Barbell Financial 💪🏻💰Private

Your daily dose of finance, fitness, and fatherhood. Home Gym Enthusiast | 13 Years on Wall Street
Lift Heavy 💪🏻 | Run Far 🏃 | Stack Hard 💰

[Barbell Financial 💪🏻💰 @BarbellFi]

Here is the breakdown of the $60k budget my wife and I had last year

Our household income was $400k

We saved & invested the difference💰

[Barbell Financial 💪🏻💰 @BarbellFi]

Paid $300k for my house 10 years ago

The property taxes are $10k/year

I’ve already paid $100k in taxes

Just to be able to own my home 😔

[Barbell Financial 💪🏻💰 @BarbellFi]

What’s the best financial advice you’ve ever received? 🤔

[Barbell Financial 💪🏻💰 @BarbellFi]

The 6 Levels of Income in Retirement:

Level 1 - $30k/year (27% of retirees)
Level 2 - $40k/year (18% of retirees)
Level 3 - $62k/year (16% of retirees)
Level 4 - $100k/year (17% of retirees)
Level 5 - $150k/year (13% of retirees)
Level 6 - 200k+/year (9% of retirees)

1 in 4 retirees live off social security 🫩

[Barbell Financial 💪🏻💰 @BarbellFi]

Think I’ve made a big investing mistake

And honestly feel kind of dumb for this

But I’m getting close to maxing my 401k

I just locked up my money until I’m 60

Not sure I’ll ever financially recover 🙂

[Barbell Financial 💪🏻💰 @BarbellFi]

My 67 year old uncle retired in 2017

He accumulated $1 million in his 401k

Fully invested in a S&P 500 index fund

His 401k doubled to $2 million by 2021

Now it just doubled AGAIN to $4 million

Took him 40 years of work for $1 million

And 9 years of nothing for $3 million

He’s now planning to buy a lake house

Boomer timing is something else 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

My Roth IRA is up $100k in 3 years

All completely tax free wealth

I’m 36 years old right now

Imagine 30 more years of this 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

If you make $100k/year you can retire in 10 years if you don’t have kids 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

Me trying to balance:

Social life
Gym 5x/week
Aging parents
8 hours of sleep
Raising young kids
Eating healthy food
Work with no job security
Quality time with the wife
Pay raises not pacing inflation

And not have a nervous breakdown 🫠

[Barbell Financial 💪🏻💰 @BarbellFi]

If your annual expenses are $50k

It’s better to have $5k/month for life

Than have $1 million right now

And it’s not even a close call 🙂

[Barbell Financial 💪🏻💰 @BarbellFi]

Minimum wage was $1.60/hour in 1970

Boomers could work a summer job and cover an entire year of college tuition

I have millennial friends approaching 40 and still paying their student loans 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

30 year treasury yield is now 5.3%

I can buy $1 million of these bonds

Get $53k/year and pay $0 in state tax

Every single year for 30 straight years

Then get my full $1 million back after

My annual expenses are $50k/year

Why wouldn’t I do this and retire? 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

Be Leopold Aschenbrenner

- 25 years old with autism

- convince other retards you’re the next Warren Buffett

- use 4x leverage with investor money

- take steep losses & liquidate $45 billion fund

- evaporate life savings of investors

- sell entire discounted book to Citadel while Ken Griffin laughs on his yacht

- get married next weekend

But he has a degree from Columbia…

[Barbell Financial 💪🏻💰 @BarbellFi]

My cousin is a life insurance agent

He’s 34 and makes $950k/year

Wife stays home with their 3 kids

Assets:

$1.5 million house
$4.6 million liquid invested

Liabilities:

$900k mortgage

They currently spend $250k/year

He’s very burnt out & wants to retire

Is he crazy to quit now or crazy to keep working? 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

My buddy gave 2 weeks notice today

Got a job opportunity somewhere else

Been with this company 15 years

Was a high performer & well liked

They immediately cut off his access

And escorted him out the building 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

Many folks seem to love their mortgage

Because they have a low interest rate

Let’s see how much you love it when:

Recession hits
You lose your job
Portfolio is down 40%
And the mortgage is due

1 in 54 homes foreclosed in 2008 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

Me: “how much debt do you have?”

Buddy: “zero except my mortgage”

Me: “what’s your mortgage balance?”

Buddy: “$480k”

Me: “so you’re $480k in debt” 😂

[Barbell Financial 💪🏻💰 @BarbellFi]

Having “enough” is all a mirage

The closer I get the further it all seems

I used to dream of having $1 million

But then I got married & bought a house

So then I dreamed of having $2 million

But then my wife and I had a baby

My dreams were achieved at 35

I promise it will never be “enough” 😳

[Barbell Financial 💪🏻💰 @BarbellFi]

40% income tax on everything I earn

6.625% sales tax on everything I buy

4% inflation tax on everything I save

$10k/year tax on property I own

I’m tired boss 😔

[Barbell Financial 💪🏻💰 @BarbellFi]

30 year treasury yield is now 5.2%

You can buy $1 million of these bonds

Get $52k/year and pay $0 state tax

Every single year for 30 straight years

Then get your $1 million back after

But you’re not going to do it 🙂