Early Retirement Expert: A House Vs Stocks... (Here Is The Truth) – Transcript

00:00If you don't get in the game of home ownership, and you rent in your 20s, and you rent in your 30s, you're going to turn around in your 40s and having not built any net worth. And in fact, homeowners in America are worth 40 times more than renters. And I'm talking about ordinary Americans.

00:17>> But that doesn't mean that buying a home made them rich, right? >> It actually does, and I'm going to go through that. >> But am I not better off renting and investing in the stock market? >> I want to bust this myth cuz I have spent the last 33 years of my life helping millions of people with ordinary incomes become financially free.

00:34Including 9 years as a financial advisor at Morgan Stanley, and I got to see firsthand how everyone who came into my office with an ordinary income built wealth. And there's a formula to getting rich, but there's also a system to how you put your financial life on autopilot in less than 10 minutes. And it doesn't require discipline, budget, and you don't have to make a lot of money to get started. But unless your financial plan is automatic, it will fail. But more importantly, I believe the next 10 years will be the greatest opportunity to

01:01build wealth in our lifetime. And yet, seven out of 10 people right now are living paycheck to paycheck. More than 50% of Americans don't have savings, and most people don't know where their money goes. And in fact, when we ask people how much money would it take to totally change your life, they say $10,000. Now, how much money do you need to spend a day to blow $10,000 a year? $27.40 a day. If you invested that a day for 40 years, you'd have over 4,424,000 dollars. That would be life-changing.

01:29>> But just before we get into all of the specifics and the strategies, do you have any specific advice to people that are currently struggling with debt? >> Absolutely. There's a very simple formula to getting out of debt called Debt Avalanche. I'd tell you to >> Listen, my my team gave me a script that they asked me to read, but I'm just going to ask you, um, in the nicest way I possibly can.

01:48Thank you first and foremost for choosing to subscribe to this channel. It is, um, it's been one of the most incredible, crazy years of my life. I never could have imagined. I had so many dreams in my life, but this was not one of them. And the very fact that these conversations have resonated with you and you've given me so much feedback is something I will always be appreciative of. And I will always carry away a sort of burden of responsibility to pay you back. And the favor I would like to ask from you today is to subscribe to the channel. If you would be so obliged, it's completely free to do that. Roughly about 47% of

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02:37Thank you. >> >> David, what has your mission been for the last three decades?

02:50>> I have spent the last 30 years of my life helping ordinary people, people with ordinary incomes, become financially free. And the last 20 years I've spent helping people become automatic millionaires.

03:04So, I love to teach anyone at any income level, minimum wage, living paycheck to paycheck, you might be in debt, you might be struggling. I've taught millions of people how they can improve their life financially.

03:17That's what I've been dedicated to. And I've spent 33 years total in the financial service industry. >> And is this conversation just for people that are in their 20s or is it applicable to everybody at every age? >> It's applicable to everybody at every age because whatever your age is, you know, it's look, Stephen, so many people are living paycheck to paycheck right now.

03:35In this country, what's happening right now is that seven out of 10 people are being left behind financially. Seven out of 10 people right now are living paycheck to paycheck. When you go into looking at finances in America today, half of Americans can't get their hands on a thousand dollars in case of emergency purposes.

03:54And my biggest fear, why I updated this book, and why I decided to come back out one more time and do another financial literacy campaign, is I'm afraid people are being left behind. I think with AR right now, the next 10 years are going to be the greatest opportunity to build wealth in our lifetime.

04:12That's the good news. The bad news is a lot of people are being left behind. My goal today next hour is very simple. I want to give you the system on how to become an automatic millionaire at any age level, at any income level. But what I'm going to teach you is how to put your financial life on autopilot in less than 10 minutes.

04:30Because when your financial life is automatic, your habits work automatically. And an automatic financial life doesn't require discipline, doesn't require a budget, and you don't have to make a lot of money to get started.

04:47>> Why should people be taking advice from you on this subject matter? What's what have you done in those 33 years? >> I've been doing this my entire life, right? So if you go all the way back, I started investing at the age of seven. And how that happened is I had a grandmother, amazing grandmother, her name is Grandma Rose.

05:04At 30, she made a decision that changed the whole destiny of our family. And the decision she made was she won't be poor anymore. And at 30 on a very cold day, on her birthday, she turned to my grandfather and she said, "We don't have any money. We're living paycheck to paycheck, and I don't want to retire here. I want to go to California. I want to be where it's warm."

05:24And my grandfather said, "Well, what do you want to do about it?" And she's like, "We need to change what we're doing or nothing will change." And so my grandmother started to saving 50 cents a week out of her paycheck. So 50 cents each, cuz they were like middle class people, right? Didn't have a college education. My grandfather worked in a plant. My grandmother worked in retail.

05:46But she started to saving small amounts of money. And over her lifetime, she became an investor and she became a self-made millionaire. My first book, which you have sitting over here, was a book called Smart Women Finish Rich. It was the lessons that my grandmother taught me.

06:00So, at 7, my grandmother took me to McDonald's and she taught me a lesson that would change my life. She said, "David, you're sitting here eating McDonald's and cheeseburgers and your french fries and your milkshake." She said, "I'm going to teach you today how to be rich for real. You like to play Monopoly?

06:16Here's my lesson today." She said, "There's three types of people. Those like you who are here eating right now, you're what's called a consumer. She said, "The people over there who have been working, they're called employees. And they've been working for minimum wage.

06:32And that's a very hard way to live." She said, "They make eight At the time, they made 85 cents an hour. And she said, "The third type of person is the person who owns this place. They're called an investor." And she said, "Today, I'm going to teach you how to buy stock in McDonald's. So, that when you come to McDonald's, you'll make money from everybody who's here.

06:50When your friends come to McDonald's, you'll make money from them. And you'll be an owner of McDonald's." And she took me down to a brokerage firm, helped me buy my first share of stock in McDonald's. That moment changed my life because what she made me realize is like everything that we do, I'm 7 years old, everything that we do, there's an opportunity to be an investor and own that. So, like at 9 years old, I'm at Disney. I'm like, "Hey, Mickey

07:16Mouse, are you public?" So, I was like a not a normal kid in that way because I started investing at a young age. But, then I made a lot of mistakes. Then I went to college. Then I got myself in credit card debt.

07:30Then I believed all the myths that young people often believe. I believed I couldn't really invest a lot until I made a lot of money. So, my early 20s, I was making money, but spending everything. So, I was went from making nothing to making $50,000 a year, and I'm still broke.

07:50I'm like, "Well, it's not enough money." So, I went to $75,000 a year. Still broke. Spending more. Then I got to $100,000 a year income. A lot of money, right? In my 20s, oh my god, I'm rich. No, I was still spending more than I was making. At that point, I was a financial advisor.

08:07And all >> your job? >> That was my job. I was working at Morgan Stanley, helping people plan for retirement, teaching retirement seminars. And I met this ordinary couple that came into my office at the age of 52, Jim and Sue McIntyre.

08:22They had an ordinary job. That year they had made a little over $53,000. Their average income over their lifetime was $40,000. And at 52, Jim put out all the statements on the table in front of me.

08:37I sat there and added them up, and they had a net worth of $1.8 million. And I sat back at a table just like this and said, "How did you do this?" And they had just been in my class for 4 weeks. Like, "David, we did a lot of what you talked about, but we didn't have a budget, cuz budgets don't work."

08:56And they talked about why budgeting didn't work for them. They said, "We put everything on autopilot. We saved money automatically for everything." And that was the moment that changed my life. I realized [snorts] that day, as somebody who was living paycheck to paycheck with a high income, these people had half the income that I did, and they were able to retire at 52.