Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.

Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the directions of someone who knows how to i.e an asset manager. You could earn anywhere between 10--40k with the right ones. Online businesses are a good bet too.

I might want to try out a manager this year, but the information on the internet is overwhelming. I know it's not appropriate, but you could mention a good one(s)?

Her name is Sonya lee Mitchell. Hope this helps

Thanks for this. You think I'm still eligible to use a financial advisor?

I'll suggest you find a mentor or someone with experience guide you especially in this recession. especially for your 401K, IRA and portfolio diversification.

@@harrisonjamie794 I agree, I thought I was doing alright profit wise, until I needed assistance with diversification, I reached out to a financial advisor and in less than a year I was just $51,000 shy away from $640k which is like 7x more than I make on my own..

@@BrunoLuke I've been thinking of going that route been holding on to a bunch of stocks that keeps tanking and I don't know if to keep holding or just dump them, think your Inv-coach could guide me with portfolio-restructuring..

@@harrisonjamie794 I've shuffled through a few advisors in the past, and KRISTIN GAIL CUNNINGHAM remains the most resourceful thus far. Her strategy proves profitable, and sustainable both in a bull & bear market. Most likely, her deets can be found on the net, so you can confirm yourself.

@@BrunoLuke Thank you so much! Found her webpage and left a message. Hopefully, she responds.

Not if she doesn’t need it. Maybe her 401k and savings is plenty for her.

Maybe she just doesn’t trust the banker’s anymore, my wealth will never be in form of a bank note again. Many running from this virus now. Play with fire and your get burned eventually. Cash out ASAP

I wanted to major in left-handed puppetry but I'm right handed, so chose 16th Century Polk Music! Still paying off my student loans. I leased a BMW cause I'm maxed out on five credit cards.

Right handed puppetry pays good though.

I'm just glad he stopped making fun of my underwater basket-weaving major and minor in bagpiping.

😂🤣😂

Ice Viking switch to right handed puppetry....

You are right. He didn't ask enough questions to draw the conclusion. For people who can't manage their money well, pension works better-as least it pays you to live as long as you're still breathing.

It should be treated person to person. For example my company completely pays my pension, I don't contribute whatsoever. Some have to contribute to a pension. Everyone is not the same, wish Dave would take that course of action

Seems like an important piece of information LOL. Also incredibly important: what would the yearly payout be for the pension? What are the spousal benefits? Medical benefits? What is the caller’s life expectancy? This is terrible advice and he doesn’t gather nearly enough information to answer the question.

It's the opposite where I work. They removed the lump sum option with the last change in the pension. Luckily I'm grandfathered on the old plan so I will still have both options.

For most members in my pension plan,it is a ponzi scheme. Gimme that lump sum while I am living

The pension bears the responsibility of paying a guaranteed amount, regardless of investment performance. It’s great to have both a pension and a defined contribution plan.

Not always. We took the lump sum because the pension amount was set and would never change.

not really. Like he said, if you die before or soon after taking pension payments you get really nothing. Same for SS

@@genxx2724 This is where I'm leaning. If you are truly about diversification in your portfolio, a guaranteed monthly income from a pension is a nice addition to your other investments that rely on the stock market or real estate which will have good and bad years. Also, most pension plans are backed up by the federal government, even if the company goes out of business.

All depends whether it’s a defined benefit or defined contribution plan

dan cussin around 300k. I know several people that jumped on it.

dan cussin best wishes to you! I retired on my 60th birthday and have no regrets. Life is good!

That’s not necessarily true because the roi on that initially invested lump sum would be more then the pension pays you

@@fredsystra7584 They didn't state what the monthly benefit amount is, so I don't think there is enough information to make that assertion.

A 26 year old is in his prime.

It's never too late!

You'll be so glad you started

It’s just important you start saving. Dave is great but learn from as many sources as possible. Read everything you can.

You have made a very wise decision.

Have heard of dividends? A married couple can earn up to 75k a year in qualified dividend payout every year tax free. Above that it's taxed at a lower rate. About 15%

Most people need a monthly pension because they live paycheck to paycheck. If you give them more, they just spend it like most large lottery winners. But everyone will have that pension in the form of Social Security. A work pension will just add to that quantity. But dave is right, the pension has to hold a lot of bonds which are paying nothing now.

At 65 years you need your money monthly, not 10 years later in investment to wait till 75 years old

The lump sum is calculated by an actuary based on ur life expectancy.

@@mbpark270 are you dumb or something?

Same with SS Small investment over the years a big return over the years.

I was going to type the same exact thing. The benefit is the most important question so you can compare it to the lump sum itself.

Absolutely! At 2600 a month, that is an effective 21% coupon rate on that principle, which you would hard pressed to match.

Help me understand…the $2,600/mo is drawing down from the $147k principle, correct?

@@krogdog Not exactly If I take a lump sum at retirement, the payment to me is about $150k which represents ONLY my contributions and interest earned. At that point, I am no longer a member of my employer's pension and out on my own. But, if I stay in the pension program when I retire (do not take out my lump sum) my employer's contributions (and interest those contributions earned over the years) will be added to the calculus. It is an incentive to stay in the retirement program and to not make a "run" on the pension fund. For me to collect the $2,600/mo I'm required to keep all contributions (mine and employer's) in the pension fund.

How is that possible? OMG 😳

@@BasicBeachCommunity1 It's not. Don't believe everything you read.

@@steve8803 My State pension is the best 36 month run in the last 10 years So for 27 years you were a janitor, the last 3 , a Dept Head $150K/year pension The amount you contribute is the payout but has nothing to do with the pension received

@@steve8803 My State pension is the best 36 month run in the last 10 years So for 27 years you were a janitor, the last 3 , a Dept Head $150K/year pension The amount you contribute is the payout but has nothing to do with the pension received

Well, one approach is to diversify investments acquired with the pension fund. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market downtrend.

True, proper asset allocation is critical. Furthermore, some folks employ hedging strategies or devote a portion of their portfolio to defensive assets that perform well during market downturns. Boomers have been engaging the services of advisors in handling pensions and investments for decades. Having an advisor assisted me in netting up to $3 million for retirement.

This conversation makes me realize how important it is to monitor the financial health of pension plans and understand how funds are invested. It's not something to be taken lightly. Please who is the advisor that guides you?

I started out with a California-Based advisor called 'Monica Selena Park' . Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. I'd suggest you look her up and let me know what you think

Thank you for this tip , I must say, Monica appears to be quite knowledgeable. After coming across her web page, I went through her resume and I must say, it was quite impressive. I reached out and scheduled a call

Yeah sounds like she needs the pension now to live and he just wants her to invest and keep going.

Honestly, with the low amount she’s quoting, I wouldn’t retire. That’s just not going to be enough to carry her through 30-40 years... possibly a third of that, at best. That may be Dave’s thought, to invest that and get another job to keep building with, but I don’t want to put words in his mouth. I have just seen too many times that someone like Dave gives advice for a specific set of circumstances and, the next thing you know, people are quoting that advice while applying it to every circumstance. This may be good advice for this person, but it would be disastrous for someone in my family situation. It’s so dangerous for people to take a statement out of context when planning a lifetime of income.

What was your work before you retired? How much is your monthly pension

Not to mention, profit should only be counted after you have paid off the property and after all the repair costs, etc. They say it's continuous cash flow...until it isn't. Large expenses like the ones you mentioned will eat into all that. It can turn into a liability.

@@globescape4771 this plus dealing with tenants, only seeing profit if the complex is near full capacity, and liabilities. No thank you. If I just went through a stressful life to build my wealth to be able to invest that much money, I don’t want to invest it into something stressful for during retirement. I’ll keep it in low cost index funds and be happy with stress free growth.

@Three Sixteen Update us in ten years

Honestly I've only been investing in my 401k for 10 years but I'm pretty solid at just under 11%

Since the inception of the SPDR S&P 500 ETF Trust, the fund achieved average annual returns of 9.96% (roughly 10%)

Totally. Uk government have plundered the pension schemes and even for government employees. A bird in the hand...!

nemo crazy ! Never know nowadays

It's not free we earn it with every hour we put in

Wchavez17 it is free because people work just like you and they don’t have a pension

@@kevinkidneyy Agreed. I missed getting grandfathered into my company's pension by 2 years in the earl 2000s. The coworkers who were grandfathered in are receiving a pension doing the same job as me so yeah...it is feee money.

The only things I see returning 12% are REITs which are kind of risky. I wish I knew where this guy gets his numbers from. He tosses out figures like 10 - 12% return like everyone out there can easily find that kind of return in some safe haven for their money. Such is NOT the case in the real world. Heck, I cannot see anywhere even reasonably safe that returns over 5% these days.

@@archangele1 So it's better than putting it in a bank.

@@archangele1 his numbers are an "average" over 5-8 or 10 years. If you check back on the market, it's legit.

@@Manatti06 That kind of reasoning on his part is what we call 'bracketing'. By this it is mean that you can pick any low starting time 8 years ago or so and then pick a month where the market was high and prove your point. I could do the same thing the other way. Like picking a time at the peak of the .com boom then a time in the middle of a future crash and say that it lost a lot. Historically, the market has grown. Unfortunately, the way trading is done today, it is all too easy to work the market if you have large sums of cash and if you work together with other big investors. It is still a thing of supply and demand. The issue is, can you afford to loose a lot of money. If you are young enough, you can probably wait out the market and make it back. If you are retired, you don't have that luxury of time. All too many over the past decade have lost a lot of money. Wall Street is pretty much a casino these days with all the insider trading and manipulation of prices going on.

Yes it can.

The problem is that in today's world, the pension fund will get drained sooner than expected. And that is my concern because it looks like it is in my genes to live longer.

You could still get a much better return doing a 60/40 bond stock split in index funds. You also have to deal with the erosion of purchasing power if your pension doesn't increase with inflation. If my pension was $1000/month at 62, by the time I'm 100 it will be worth about $300/month.

@NurturingTalents My company calls that plan a pension (but I guess that doesn't necessarily make it one, so I dunno!).

And IF everyone in your family......

@@ebenezer659 That will buy diapers which is all you will need at 100

thats government. give them $1.00 and only see $0.50 if you are lucky.

You are one hundred percent right.

I can think of one good reason. the companies pension system crashes in which case you get nothing. take the money while you can

I agree with you. My lump sum benefit next year when I retire is $174k, my monthly benefit option is $1,014 per month or $12k per year. I’d have to earn 7% on my lump sum to equal my monthly benefit. Tough to guarantee year in and year out 7% return.

Exactly, I work for the government, and upon retiring, my pension will take 12yrs before it reaches its lump sum value, then it's for life

@@mikeg9149 you'd get 10-12% on average over 8/10 years. The market has to be looked "at least" a 5 year period not 2 or 3

If it's making 15%, how does it run out? If you draw more than the returns, then you will eat into the principle.

Speaking of tricky. Here in Massachusetts if I do 20 years and retire early I get 8.1% of salary. So it’s a no brainer to take a direct rollover

@JenniferTubbs-sp8ce That sounds great and what signal do you invest with?

@JenniferTubbs-sp8ce That's awesome and please how do I connect with this broker lady?

@JenniferTubbs-sp8ce I'm currently on her webpage now, her reviews are very impressive and I left a message for her. thanks, a lot.

Yes I inherited my father's, he put me as a beneficiary.

How many days did thay give you to do the paper work to get it back whit them

What was your work before you retired, mam?

Closer to 7-8 % for a global balanced etf Even less if in mutual funds because of fees

16.7% year to date...Just sayin.

@@HamiltonRb Dave invests in high performing mutual funds, based on past performance. I am not sure he ever talks about how load fees or service charges eat into those returns. He believes everyone should be getting at 12% return even in recession or for those with a low risk tolerance. His advice on the topic is typically contradictory to those who preach low fee index fund investing.

Thomas Reedy High performance is code words for high risk / high reward which entails and is not the best option for people entering retirement. There are going to be great years and some really bad years, and many retirees will panic and sell during those down years. He should be mindful of that when telling people what to invest in

@@ajurgens1984 Some of mine are up 25% year to date but if you include the 2018 dip, it is far below that. So ups are relative to downs and it averages out to a lower number in the long run. It all comes down to volatility.

Yes but you typically have to make the choice when you retire. So if someone's parents chose the monthly payment option, you aren't typically allowed to go back after you retire to change that.

Paul Sin what if her pension was valued at 390k and she got 50k the first year and died Jan 2? Money, gone.......

@@insideoutsideupsidedown2218 she could have bought term insurance for 1k a year guarenteeing the 390k. #1 issue in retirement is running out of money.

@@mistersinnister1 Great Advice. My co-worker retired from the State of Texas (making $120k per year) and his Retirement income was very good but he explained to me that he wished that he would have purchased a Term Insurance policy rather than taking less pension so that in the event that he died, the remaining amount would go to his spouse. He said the deduction was expensive and a Term Policy for the same amount would have saved him several hundred dollars per month My wife and I are both State of Texas employees (she is currently eligible to retire and is only 52 and I have less than 3.5 years but will be 57 when eligible). Thanks for sharing.

@Sponge Bob I have no idea what you are talking about. But I can promise you that providing blanketed financial advice to everyone is ignorant and irresponsible.

Yep, I don't think he knows much about pensions. My balance is $145k, in less than 3 years I can get $38k/yr for the rest of my life. After 4 years it beats the lump sum.

Yes, it can go to your heirs, but you have to choose that option when you retire and it typically will reduce your monthly benefit by quite a bit.

It's a simple math problem do the math and you will probably be kicking your self in 30 years

@@TheDjcarter1966 I know it's late. But what do you mean? I had the same thing were my old employer offered me a lump sum, it was 5$ a month or 1400 lump and I didn't even respond so I could keep it but I'm not sure how to even check it or anything tbh.

@@TheDjcarter1966 That is THE risk. Do you think you can live for the amount of years it would take to move past the lump sum ? It didn't make sense for me to take the lump sum. In less than 20 years it would surpass the lump sum. If your in good health the odds are with you to surpass lump sum significantly.

Yeah i asked and he didnt answer that.

It’s not an option in VA.

I would invest it with Vanguard in an index fund that mirrors the S and P 500

WHEN I MET *HACKERLARRSON001 ON NICEGRAM*MY LIFE CHANGES TO BETTER LIFE CAN’T IMAGINE LIFE WITHOUT HIM THEY’ER THE GREATEST ON PLANET!!!

What is your occupation?

@@thinkforyourself9334 I'm a software developer for a bank.

@@daves.software WHEN I MET *HACKERLARRSON001 ON NICEGRAM*MY LIFE CHANGES TO BETTER LIFE CAN’T IMAGINE LIFE WITHOUT HIM THEY’ER THE GREATEST ON PLANET !!!

I do tax lien certificates in mine, no real estate.. I get on an average 15% never lost money picked up a few lots sold them and re invest in more certificates and discounted notes

Yeah I mean the pension is really there for the two-person retirement. I know some pensions transfer over to to your heirs but this one probably doesn't. 147 k is pretty much nothing I hope they have other savings / investments

It will matter if you have(and like your) kids.

@@steve8803 the caller is 62. Those kids are adults.

@@webfreakz Doesn't matter, still my children. After working most of my life, I don't want my unused pension to die with me if I die early. I want it to go to my kids, regardless of their age.

There are plans that allow you to take a set range of the lump sum amount ($10-$50k), and the individual will still receive a monthly joint annuity payment for the primary and spouse at a bit lower rate. This will allow some to play it on both sides of the fence. Have that lump sum directly rolled over to a traditional ira and receive a monthly annuity.

Many pensions in private industry don't work that way. You are lucky your husband worked for NYS. Many of us who live in NYS and pay the sky high taxes without benefit of working for NYS will have a very different experience...

I'm in a mutual fund with quite a bit of tech and I'm at 18% ytd

Must be the worst fund ever, or whoever put you in it took off with the money. The Nasdaq (heavy tech focus) is up 35% this year, all time high today...

​@Sponge Bob Yes, dave ramsey did. Listen to his courses and youtube content. He claims that "growth stock mutual funds" will yield an average of 12% per year, he has always used this figure and never deviated. He uses it for calculations for callers and has argued about it on his radio show. This is obviously false for long term investing, there are zero public funds which have yielded 12% or higher over a 30-40 year period even though he claims that they exist.

​@Sponge Bob he has strongly led people to beleive that 12% is a likely long term return on random mutual funds though which is of course not true.

don't you pay tax on the annuity payment? what about inflation? your assuming you wont live to 90.

@Josh. Once the lump sum gets to your bank account, yes, payments are taxed by the IRS as standard income, but you can reduce your exposure to this by rolling your lump sum pension into an IRA. Unless you have a Federal Government pension, taking the monthly payments though the pension plan is too risky

@@augustuscaesar9995 my father works for municipal. There pensions are governed by state law. For him at 67, pension is more safer because he doesnt need the 10-12% return when 6-7% is enough to cover inflation. I dont think everyone should take lump sum. Only lumpsum if pensions are not gaurantee by law

Only a spouse...majority, if any, allow you to continue benefits to anyone else. With that said, once your spouse passes, there is nothing additional coming for children or other relatives.

@@joemcmahon8103 Some pensions allow you to lower your payments but in turn guarantee payments at a reduced rate for your children. Like you lower your payment by $100 but they get $200 for the rest of their life once you pass.

@@thursdaythought7201 Spouse only. Never children.

@@williams7368 no, some do have child benefits... look it up.

@@williams7368 False.

Not necessarily true! You have to take into account the monthly benefit, any guaranteed annual increases in the benefit, any surviving spouse benefits, etc.

If I take the lump sum I don’t get the health insurance that comes with it.

@@stevenmorris2293 - OK, again "nearly" every scenario. The health insurance issue is a good thing to weigh on pensions, because health insurance becomes VERY expensive as we get older. I guess my comment was more a general thing on the difference between the cash itself being offered vs payments....you're nearly always better off on the pure value of the cash due. Ever win a lotto, better off taking the lump sum etc. Even in Vegas if you win over a specified amount they will pay you in payments because the casino knows the value of spreading it out. With the lump sum properly invested it will be worth much more than the payments. Also, payments spread out in the future are devalued because of inflation.

No because then you go in a higher tax bracket

Tax bracket won’t change if you put it in a traditional IRA

If it is paid to you it is. If you roll it over it isn't until you draw funds out..at least that is how I understand it..

No tax if you roll it into another 401k or traditional IRA. Taxed when its finally withdrawn.

The lump-sum check can be written to your IRA / 401 provider and not taxed until you start to withdraw on it.

Hindsight is 2020(the year everything changed in economics and finance)

If you have to ask, then you need a professional.

look up Sandra Gail Gaines

@@d.a3474 she's the best. She handles my portfolio worth $245k in stock properly

I agree with the need for more facts. With my state pension, If i were to withdraw the lump sum at retirement, I'd only get my contributions plus compounding at 4%. If I instead held onto the pension, I'd get my contributions plus well over a 100% match from the state (many years it's a 200%+ match), plus any market compounding, for the entire time I've been contributing, plus yearly/bi yearly COA adjustments throughout my retirement. Taking the lump sum would be a enormous loss in my case. All pensions are different.

More facts. I took the monthly payments until death. I'm 10 yrs in now almost got all my lump sum I would have gotten back already. Plus it's (Defined Benifit) guaranteed by PBGC And had if I had a wife or dependent child they could have drawn 1/2 after my demise. Most lump stumps are spent and gone within just a few years. You always think you need and deserve something then your left with 0. I like the monthly checks

Like Scott said, Pensions are all different. Some pensions offer a lump sum which then reduces the monthly payments. So she could be getting both...140k lump sum to invest then reduced monthly payments for the rest of her HUSBANDS life. She is already planning how to spend HIS pensions monthly payments I'm sure. haha

I think Dave is wrong he’s probably using his 10-12% return which doesn’t consistently exist.

All depends how long you live and what we are discussing. If we say 20 years at 6-7% a year on 150k it is approx $875 month in monthly payment received. If we use Dave’s 12% it increase to roughly $1500 a month over 20 years

I think because his main point was taking the lump sum moves the money to your control, leaving it could means your loose the money upon death. You can also grow the rolled-over ira and you can’t really grow the pension. I think those were the bigger points.

How many times have we lost money on 401 k and IRA. Many people could lose the money and have nothing. Or cash it out with a 30% penalty. Further putting ya against the 8 ball in later life.

It's insured to have you something no matter, what.

Your confusing two different things. This is not a systematic risk issue this is a behavioral issue. Everybody is different. Just because you would pull money wary to incur a penalty doesn’t mean everybody else is a short term thinker

He didn’t ask because he doesn’t really care. His real goal is to steer the poor saps who call into his show toward his farm team of investment charlatans who will bleed them dry with fees. Dave must get huge kickbacks from that.

Don't forget he tends to forget people have to pay taxes on their paycheck.

That’s because you don’t know how to pick separate mutual funds in your retirement account. Hop on there, look at the individual fund rate of return over 10 years then pick the best 👍 no one at my work understands how to do this or how to set up their 403b. I’ve been teaching them how to do this and then letting them make the decisions

@@Nursemidratz First rule of finance: past performance does not indicate future success

It's probably a 10 - 30 year return, not 1-2 years.

Just a thought. If you take all your personal and vacation time all at once,now. Could you try the new job and bcommute(train home at midnight?)to see if it works? Then you could compare the two jobs with more information.

JUST ME I messed up the hours are 330pm to midnight yes I did a run before at home wasn’t fun but getting there a piece of cake I walked around looking for spots very hard and parking in a lot will be another bill I don’t want

If your choices are a commute of 10 mins vs. 40-50 mins, I’d pick the 10 min commute. Unless you can move closer to the other job. Google articles on mental health and long commutes. Those long commutes will negatively affect your health (mental health, blood pressure, stress levels) and it’s not always worth the additional pay.

You have to decide what your time is worth and what those odd hours are worth to you....then figure up the difference in pay...the likelyhood of promotion.... benefits etc etc....as long as you have a long term goal in mind and the extra pay is going for something long lasting and doesn't disappear!!! Sure go for. If you hate commutes.....that might be worth a lot to you ...I dont blame you. There are other aspects.. but one thing I forgot... total hrs working includes the commutes....also if you work weekends now and wont with the hospital what is that worth to you?? There is a way to break it down.... do the ben franklin test!! Good luck!! Let us know what your leaning towards!👍

I usually choose lower pay closer to home, especially in winter months, than higher pay further from home, but that's Just Me.

I think in this case he mentioned the disadvantage being that pension dies with you. Rolling gives opportunity to inherit to heirs.

You need to watch more of his videos.

And if you have other accounts to draw from, it provides peace of mind to know you’ll be getting a monthly check. It’ll help take the pressure off your other accounts and reduce risk.