Latest news with #HumphreyYang
Yahoo
20-07-2025
- Business
- Yahoo
Humphrey Yang Reveals A 'Poor Financial Decision' That Can Cost You Millions
Making fewer mistakes on your financial journey can help you build wealth faster. While some mistakes are worse than others, financial guru Humphrey Yang recently revealed a 'poor financial decision' that can cost you millions. This decision often stems from fear and not wanting to take risks. While it may be scary to take a risk in the moment, these same risks can set you up for long-term wealth. Yang identifies the mistake and shares what you can do to strengthen your finances. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab $100k+ in investable assets? – no cost, no obligation. Don't Let Your Cash Sit On The Sidelines Yang mentions that letting money sit in cash is one of the worst mistakes you can make. While there are benefits to establishing a small emergency fund, being afraid to invest money can result in significant losses. Although you will retain the same paper money if you avoid stocks and real estate, your purchasing power will go down. Yang says that keeping $1 million in the bank for 30 years would have been a terrible idea. However, he also mentions that if someone invested the same $1 million into an S&P 500 fund that averaged an 8% annualized return, they would end up with more than $10 million. Yang also mentioned that if you averaged a 3.5% return during that stretch via bonds and CDs, you would have ended up with $2.8 million. The one caveat with this return is that interest income is treated as ordinary income, which results in higher taxes. On the other hand, you'll get better tax rates with long-term capital gains on an S&P 500 fund, and you only pay taxes on that fund when you sell shares. Trending: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Purchasing Power Goes Down Each Year Money loses value each year due to inflation. Yang mentioned that inflation growth has averaged 2.52% per year since 1995. It's the main reason why everything feels like it's getting more expensive. When the government prints more money, the amount of goods does not change. Therefore, you have more money chasing the same number of goods and services. Yang provides an example of buying an iPhone at an auction. If everyone suddenly had more money to bid with, the iPhone would end up selling at a higher price. This trend doesn't look like it will stop. The government currently has a large debt that regularly accrues interest. Those interest payments require more money printing, which increases inflation. Any government spending also boosts To Counter Inflation The cost of products and services will continue to go up over time as federal debt and government spending increase. However, there are ways you can counter inflation. Yang mentions taking your money and putting it into an S&P 500 fund. This general concept is the key to keeping inflation in check when it comes to your finances. Investing in stocks, real estate, and commodities can help you ride the current instead of getting left behind. These assets have fixed supplies. Printing more money will not increase the amount of gold in the world, but more dollars chasing the same amount of gold will lead to higher gold prices. That's why gold and other commodities are considered valuable inflation hedges. Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Humphrey Yang Reveals A 'Poor Financial Decision' That Can Cost You Millions originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
7 Signs You Should Retire Earlier Than You Think, According to Humphrey Yang
Financial guru and prominent YouTuber Humphrey Yang frequently dispenses sage advice on fiscal matters to his audience, and the concept of retirement is an attractive topic of discussion for Americans of any age. Read Next: Find Out: In a recent video, Yang explained that many people can actually retire 10, 15 or even 20 years earlier than they might think and discussed a list of signs that one may (and should) be able to do so. You Don't Have a Mortgage Payment Yang kicked things off by discussing the elephant in the room: the mortgage payment. 'For most people living in America, the largest single monthly expense that any family is going to have is … the mortgage payment. So, when that is fully paid off … your recurring cost to live monthly will shrink very quickly,' he said. By the time you're in your 50s, Yang continued, you want to make sure that you squash that payment by as much as possible. When it's dealt with, you'll be in a better position to consider retirement. According to Charles Schwab, paying off your mortgage ahead of retirement can make sense if you are trying to reduce expenses, want to save on interest or have a high mortgage rate. However, it may not make financial sense if you are behind on retirement savings or have high-interest debt. Learn More: You Understand Your Savings Rate vs. Your Nest Egg Being cognizant of the difference between your savings rate — the percentage you continue to set aside strictly for retirement, assuming an 8% return — and your nest egg, which is the accumulation of your retirement savings in sum, is key. By focusing more on one's savings rate — Yang pointed to the average American savings rate of 4% to 5% as being less than ideal — you ensure you are familiar with living below your means, an important mentality to adopt when considering a financially stable retirement. You Have Solid, Diversified Income Streams Yang elaborated on the centrality of holding diversified, hopefully passive, income streams to enjoying an early and sustainable retirement. 'When you've built multiple revenue sources beyond your primary biweekly paycheck, you're in a much stronger position to step away from traditional employment,' he said. A side business, dividend-producing investments and ownership of rental property were given as examples. Ramsey Solutions also highlighted a few passive income streams in a recent article, including renting out certain items, starting a blog and creating an online course. You Have 20x Your Annual Expenses Saved Up Noting that traditional advice surrounding the 4% rule (withdrawing 4% of your investments annually to pay for expenses during retirement) holds that saving 25 times your annual expenses is the target, Yang instead stated that the author of this rule had since judged it overly conservative. Instead, the YouTuber advised saving 20 times your expected annual expenses as being more prudent. Once you've done so, that's a sign you may be ready to enjoy retirement. Three Other Signs You Could Be Ready To Retire Yang also laid out three other signs you may be exhibiting already in your day-to-day life that don't have anything to do with your finances. You're in good health and have a sense of fulfillment outside of work: If both of these conditions are true, you could be ready to 'make the leap,' according to Yang. Work is increasingly stressful or unfulfilling: If you feel like your job is 'sucking the soul out of your life,' maybe it's time to head for the exit and enjoy your golden years. You've already reached all of the career goals you desired to hit: If you're just working for the paycheck and missing out on life's opportunities, it might be time to call it quits. At that time, 'retiring on top is probably a pretty good feeling,' Yang said. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 7 Signs You Should Retire Earlier Than You Think, According to Humphrey Yang
Yahoo
16-07-2025
- Business
- Yahoo
7 Signs You Should Retire Earlier Than You Think, According to Humphrey Yang
Financial guru and prominent YouTuber Humphrey Yang frequently dispenses sage advice on fiscal matters to his audience, and the concept of retirement is an attractive topic of discussion for Americans of any age. Read Next: Find Out: In a recent video, Yang explained that many people can actually retire 10, 15 or even 20 years earlier than they might think and discussed a list of signs that one may (and should) be able to do so. You Don't Have a Mortgage Payment Yang kicked things off by discussing the elephant in the room: the mortgage payment. 'For most people living in America, the largest single monthly expense that any family is going to have is … the mortgage payment. So, when that is fully paid off … your recurring cost to live monthly will shrink very quickly,' he said. By the time you're in your 50s, Yang continued, you want to make sure that you squash that payment by as much as possible. When it's dealt with, you'll be in a better position to consider retirement. According to Charles Schwab, paying off your mortgage ahead of retirement can make sense if you are trying to reduce expenses, want to save on interest or have a high mortgage rate. However, it may not make financial sense if you are behind on retirement savings or have high-interest debt. Learn More: You Understand Your Savings Rate vs. Your Nest Egg Being cognizant of the difference between your savings rate — the percentage you continue to set aside strictly for retirement, assuming an 8% return — and your nest egg, which is the accumulation of your retirement savings in sum, is key. By focusing more on one's savings rate — Yang pointed to the average American savings rate of 4% to 5% as being less than ideal — you ensure you are familiar with living below your means, an important mentality to adopt when considering a financially stable retirement. You Have Solid, Diversified Income Streams Yang elaborated on the centrality of holding diversified, hopefully passive, income streams to enjoying an early and sustainable retirement. 'When you've built multiple revenue sources beyond your primary biweekly paycheck, you're in a much stronger position to step away from traditional employment,' he said. A side business, dividend-producing investments and ownership of rental property were given as examples. Ramsey Solutions also highlighted a few passive income streams in a recent article, including renting out certain items, starting a blog and creating an online course. You Have 20x Your Annual Expenses Saved Up Noting that traditional advice surrounding the 4% rule (withdrawing 4% of your investments annually to pay for expenses during retirement) holds that saving 25 times your annual expenses is the target, Yang instead stated that the author of this rule had since judged it overly conservative. Instead, the YouTuber advised saving 20 times your expected annual expenses as being more prudent. Once you've done so, that's a sign you may be ready to enjoy retirement. Three Other Signs You Could Be Ready To Retire Yang also laid out three other signs you may be exhibiting already in your day-to-day life that don't have anything to do with your finances. You're in good health and have a sense of fulfillment outside of work: If both of these conditions are true, you could be ready to 'make the leap,' according to Yang. Work is increasingly stressful or unfulfilling: If you feel like your job is 'sucking the soul out of your life,' maybe it's time to head for the exit and enjoy your golden years. You've already reached all of the career goals you desired to hit: If you're just working for the paycheck and missing out on life's opportunities, it might be time to call it quits. At that time, 'retiring on top is probably a pretty good feeling,' Yang said. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Big Shakeups Coming to Social Security in 2025 The New Retirement Problem Boomers Are Facing This article originally appeared on 7 Signs You Should Retire Earlier Than You Think, According to Humphrey Yang Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
Never Do These 3 Things With Your Money, Says Personal Finance Pro Humphrey Yang
There's plenty of advice out there for what to do with your money, but it's just as important to know what not to do with it. In today's uncertain economy, avoiding common financial pitfalls can make a big difference. Find Out: Read Next: In a recent Instagram post, personal finance expert Humphrey Yang broke down the three things he never does with his money — that you shouldn't either. When a friend or family member asks to borrow money, you may feel a sense of obligation to do it — but Yang said to think twice before you get money involved in your relationship. 'This can get messy, awkward and strain your relationships,' he said. Instead of lending someone close to you money, offer to give an amount you are comfortable with as a gift. For example, if a friend is asking to borrow $500, offer to give them $50 'and call it a day,' Yang said. 'Yes, it still sucks to part ways with your money, but at least you are helping your friend in need,' he said. 'They may not love it, but it's better than completely shutting them out.' Check Out: Before putting your money in a savings or checking account, do some comparison shopping to see which bank offers the best interest rate. As Yang noted, this typically won't be one of the major national bank chains. 'These big banks never pay any interest,' he said. 'Move funds you don't need to touch immediately to a high-yield account.' Yang said to think carefully before making any major purchase to determine if it's really worth the cost. 'I would never spend [money] on something that depreciates rapidly without adding real value to my life,' he said. 'I'm talking about things like expensive cars that lose 20% of their value the moment you drive them off the lot, designer items bought just for status or the latest gadgets that'll be outdated in six months.' Before making a big purchase, Yang recommended asking, 'Will this genuinely improve my life or help me earn more money?' If not, you shouldn't buy it. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 6 Big Shakeups Coming to Social Security in 2025 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on Never Do These 3 Things With Your Money, Says Personal Finance Pro Humphrey Yang
Yahoo
13-07-2025
- Business
- Yahoo
Never Do These 3 Things With Your Money, Says Personal Finance Pro Humphrey Yang
There's plenty of advice out there for what to do with your money, but it's just as important to know what not to do with it. In today's uncertain economy, avoiding common financial pitfalls can make a big difference. Find Out: Read Next: In a recent Instagram post, personal finance expert Humphrey Yang broke down the three things he never does with his money — that you shouldn't either. When a friend or family member asks to borrow money, you may feel a sense of obligation to do it — but Yang said to think twice before you get money involved in your relationship. 'This can get messy, awkward and strain your relationships,' he said. Instead of lending someone close to you money, offer to give an amount you are comfortable with as a gift. For example, if a friend is asking to borrow $500, offer to give them $50 'and call it a day,' Yang said. 'Yes, it still sucks to part ways with your money, but at least you are helping your friend in need,' he said. 'They may not love it, but it's better than completely shutting them out.' Check Out: Before putting your money in a savings or checking account, do some comparison shopping to see which bank offers the best interest rate. As Yang noted, this typically won't be one of the major national bank chains. 'These big banks never pay any interest,' he said. 'Move funds you don't need to touch immediately to a high-yield account.' Yang said to think carefully before making any major purchase to determine if it's really worth the cost. 'I would never spend [money] on something that depreciates rapidly without adding real value to my life,' he said. 'I'm talking about things like expensive cars that lose 20% of their value the moment you drive them off the lot, designer items bought just for status or the latest gadgets that'll be outdated in six months.' Before making a big purchase, Yang recommended asking, 'Will this genuinely improve my life or help me earn more money?' If not, you shouldn't buy it. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on Never Do These 3 Things With Your Money, Says Personal Finance Pro Humphrey Yang Sign in to access your portfolio
