Hearted Youtube comments on Vincent Chan (@VincentChan) channel.
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When I was a kid, I remember I would go on road trips with my dad, and whenever we'd visit a location, if I wanted a souvenir that was just a cheap trinket, my dad would just say "no". Never understood it because they were super cheap and we were never poor. But now, I kinda do. Instead of buying that cheap thing I would forget about in a month, he would pay for us to go experience new things, and now that I'm an adult, I'm so thankful for it because first, I still remember every single one of these experiences, but I'm even more thankful that he's taught me to not waste my money on these little useless things and to instead save it and buy a course, or an experience that will bring me much more value in the long run.
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I was taught about personal finances in school. We covered savings, how to invest in shares, how investing in property worked. Most importantly we learned about how inflation worked and how important it was to invest your money so that it didn't lose value overall. sticking dollars in a sock under the bed was actually a way to lose money, not save it. I went to school in Australia, but the class I took (I was in year 9, age 15) was optional. Only about 1/5 of my year level took the class. I 100% credit this class with setting me up in life. I would NEVER have invested my money at all had it not been for this class (nor would my husband, he only did it because I took over the household finances and started investing). We are now decently well off, living in comfortably in Silicon Valley, one of the most expensive places on earth (one of). To be honest, I would live somewhere cheaper lol, but we would not have even had the choice of living here had it not been for the financial savvy I learned in school as a 15 year old (and significantly built upon as an adult because I had learned the value of financial knowledge). My toddler son, when he grows up, will most likely have to learn from his parents but at least now I can be confident that I have something of value to teach him.
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Great video and explained well. One thing you did not go over is qualified dividends. Qualified dividends are tax advantaged the same way as LTCGs (long term capital gains), and they use the same federal tax brackets of 0%, 15% and 20%.
In my taxable account(s), I only buy qualified dividend stocks. I avoid non-qualified dividend stocks in my taxable accounts because those type of dividends (non-qualified) are taxed as ordinary income. Non-qualified dividends are usually paid by REITs, BDCs, and MLPs/LPs, so I avoid those in my taxable account. Qualified dividends like LTCGs are tax advantaged (taxed less than non-qualified dividends). It can make a significant difference in your federal income tax liability. If you are in a low enough tax bracket, there will be NO federal tax liability (just like LTCGs). For instance, a couple (married filing jointly) can make up to $123,250 in qualified dividends in 2024, and not pay any federal income tax. The LTCG (long term capital gains) and qualified dividend federal tax table shows that the tax bracket from $0 to $94,050 rate is ZERO for tax year 2024. So, if a couple made a total of $123,250 in qualified dividends (or LTCG), and had no other income, they would deduct their standard deduction for a MFJ couple of $29,200 to stay within the zero rate tax bracket ($123,250 - $29,200 = $94,050), and thus, have NO federal tax liability. If the couple had all ordinary income (non-qualified dividends or any regular income) of $123,250, their federal tax liability would be $10,822. That is a HUGE difference ($0 vs $10,822). This would be an extreme case and most people will have multiple forms of income from like a job, interest, pension, etc., which will create some federal tax liability. However, even if a portion of the $123,250 is qualified dividends, that will still save you money in taxes.
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Vincent, there are SO many great lessons in this vid. You did a fantastic job. There are three key things that people who watch this vid need to take away from it though. 1. DON’T just quit your job unless you have something else lined up and/or able to afford to struggle. (In my world, there is no failure. You never fail, you learn from your struggles.). 2. I LOVE your quote of, “If you don’t build your dreams, someone else will hire you to build theirs.” I am not sure if that is your quote or someone else said it, but either way, it is SO true!! 3. I also love your quote of, “If you don’t have a purpose in life, you will be a part of someone else’s purpose.” Again, if your direct quote, well said. I do think we have to be careful that we don’t give the impression that you should be a single island doing your own thing. In fact we should be an individual tooth on the cog of life that first ensures your purpose brings meaning and value to the overall cog in order for the cog to work effectively. Without all the individual teeth on that cog, the cog will not work efficiently. You can still be and do your own thing, but you still need others to remain purposeful. Love the vid! GREAT message.
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Thank you for explaining. I was 40 before I started realizing that my purpose is, what my value is, what brings me JOY and happiness.
All these words were a puzzle to me in the beginning, but digging deeper, answering questions, journaling a LOT (and I hate journals)
I then started seeing a partern of what I really liked:
What I really value is FREEDOM,
Freedom to do what I want, when and where I want.
Being independent.
Therefore, I knew I hated working for a boss and needed my own thing!
I knew then that I needed to earn money online because I wanted to travel full-time.
At 40, non-technical, I had no idea where to begin, but I made it and I quit corporate.
NOT overnight though,
I made a plan and follwed steps so I would never be without money.
Never ever take the leap of faith guys!
I talk about this a lot since YT is one of my ways of sharing what I've learned as well.
Take time to find your purpose and then go get it.
Life is too short!
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All this is well and good, Millennials are struggling financially, I agree, and you compare them to baby boomers, which is the obvious generation to make comparisons to, but you don´t mention the fact that the younger generation get a lot of financial help from their parents, and even grandparents, and I think this money should be included when summing up income of said generation.
When I was young, if I wanted to buy a VHS or DVD, my parents said ¨get a job¨, or ¨use your birthday money¨, and the younger generation (and I am speaking in general, from my experience living in Europe), as you say, are getting financially destroyed, but now they have nice clothes, Iphones, nice cars, go travelling, eat out etc. Something that was unthinkable when I was their age.
Just a thought.
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Fantastic video Vincent!!!
I have been in a position for the last 3 to 4 years in which I have been expected to take the next job, being promoted, and continue climbing the ladder, but at the moment, my current role allows me to have a fantastic work/family life balance that I know I will lose if I take the next step (or at least to a certain degree).
Currently, I have a toddler, 1.8 y/old and we have sufficient food on the table and a small apartment, I have spent sleepless nights trying to convince myself that I need to take the other role because "that is what is expected of me", or "that is the status that I deserve" for having worked hard at uni, but, until now, I have said no 3 times already and carried out enjoying my family with my decent salary. I do not regret a single bit!
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I didn't open 457B & 401k's plans, until I was in my 40's & now regret doing it, in my 70's! Now that I & my wife
both get pensions & Soc. Security, we now have to pay tax on the RMD's, i.e. required minimum distributions, at
a much higher rate on that money, than had we paid the tax when I earned it ,30 yrs. ago!. To solve this problem,
the IRS should tax RMD's (separately), at a fixed rate, like dividends & then added to your current income! Be fair!
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I mean... I'm not going to say you are wrong, because that is the plan... but I think China's ability to pull off their plan is just not going to happen. It is an issue of over-reach.
The US gained power by a great many things. Having a large military is absolutely one of them. Great timing (and physical isolation) in dealing with WWI and WWII helped a lot. Becoming the world's gold reserve, and reserve currency, and enforcing the entire world economy to trade petrolium products in USD is yet another. But those are what got us to grow; What keeps us in power is good contracts, good laws and rules, and not thinking or pretending that we are better than our own rules (*with perhaps a few exceptions).
This is where China has some... headwinds. The culture of China is to only follow the rules when you are being watched, and hope really hard that nobody watches you in particular very closely... or to have enough clout and power to ensure that eyes do not watch you very closely. And that is a problem. That is how you end up with a rail system that looses all of the money. That is how you write contracts to build major airports or infrastrcture projects in 3rd world countries, and then when they default on the loan you get the infrastructure... but because it is in a 3rd world country it becomes a lost asset which will never pay for itself. On the one hand there is so much unbridled corruption and shortcuts going on that things are unsustainable. On the other hand there has been so much overreach that the only customers they have are those with very little to loose. And these poor dealings make it so thatt larger countries do not want to deal with China in this way, and they are happy to spend a little more money getting funding from other more expensive sources.
And don't get me wrong; I actually like China a lot! No other country in the world has made such great strides to bring more people out of poverty in the world... and Ive got a ton of respect for that. But on the other hand, when other countries can't trust your tech because it is bugged (or can easily become bugged), and they can't trust your advanced manufacturing because you will copy it, and they can't trust your contracts because you will break it with no consequence while putting on higher than stated consequences to the other party when they step out of line... nobody wants to do anything outside of the scope of basic stuff with you. Unless China cleans up their act, they just aren't going to become the next USA, or if they do then it won't last very long.
Lastly are China's allies... and I get that political allies are... well... political. But the relationship between Russia and China is not the same as say the USA and England or Germany. Without strong allies, there is little way to gain traction or keep ground.
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This is an excellent video. However, being a person of Faith, I would have to add an additional bucket for church offerings. For myself, between the ages of 25-years old to 45-years old my monthly targets were as follows: 5 percent for church, 10 percent into a short term savings account, 10 percent for transportation costs (auto loan, gas, maintenance, etc.),15 percent in a retirement account (invested in the stock market), 50 percent for housing, utilities, and food, and the last 10 percent was for misc items throughout the month which, would always come up (smile...smile).
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For the people trying to 'debunk' this video by saying things like 'its a shame he waited so long he never got to spend that money.'
First of all, this clearly means one of two things: 1. You didn't listen to the video OR 2. You misunderstood the video.
Second of all, Ronald was working a minimum wage or at least near minimum wage job. I know many others are in this very position today, but chances are, you are above minimum wage by at least a few dollars and maybe for some making WELL above it.
Third of all, plans like this is plan to your 60s. Ronald was 92 when he died. '60' isn't necessarily 'old.' Many at this age are still perfectly active and hold down full time labor jobs. Besides, the 'death' argument could be made at any age since you could die just by tripping and landing wrong.
(Not to mention different plans can yield different results. Depending on your plan and how much you're making, you can legitimately reach these goals at ages like 40 just by starting at 20. This isn't some kind of contract that you are spending. This is a plan that YOU need to do the math on.)
Fourth of all, and really this SHOULD be common sense... You could... You know... NOT WAIT SO LONG TO SPEND THE MONEY! Rome wasn't built in a day, and acquiring wealth will take years, but you don't need to wait until it's too late to retire and begin using your wealth. Just be mindful of your limit and you'll be fine.
Most of us aren't looking to become the next Tesla. Sure you can point the finger at boomers and complain how they ruined the economy and how it was easier back then. Regardless of if it was, a comfortable life IS within your grasp. The main question is: "What does a comfortable life mean FOR YOU?"
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All the best to you, my brave warrior! $120k today in Manhattan is poverty line. I was making $350k plus and bonus and lived across the river in Hoboken NJ with roommates to save. Non stop work, slave to the corp, slave to your team, slave to your department, slave to your boss. Quit after 3 years and left US. Set up a new biz nomad style in Vietnam and now employ 23 people. I am making the same and in Vietnam I live like a king. Real baller lifestyle in Saigon. Taxes reduced by 20% too. So savings are way more. My fellow colleagues in NYC are still grinding, all look older, balding, fat, divorced from ugly fat wives, depressed, just one look and you will feel their souls have been sucked out dry. Only 1 of them is now a partner and he makes 7 figures but 50% goes in taxes.
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@VincentChan you won't believe it, but the meaning and (non)sense of working for a career and for an employer is exactly the topic that I'm troubling my thoughts with today. I mean, since years, but today in particular. So yes, your video gave me a lot of inspiration on the importance of working on side hustles or trying to start a company instead of sticking to a normal job.
By the way, i'm an engineer, one of the 4 occupations you mentioned :)
I'm still on my job and i'm literally QUITE QUITTING since years, but I also started a youtube channel and you are one of my biggest inspirations to start it.
Just today, in a couple of hours from now, a video of mine is coming out where I reflect on the importance of purpose for happiness and how a normal job doesn't make happy.
I'd be really honored if you'd give it a look, it's coming out in 2 and a half hours and only lasts 6 min ☺️
I'd love it if you could give me a feedback for it 😊😊
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I liked the video, but it focuses only on the break the bubble aspect. What I would like to know is how you pay your bills, rent after quitting the job? I think this is what it all comes down to. I'm guessing you saved money for a couple years and have savings, but are you now not working and paying 2k rent in NYC, or did you move somewhere cheaper? Do you have a non-tech part-time job now just to pay your bills? This is the kinda information I'd like to know and think would be valuable. Because let's face it, even if I don't care about materializm and expensive cars, I still need to rent at least a room and pay for food, which if you live in the USA is over 1k a month, that if I don't count transportation and other necessary expenses. So unless you moved in with your parents and stay rent-free I don't see this transformation happening for most people no matter how motivated they are. Also in the USA, I find that its hard to find a part-time job in tech - either you work part-time in the grocery store but then it's like 500$ in 2 weeks which is not enough for rent and food, or you work full time for a tech company and have no free time.
If anyone else here knows the answer or has any tips please feel free to comment! :)
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Don't beat yourself up too bad, kiddo. It's a process, I don't think it means you should've kept a job, if it's toxic or causing you to lose sleep or sanity. There's no job on the planet that is worth that kind of lost, unless you are making an absurd amount of money to retire off of and leave well, perhaps what that will put you in some kind of historical book or notoriety. Even in those contexts, it's not worth it, but is somewhat warranted. The other jobs are purely out of survival unless you are really married to your profession, like a doctor, teacher, or scientist. But, the average job and positions are treated as disposable by nearly everyone, especially by their own company and industry. Most workers bring more value to a company than what they are being compensated, yet many companies expect more with zero to marginal investment from year-to-year.
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