Keith Kail

Certified Financial Education Instructor, Macro Enthusiast

[Keith Kail @KeithKail]

Financial Excellence:

“Being financially excellent means making financial decisions in alignment with your values. It’s not about how much money but the quality of the decisions you make with the money that’s already in your life.” - Keith Kail

[Keith Kail @KeithKail]

@PeterSchiff So true. I’ve worked with over 2000 individuals and families over a 28 year career and the finance bros on social media give trash advice most of the time.

[Keith Kail @KeithKail]

@realMaalouf @marklevinshow Some don’t hide the truth of the plan.

[Keith Kail @KeithKail]

@baumusc @dividendology

[Keith Kail @KeithKail]

@JonoG349979 @RoaringHammy You can achieve this but with lifetime guarantees with annuities. Mortality credits are the secret sauce. This frees up more capital for other reasons. Read EY white paper on this subject.

[Keith Kail @KeithKail]

@jamie_selects Ask some 80 year olds

[Keith Kail @KeithKail]

@mrmikeMTL 29

[Keith Kail @KeithKail]

@BEisenhart @BarbellFi Incomes are almost double for professional now than they were 10 years ago. He likely wasn’t earning this much money for very long.

[Keith Kail @KeithKail]

@RealWayneDupree Whisky and Pills by Billy Idol.

[Keith Kail @KeithKail]

@WSJ The cash flow pattern of middle class America:

Income
⬇️
Lifestyle
⬇️
Liabilities
⬇️
Protection
⬇️
Assets

The cash flow pattern they should have:

Income
⬇️
Protection
⬇️
Assets
⬇️
Liabilities
⬇️
Lifestyle

[Keith Kail @KeithKail]

Key key to confidence as a middle class person is financial balance.

- Earn your money
- Be properly protected
- Save 15-20% or more of gross income
- Have sufficient short term liquidity (aka emergency fund)
- Have no bad debt
- Keep housing costs in check (less than 25% of gross income)
- And THEN - LIVE ON WHAT IS LEFT.

that’s how you have financial balance. Balance between living for today and building your tomorrows.

[Keith Kail @KeithKail]

@LynAldenContact It made no sense to me after a few episodes. It had a great idea then got weird. Then I heard the writers were just literally making up the story before each episode … I’d like to think there was a story that was overarching.

[Keith Kail @KeithKail]

Automating is key. This is achieve with payroll deduction from earnings to a 401k.

It can also be achieved by utilizing a wealth control account to capture all income and “pay yourself” your monthly lifestyle spending amount. The excess is automatically captured and can redeployed to wealth building opportunities, building liquidity, liquidating bad debt or intentionally spending on discretionary things.

The key is automation and intentionality.

[Keith Kail @KeithKail]

Never Gamble Your Retirement.

The goal isn’t to maximize rates of return all the time. You can’t control the factors involved in that process.

The goal is to provide sufficient retirement income to live the lifestyle you are accustomed and to have that income last as long as you do while leaving a legacy of your choosing to your survivors.

Rate of return vs optimal retirement income - These are two totally different conversations.

[Keith Kail @KeithKail]

@VigilantFox To communists 100% tax on wealth is the right number.

[Keith Kail @KeithKail]

@CoachRolfes Financial balance is the perfect mean between living for today while building your tomorrows. Between life and legacy. Seek balance.

[Keith Kail @KeithKail]

They were real more brocade the retirees / preretirees had to make decisions about income; many found the solution to work longer. Some could not and had to liquidate in a reverse DCA fashion to generate needed income. This sequence of return risk is a real risk.

So for many retirees, waiting out the volatility over 10 years wasn’t a solution. They called it the “lost decade” for a reason.

So it was real in a sense of peace of mind and current income needs.

Conventional wisdom said “buy s&P 500 - it averages 10%. Sounds good until reality hits you square in the face.

[Keith Kail @KeithKail]

Where do you get your financial information from?

- from social media influencers who are paid to be outrageous?

- from financial “entertainment” shows?

- from the coffee shop bros?

There’s lots of financial information but then there is financial knowledge.

Some information is right, some is wrong, some is right or wrong just for you.

Financial knowledge is CORRECT BELIEF about how money really works in your life. How can you tell the difference?

Knowledge is based in math and science.

So when choosing your source… choose academia over Wallstreet media, over the finance bros on X, over tik tok!

That is wisdom. And wisdom is also the ability to apply financial knowledge in your everyday life.

[Keith Kail @KeithKail]

If you are within 5 years of retiring or in retirement you had better take a good hard look at your investments and cash flow structure.

My strategies include - never take current systematic income from a variable asset. These assets are for growth to outpace inflation (income needed in 10 years +).

Keep sufficient true liquidity, build a guaranteed income stream to pay basic living expenses (social security, pensions and guaranteed lifetime income annuities), and have a plan for long term care. Then invest the rest for growth so that you can peel off more guaranteed lifetime income when you need it (for inflation).

Then enjoy retirement and think not on market volatility.

[Keith Kail @KeithKail]

@myersbradley @FreeAdviceGuy These losses were “real” for a lot of people.

Memes like:

The “Walmart greeter” was born during the lost decade.

And “401k became a 201k”

And on and on.

[Keith Kail @KeithKail]

@WallStreetApes Earn

Protect

Save (15-20%)

Avoid bad debt

Keep housing cost in check (15-25% of gross income)

Spend (what’s left on lifestyle)