks. And decided to take those calculated risks.
You see I have 100 years of stock market knowledge behind me. Past results do not guarantee future results, but whenever history turns it backs on the market, then during the rally the market turns it back on you.
Those who do not feed the beast are later consumed by it. Financial literacy has been my guiding light in these dark times we suddenly found ourselves in.
I have been thrown in a cave with the bear market, but like Yogi, I have learned to be smarter than the average bear.
Some of you may be surprised that I am using Yogi Bear as inspiration to invest, but let’s not forget he always seemed to outsmart Ranger Smith and get that coveted picnic basket.
Image from Wikipedia
Therefore, fear will not take me under for I have knowledge my friends. And knowledge is the slayer of fear. While Buffy slays vampires, I slay market gyrations.
I like to take Buffet’s advice to bet on America. He says, “From a standing start 240 years ago — a span of time less than triple my days on earth — Americans have combined human ingenuity, a market system, a tide of talented and ambitious immigrants, and the rule of law to deliver abundance beyond any dreams of our forefathers.”
Yes, indeed America has.
That is incredible growth for a country that was just started with 13 original colonies in 1607 to become the biggest economy in the world, as other civilizations are far older than America.
It must have felt the same way for Neal Armstrong when he took those first steps on the moon for mankind in 1968.
That is incredible growth to go from walking on the ground, to the rocket, to the moon considering less than 70 years ago man had just learned how to fly in a little place called Kitty Hawk.
And when I threw open my personal finance go-to book, it looks as if I am not the only one who calls on the sage advice of the finance world’s Obi-Wan.
I found that financial blogger J.D. Roth of Get Rich Slowly also listens to the man they call “The Oracle of Omaha” Warren Buffet.
Here is an excerpt from the 2009 New York Times best-selling book I Will Teach You to be Rich: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works by Ramit Sethi. The blog post was titled: HOW TO WRESTLE WITH A BEAR—AND WIN Why I’m Not Worried About the Economy.
Wall Street is fear-stricken it will have banks and businesses go under and lose countless millions in the process.
Main Street is panicked that it can’t make rent to pay Wall Street.
When Wall Street head honcho and real estate billionaire Thomas Barrack Jr. speaks of commercial mortgages being on the brink of collapse, you spark panic all around you.
Mr. Barrack of Colony Capital predicts a “domino effect” of catastrophic economic consequences without prompt action to keep borrowers from defaulting.
I know that may keep some people on the bench, but I prefer to keep swinging for the fences.
You’ll never get a hit from the dugout.
Millionaires are made of Teflon. They keep betting when the house is cleaning up. They just keep on swinging. You miss 100% of every shot you don’t take.
I once remember reading that millionaire’s know they are made by saving ten bucks at a time.
Pundits are instilling fear when they should be telling long-term investors to stay the course. The wealthy know better. They keep investing because that’s what winners do.
Here is Suze Orman’s FIRE protection gear: $5 million dollars to retire early. Really? Do tell. Care to elaborate. Absolutely.
It was around late 2018 that I heard talk of Suze Orman’s thoughts on the FIRE movement.
The rumblings in the financial blogsphere was that when Suze was asked her opinion about the FIRE movement on the Paula Pant podcast Afford Anything and she says, “I hate it, I hate it, I hate it.”
Suze told Paula Pant that $2 million isn’t enough for early retirement. At a 4 percent withdrawal rate, that’s $80,000 per year, which she says isn’t enough to protect you “when the floods come.”
“If you only have a few hundred thousand, or a million, or two million dollars, I’m here to tell you … if a catastrophe happens, if something happens, what are you going to do? You are going to burn up alive.”
The “Suze Slapdown” of ’18 was coined. And I thought watching WWE Smackdown was tough. Whew! They ain’t got nothing on Suze when it comes to laying the smackdown on finances.
She made headlines for saying that people who buy a daily latte are “peeing $1 million down the drain as you are drinking that coffee.” On Suze’s watch, spending at Starbucks SBUX is a no-no.
Let’s not drop out of corporate America on a whim and stop working. Get back to work.
Check out the tweet below that 2020 Democratic Presidential candidate Bernie Sanders tweeted out last year to see what I mean.
Wealthy TV "experts" are shaming millennials for buying coffee and avocado toast. But young people are broke because they’re drowning in debt and low wages.
The ruling class wants to divide the young and old to distract us from an economy that’s rigged for the richest 1%. pic.twitter.com/v4LCNpoExU
Suze Orman’s the sky is falling attitude about retiring early is not so far-fetched now during the coronavirus.
For anyone who isn’t up to speed on the FIRE acronym, it stands for Financial Independence, Retire Early. I am all for Financial Independence (FI).
This is me. Financial Independence: count me in!
Retire Early: slow down tito!
The focus of FIRE is to retire early by stopping the corporate grind and ending the rat race in your 30s or 40s, and not 55 or 65.
However, I am not yet ready to be put out to pasture. Luckily, other leaders in the FIRE movement gave some clarification and said that FIRE is not about stopping work, but finding your passion and earning passive income streams that keeps the money flowing.
The goal is to live life On. Your. Terms. So, I thought to myself okay. I can live with that.
Saving 25 times your current income and then retiring before age 40 without continuing to make money is risky.
The notion is that you can then afford to live off of your savings by limiting your withdrawals to just 4% of your assets each year.
Meaning if you earn $75,000 a year, then you need to save about $1.9 million before walking away from work. Money that was supposed to last starting from age 65, now has to starting from age 35.
The millennial had caught the FIRE bug and she was looking to hang it up within two years.
“Well, how much money do you have?” Orman asked. “Two or three million?”
No.
“A million?”
No.
“$250,000?”
Yes, but with some debt.
“Really?” Orman could only shake her head.
“Don’t talk to me about it. If that’s what you want to do, go ahead. But 40 years from now, I hope you remember everything I’ve said.”— Suze Orman, on retiring in your 20s
According to Suze, “time is the most important ingredient in your financial recipe.”
As financial blogger Mr. Money Mustache put it bluntly: “In the interview, Suze Orman goes on and on about what might go wrong, and how you need an incredible amount of money saved to protect you, just in case. But this thinking is completely backwards – money will not cure your fear, as megamillionaire Suze proves so clearly. Most high-income people are still within just a few paychecks of insolvency, because it is possible to blow almost any paycheck, simply by adding or upgrading more cars, houses, and vacations. Physical health FIRST: Salads and barbells every day, no goddamned excuses.”
Real estate financial expert and FIRE member Coach Carson posted some great advice on Suze’s opinion: “As Paula said after the interview, we should all make a practice of listening deeply to others (especially if you disagree). If you can reserve judgment temporarily, you can always learn something.”
Coach Carson says time not money is the most precious thing we have. The biggest regret is time wasted when people are on their deathbed. People do not wish they worked more or spent more time in that cubicle or corner office.
Very true. Washington Post financial columnist, Michelle Singletary, also weighed in on the interview. She says “let’s also put this debate in perspective. Many people aren’t saving enough to retire at all – early or late.”
I remember when my portfolio hit $100,000. It took half the time to get the next $100,000 and zoom to $200,000. Next stop, $250,000. That’s right a quarter of a million.
Then I was looking to moving on up like The Jeffersons to the tune of $300,000, $400,000, $500,000 and beyond. I only move forwards. I never look backwards. I could still work for another 30 years if I want to. Without putting in another penny, if I let this money ride I could have between $1 million and $2.6 million dollars. And that is if I stop investing. There is no way I am doing that.
I live for today. I live in the moment. I stop and smell the roses. I enjoy the present, but save like I am going to live forever.
Stop worrying about the world ending today. It’s already tomorrow in Australia. – Charles M. Schulz, creator of the Peanuts
I like to plan in advance. I have a plan to create a plan.
“If plan A doesn’t work, the alphabet has 25 more letters – 204 if you’re in Japan.”― Claire Cook, Seven Year Switch
If I want something, then I go get if. I get off my duff and go make it happen. Don’t complain. Go do something about it. To quote Mindy Kaling, “We are all just a treadmill and six laser hair removal treatments from being Ryan Reynolds and Blake Lively.”
Ask for credit when you don’t need it. Credit dries up like tears in a recession. That’s just my two cents. Back in the 2008-09 recession, they cut my credit lines in half. Overnight *poof* half my credit limits were gone. Like a puff of smoke.
The thing is that work gives us something to do. It lets humans be productive.
If you have $1.5 million at age 65, you have a much shorter retirement to spend on versus at 37.
What really makes the difference is that by age 55-60 many people are empty nesters, own a home, and already own most of their possessions.
You have a lot less things to buy because you have what you need already.
When you are 35, you may still have no kids, are just starting, or have a young family. You have costs that are still rising like inflation.
Empty nesters are not worried about paying for college. Its paid for. That’s in their rear-view. Juniors 529 is spent.
If you are still raising kids, it is likely you will need a decent income and a job. Kids cost…a lot. Most people are still buying homes, cars and having kids well into their 40s these days.
One of the biggest expenses that a job helps subsidize is healthcare.
Financial blogger Financial Samurai puts this into perspective: “Just know that once you get to your target number, you might find that your needs have changed. Life is unpredictable. A job helps you subsidize health care costs that are increasingly becoming a racket IMO, but it would help reduce our $2,380/month health care bill. However, I am grateful for every day.”
You want to retire early. Here is what Suze has to say.
Orman: “It would have to be in the millions . . . You need at least $5 million, $6 million.” (She later says $10 million to account for taxes.)
FIRE proponents fired back at Orman that she has it all wrong.
Really? When a government shutdown causes people to be in soup kitchen lines, then I beg to differ. Here were some of the things I read online during the 35-day government shutdown last year:
“I only have $1.06 in my bank account. I don’t know what I am going to do.”
“I can’t pay my bills.”
“I can’t afford groceries.”
“I’m scared I won’t be able to pay my rent or mortgage.”
“I can’t miss one paycheck.”
Not even one check? Even I try to keep a minimum of $10,000 in the bank at all times in savings. Just in case sh*t happens. I need that rainy day fund because when it rains it pours. Keeping a 3-6 month rainy day fund is what helps me sleep at night.
My 1-tweet financial plan government #shutdown edition. 😉
1. Save a 9-month emergency fund 2. Instead of maxing Roth IRA use extra funds for your rainy day fund 3. Do not get any student loans 4. Do not buy a new car, home, or go on vacation until rainy day acct 100% funded pic.twitter.com/Xmslbml3qC
Now to be fair, the FIRE movement is about saving and investing your money. The more, the better. If you are practicing FIRE, then, in theory, you should be able to weather any storm.
Meanwhile, Orman isn’t sweating her emergence as somewhat of a villain in the FIRE community.
Now that COVID-19 has swept across the globe, it looks as if Suze may have been on to something when she always says, “hope for the best, but always plan for the worst.”
On one of her most recent podcasts she stated that a lot of her advice on saving that eight-month emergency fund has come to roost. She now thinks you need a 3-year emergency fund.
I have always been more about FI than RE because no matter what happens in this world, I know one thing to be sure; you will always need money in the bank.
Now I’m going to sign off on this post the same way Suze Orman ended her show on CNBC every night, “now you stay safe.”
If you were part of the millions who lost a small fortune in the 2008-2009 financial crisis, then this Coronvirus fear and stock market shocks should be a cakewalk for you.
It felt just like this a decade ago, but it lasted for like 15 months.
But I’m here to tell you, “Don’t panic.” Since the Great Depression, America has survived World War II, The Cuban Missile Crisis, SARS, 9/11, and the Great Financial Crisis.
As Annie once sang: The sun will come out Tomorrow Bet your bottom dollar That tomorrow There’ll be sun!
We will get through this. You just have to buckle up and get through the ride like any rollercoaster; it has to come to an end.
Markets dropped 1,100 points on Thursday. That just means stocks are on sale.
I’m strolling down the stock market isles grabbing everything I can get my hands on.
This isn’t the time to hide. Stay and fight for your 401(k). It’s the time to run to the nearest online brokerage and scoop up some stocks on sale.
Berkshire Hathaway is sitting on $100 Billion cash just waiting for another 2008-2009 so they can get those deals.
Nobody wants to pay $3,000 for one share of the S&P when you can get it for cheaper.
So go out there and find some bargains!
SHOULD YOU BUY OR SALE
“Fearful when others are greedy and greedy when others are fearful.” – Warren Buffet
I once read a story about a famous investor who in 1939, when World War II began in Europe, the 26-year-old investor borrowed $10,000 and bought 100 shares each in 104 companies that were selling at $1 a share or less, including 34 in bankruptcy.
A few years later, he made large profits on 100 of the companies; four turned out to be worthless.
This became the foundation for his $13 Billion global growth fund and the start of his road to wealth. He did not let fear stop him. His own the world philosophy made him a billionaire.
Sir Templeton looked fear in the face and marched ahead anyway.
Trust your gut and don’t make any decisions unless you know what you want to do. Fear is no place to make decisions from.
When you are coming from a place of great loss, you don’t sell the house, cut your hair, or make any big decisions until you are back in a place of control over your emotions. At least, that is what all the books say.
Same rules apply when investing. Buy when you are knowledgeable and ready. Not scared.
Knowledge is the slayer of fear.
FLIP A COIN
I could tell you what you should buy. The gurus and financial pundits will tell you that you should invest in this or that, blah, blah, blah, etc. etc.
Well here at Greenbacks Magnet, we keep it simple.
Just buy a good quality total index fund and keep it moving.
Studies have shown that no one can time the market. If you put 25 random stocks on a dartboard, you could do no worse than an active fund manager could by throwing darts to pick your investments.
It’s like the flip of a coin. 50/50 odds or worse. Tails you lose. Heads the house wins.
If you buy the whole market, you are bound to get some winners in there.
PUT YOUR FACE MASK ON FIRST
They say face masks are being bought up all over the world.
The mark up is getting unbelievable as some places are charging three times the normal going rate.
The surgeon general says masks are only good for those already infected to not continue to spread the virus.
Those that are healthy are wasting their money because a mask will not stop them from catching it.
Therefore, instead of wasting money on overpriced masks just invest in the company that makes them. They are making a killing right now!
Increase your wealth portfolio and put on your fiscal facemask for your future generations.
Your future self will thank you for investing that money.
I like sports. Watching sports. Playing sports. It’s great exercise and a way to encourage team building, leadership, and character.
However, going to an actual sporting event is a whole other matter entirely. I did some research and found out that regularly going to sporting events can make you BROKE!
Going to see your favorite sports team could put your bank account on empty faster than a housewife with all-access to your credit cards!
I’m not talking $50 tickets here. Oh no. We are talking thousand of dollars to watch Brady, LeBron, and Bryce Harper do what they do best live and in person. It will cost you.
This year’s Super Bowl is coming up on Sunday and if you want to get into the stadium, you better be prepared to give up a couple mortgage payments.
Here is everything you need to know about the upcoming Super Bowl and how it can really cost you $2 million bucks!
EVERYTHING YOU NEED TO KNOW ABOUT SUPER BOWL LIV
Super Bowl LIV: San Francisco 49ers vs. Kansas City Chiefs Hard Rock Stadium – Miami Gardens, FL on Sun Feb 2 at 630 PM. 347 Don Shula Drive Miami Gardens, FL 33056
After doing some research on Super Bowl ticket pricing, I found a comprehensive listing of the event on vividseats.com. This information comes straight from their website.
Super Bowl Ticket Information
Your Super Bowl tickets are available at Vivid Seats – the football fan’s top destination for tickets to the biggest game in American sports. Buy Super Bowl 54 tickets for the grand finale taking place on Feb. 2, 2020 at Hard Rock Stadium, home of the Miami Dolphins. Vivid Seats has long been a trusted partner of football fans attending the NFL’s marquee game. Featuring an industry-best customer service center and flexible delivery methods, you can rely on our ticket marketplace as your hassle-free connection to great Super Bowl 2020 tickets. Call 866.827.7094 for personalized order assistance today with Super Bowl LIV tickets today.
Super Bowl Ticket Prices 2020
How Much Are Super Bowl Tickets for 2020? No matter what you’re looking to spend, Vivid Seats has Super Bowl 2020 tickets to fit your budget. Super Bowl tickets cost $7655 this year on average.
How much is a Super Bowl ticket for 2020? At Vivid Seats, we have tickets to the 2020 Super Bowl starting at $4815 with an average price of $7655.
Cheapest Super Bowl Tickets While even cheap 2020 Super Bowl tickets are going to be more expensive than most NFL games, there are still great deals to be found. Prices will fluctuate based on many factors such as inventory and demand, so be sure to get your cheap Super Bowl tickets before it’s too late! The cheapest Super Bowl tickets cost $4815.
How do you get tickets to the Super Bowl? Snagging tickets to the Super Bowl can be tricky, but at Vivid Seats, we make it easy to find your perfect tickets to the 2020 Super Bowl. Browse our wide selection of Super Bowl tickets today!
Who is performing at the Super Bowl 2020 halftime show? On Sept. 26, the NFL announced that Jennifer Lopez (JLo) and Shakira would perform at the Super Bowl 54 halftime show. Demi Lovato will sing the national anthem.
When Is the Super Bowl? Super Bowl 54 will take place on Sunday, February 2, 2020.
Future Super Bowl Locations Super Bowl 2021: Tampa, Fla. Super Bowl 2022: Inglewood, Calif. Super Bowl 2023: Glendale, Ariz. Super Bowl 2024: New Orleans
YOU HAVE TO PAY THE COST TO BE THE BOSS OR SIT NEAR THEM
What really jumped out at me was the average ticket price of $7,655. This is an insane amount of money to spend on one day for a few hours of entertainment. I would rather invest that money.
Matter of fact, I could invest in all the companies that are sponsoring the Super Bowl such as Frito Lay, Bud-light, Live Nation, Ticketmaster, Delta Airlines, Marriott Hotel, and Fox. All these companies have a stake in the game and are making a mint off all those SB parties and tailgating. Let me get in on the action too!
According to Marketwatch, tickets purchased through Ticketmaster LYV, -2.30%, the official ticketing partner of the NFL, is higher than any other year in the past six years, the company said Tuesday.
TICKET PRICES ON ALL THE MAJOR TICKETING SITES
It would be safe to say that there is a monopoly going on with where you can purchase tickets. Much like healthcare in the America, buying event tickets is starting to become a racket.
I know folks that say healthcare will cost their families $1,100 to $1,800 or more per month. That is outrageous!
It is eye-popping prices like that which case people to forgo getting teeth pulled and limping around on crutches for a month before finally getting that sprained ACL looked at.
Ticket gouging is all the rage and I feel the general public is being taken advantage of. However, if you do not agree with me that’s cool. I can only speak for myself in saying I am not willing to pay $5,000 on one event unless I had that much income or more coming in off my passive investments every month.
That being said, I am taking you behind the curtain of Super Bowl ticket prices.
Prepare yourself and gird your loins.
Ticketmaster prices ranged from $4,950 to $26,125 for VIP. That is what some colleges are charges for anywhere between one semester and four years of college!
Vivid Seats prices ranged from $4,900 to $14,136. And unless this was a typo, a 11-person suite would cost $327,020 each. Are you freaking kidding me?! That is the cost of a house! If you invest that money and let it ride, you could be a millionaire in like 12 years!
StubHub prices ranged from $4,945 to $49,000. Again, investing this money and letting it ride would make you a multimillionaire.
Over 40 years with a 10% interest rate, you could have $2,217,703.52 in your retirement account and be a 401(k) multimillionaire!
Granted most people are not willing or able to cough up this dough, but for those thinking able maxing out 10 credit cards to be treated like a VIP for like six hours you are giving up $2 million.
SeatGeek prices ranged from $4,448 to $17,425. You could send you kid to college or on a European immersive education endeavor to learn different cultures and languages.
Fun Fact: The late great NBA legend Kobe Bryant spoke Italian fluently as he lived abroad with his family as a kid while his father played in the NBA. May he forever rest in peace.
Super Bowl LII: New England Patriots vs Philadelphia Eagles
2018-02-04
$5,373
Super Bowl LI: Atlanta Falcons vs New England Patriots
2017-02-05
$3,976
Super Bowl 50: Denver Broncos vs Carolina Panthers
2016-02-07
$4,531
Super Bowl XLIX: New England Patriots vs Seattle Seahawks
2015-02-01
$4,268
Super Bowl XLVIII: Denver Broncos vs Seattle Seahawks
2014-02-02
$2,598
According to CBS, $40,000 Super Bowl tickets could get you admitted to the “72 Club,” so-named after the Miami Dolphins’ perfect 1972 season.
Their $40,000 ticket includes black car service to and from Hard Rock Stadium, a private lane on stadium grounds to bypass traffic, a private concert from an A-list performer, high-end food and booze, and even access to the field for the post-game celebration.
And if you want more luxury and exclusiveness there’s an even higher level for the V-VIPs: Nine open-air living room suites that Walls says feel “like sitting in the back of a yacht, only at the 50-yard line.” Priced at $750,000 per suite, it’ll cost about as much as a yacht, too.
Again, investing this money could make you a millionaire in like three years. Obviously, you have to be a high roller with a net worth of like $25 million to even consider this kind of excess IMO.
Here’s where most millennial’s are investing. You could do the same instead of going to sports events.
Heck, that $750,000 swanky VIP suite cost is my FIRE number as that amount spits off investment enough income for me to live off of and not have to work again.
I put my money into index funds and let it ride. You could put it into 500 index funds like me. The S&P 500 is up 200%! Get in on this market!
Especially, considering that 50% of Americans are not invested in the stock market and have $0 in savings and investments.
But this is your life. You decide. You want to spend $40,000 to watch football live or let that money ride in Mr. Market for 40 years and have $2 million in net worth?
Invest your money into you and your family instead of sports teams and their billionaire owners.
“All the world is made of faith, and trust, and pixie dust.” ― J.M. Barrie, Peter Pan
Trust is a five-letter word. A word that is small in size, but whose meaning is of monumental importance.
Today on Greenbacks Magnet we are spilling the tea and reading the tea leaves on the topic of personal finance.
Somewhat like Jalen and Jacoby do on their podcast.
This is a no-holds barred conversation about getting your fiscal house in order.
If I had a podcast right now, I have several friends or family members that could be my partner on this magic carpet ride. Aladdin had Princess Jasmine. Jordan had Scottie Pippen. Keenan had Kel. Barack has Michelle. Oprah has Gayle. Key had Peele. Batman has Robin. Kermit the Frog has Miss Piggy. Jalen has Jacoby.
Having a partner just makes things more fun.
I ask my significant other all the time, “Are you gonna back me up?! Are you gonna be the pip to my Gladys?!” I need people with good character that I can trust around me.
It’s like my man Shakespeare says, “Love all, trust a few, do wrong to none.” ― William Shakespeare, All’s Well That Ends Well
Trusting people with your money comes with huge financial risks! And I notice it is more risk than reward. You have to be on top of things when it comes to your money.
So today, I am going to give you some real stories of private conversations I have been in, eavesdropped on, and stood witness to in hopes it might help you more easily navigate these hostile fiscal waters out here in these mean streets.
I’m doing it Jalen Rose and David Jacoby style for those of you ESPN fans out there, you know what I’m talking about.
I want you to trust my advice, and me but I also want you to verify it.
Let’s get started and dive right in.
In the spirit of Jalen and Jacoby:
Got to give the people…
Give the people what?
What they want!
What do they want?
Current events! They want you to spit that hot fire!
And in this blogs case FIRE is Financial Independence, Retire Early!
TRUST, BUT VERIFY
That is a famous quote uttered by former President Ronald Reagan during the Cold War.
He was a former Hollywood actor turned politician, which was unheard of at the time in 1981. My how times have changed.
Reagan also gave us Reaganomics, also known as Voodoo Economics, it works as crazy as it sounds. Voodoo (magic) is French in origin and hails from Louisiana around the 1700’s, which is before the Louisiana Purchase between the United States and France, negotiated by President Thomas Jefferson and Napoleon in 1803.
Therefore, the term Voodoo Economics simply means magic economics or finances (magic money).
There goes that Peter Pan quote I put at the top circling back to us as magic money is like pixie dust! It just doesn’t exist! In my mind, this is like creating money or great finances out of thin air.
It’s kind of how 50 Cent said he owed $8 million worth of Bitcoin when he owed nothing and created $8 million of wealth for himself in the eyes of his followers on Instagram because we are all just, and I roll my eyes as I type this, “living for the Gram.” I discuss fifty and the Gram on this post.
According to Psychologytoday.com, Reaganomics is this in that “the simple answer: when the outcome is essential and matters more than the relationship, use “trust, but verify.” When the relationship matters more than any single outcome, don’t use it.” Basically, if you are unsure of how to proceed in making a decision where the outcome can be life-changing, then do your research to uncover the facts before saying yes.
In my opinion, that means reviewing credit reports before walking down the aisle.
Why should I commit to someone with four felonies, two bankruptcies, a property lien and $50,000 of back taxes owed to the IRS without knowing what I am getting myself into. You would be surprised what you uncover with a simple credit report.
A woman has a right to say no or change her mind about marriage all the way until the time she is in front of the minister. It’s cool to trust your partner when they say they paid off that Neiman Marcus credit card, but request that copy of the credit report baby to verify.
WHAT IS REAGANOMICS?
Reaganomics, or Reaganism, refers to the economic policies promoted by U.S. President Ronald Reagan during the 1980s.
The economic policies of the former US president Ronald Reagan, associated especially with the reduction of taxes and the promotion of unrestricted free-market activity. “the claim that cutting taxes generates more revenue was a key element of Reaganomics”
When looking up Voodoo Economics this pops up in the search: an economic policy perceived as being unrealistic and ill-advised, in particular a policy of maintaining or increasing levels of public spending while reducing taxation. “as governor, he put into practice the same voodoo economics that he would later impose on the country as president”
I will give it to you in layman’s terms, give more to the rich and their gains of money and benefits should also find it’s way down to everyone else.
It’s the reverse of Robinhood’s theory of taking from the rich and giving to the poor, by instead giving to the rich. There you have it. I just gave you the premise of Trickle-down Economics.
WHAT IS TRICKLE-DOWN ECONOMICS?
Great question. Trickle-down economics, also called trickle-down theory, refers to the economic proposition that taxes on businesses and the wealthy in society should be reduced as a means to stimulate business investment in the short term and benefit society at large in the long term.
According to thebalance.com writer Kimberly Amadeo, Trickle–down economics is a theory that claims benefits for the wealthy trickle down to everyone else. These benefits are tax cuts on businesses, high-income earners, capital gains, and dividends. … All of this expansion will trickle down to workers.
I don’t know about that.
When I look to my left on the West Coast, I see massive homelessness.
When I look to my right on the East Coast, I see wage stagnation.
Taxes got cut, but people are in even more debt. When the top 10% of the richest American households own 84% of the stock market wealth in the country something is terribly askew.
I call gentle bullshit on all this record stock market gains that is causing the country to grow wealth for all.
It seems more that instead of lifting all boats to prosperity for 99% of the population, stocks are lifting a few yachts of the 1%.
In the illustrious words of Sheldon Cooper, pardon me, I mean Dr. Cooper, this is a bunch of hokum. I mean the term even has the word trick in it. Hello?
WHEN IN ROME, TAKE OUT MORE DEBT
I have seen stuff you would not believe people have done when it comes to their money.
I saw a couple of government workers deciding to take on an $800,000 mortgage. Don’t ask me why. After 30 years of payments, they will have paid $1.6 million for a pile of bricks they are never at because they are always at work. Then the husband loses his job and they lose the house!
If you do not have $1.6 million in retirement or other assets, then you cannot afford or should not buy a home for three-quarters of a million.
Since, many college students see their friends take out loans to fund spring break trips they feel they are entitled to do it too! I actually knew someone who got a boob job and paid off a car with a student loan refund.
I hear tons of people say they are never going to retire, can’t afford college, and will work forever but no one wants to downsize their $400,000 mortgage. If they want it, they get it. How you ask? Do what the neighbors did and take out a HELOC.
A FLY ON THE FISCAL WALL
I’m about to spill that tea so don’t blink or you might miss it!
Overheard around an office watercooler.
“I owe $100,000 in back property taxes to the IRS.”
“I am in $25,000 worth of credit card debt. I am on a fixed income. My granddaughter was supposed to use my credit card for a one-time charge to pay her auto insurance when she got a new car and then I found out she never stopped it and I paid for the whole year! When I asked her for the money back she said she didn’t have it and then told me about all the bills she has.”
A male-exotic dancer told me, “I strip because I don’t make enough at my job to live on that.”
The guy who can’t pay his child support who owns a Range Rover and house is constantly in danger of foreclosure.
A beauty salon owner who confided in me. Her child support payment is $25 a month and the father keeps quitting his job so he don’t have to pay it! At the tender age of 25, she also decided to lease a beauty shop and buy a home. She said, “It’s like paying two mortgages.”
Another friend.
“I would rather struggle today and get my forever home, than buy a starter home and have a smaller home and have to move.”
A cousin.
“I can’t make too much or they will take me off Section 8 housing.”
Just FYI, many safety net programs do not allow you to make too much or have too much in savings or assets. If you have more than $2,000 in checking, you could lose all income assistance benefits and NEVER be able to get back on. Essentially, keeping the poor trapped in a cycle of poverty.
CHANGE THE MONEY GAME
There is a saying. Control your money; control your life. When you know how money works life is easy. When you don’t, life is hard.
I read every book I can get my hands on about finance. I have learned about taxes, insurance, stocks, real estate, and entrepreneurship.
Here are a couple books I have read that changed my money mindset.
I stopped getting personal loans. It took me years to pay off a $20,000 personal loan. I took that $333 monthly payments and started saving money.
I once had a $448.65 car payment. I paid off the car and started investing that money.
I started studying the stock market.
I cut out buying clothes and all shopping and stared saving over $8,000 a year. I canceled subscriptions. Maybe Jillian Michaels may want to do the same as on her Instagram, cause you know we are all “living for the Gram,” she stated she would like to figure out how “like to get my American Express bill down.”
I only spend on things I love and I cut spending mercilessly on the things I don’t.
I transferred over $84,000 out of multiple stock funds and placed my bet on one 500 index fund.
I write money milestones.
The goal is to be a 401(k) millionaire.
By investing over 25% of my income into things like the VFINX, VFIAX, or VTSAX, I can make this dream a reality.
Milestone number one was $100,000 in Mr. Market. I hit that marker and kept on climbing.
The money starts accumulating faster like a freaking avalanche once you have that first $100k. The next stop was $200,000.
Then I started making my way to a quarter million.
I estimated that once you hit $250,000, then you can get to millionaire status in 14.5 to 23.5 years with a 6% or above interest rate. And that is without adding another dime.
Once you get to one-quarter of a million, the other three-quarters are not too far behind.
If you could invest $20,000 a year including employer match, you could be a millionaire in 10 years with a 10% return with a principal investment start of $250,000.
That first $100,000 is your capital to a better future. It plants the seed money from which the rest of the harvest will grow.
DROPPING DIMES LIKE SCROOGE MCDUCK AND OTHER MONEY HINTS
Dropping dimes used to mean putting a dime in a payphone to connect with someone.
Now it is used more figuratively than literally as in giving some knowledge in this case.
The reason I invest most of my money in index funds is this piece of advice from Warren Buffet.
He instructed the trustee in charge of his estate to invest 90 percent of his money into the S&P 500 for his wife after he dies.
Warren Buffet is worth $81 billion. Most of his wealth came after the age of 50. Buffet gained 99% of his wealth after 50. That 1% of his wealth took 50 years to build, the other $80 billion too like 25 years or less than half the time it took to get the first billion.
He had to create companies, invest, graduate from Columbia, start businesses, and save the excess for 50 years to create the other 99% of his wealth!
In farming, like 99% of the crop comes from just 2% of the seeds that survive. Every time you invest your money, you are sowing seeds for your future self.
In a book I read, they state three of their truths about money. She stated, “the Scarcity Mind- set taught me the three lessons that would eventually turn me into a millionaire:
Money is the most important thing in the world. Money is worth sacrificing for. Money is even worth bleeding for.
