---
title: 'He Works 60 Hours a Week to Retire Early – Is It Worth It?'
source: 'https://youtube.com/watch?v=cmdZ-Fd3b_w'
video_id: 'cmdZ-Fd3b_w'
date: 2026-08-04
duration_sec: 3212
---

# He Works 60 Hours a Week to Retire Early – Is It Worth It?

> Source: [He Works 60 Hours a Week to Retire Early – Is It Worth It?](https://youtube.com/watch?v=cmdZ-Fd3b_w)

## Summary

In this episode of The Money Guy Show, hosts Brian and Bo interview a young married couple, Skyler (26) and Mallette (23), who have amassed a net worth of nearly $300,000. The conversation covers their financial habits, including aggressive saving, homeownership, and their goal of achieving financial independence by age 50-55. The hosts provide personalized advice on tax optimization, retirement accounts, and balancing frugality with enjoying life.

### Key Points

- **Introduction and Early Marriage Advice** [00:01] — The hosts ask the couple about their marriage and communication. They emphasize the importance of open communication about finances and life goals.
- **Financial Backgrounds** [01:07] — Mallette grew up with credit card debt and struggles, leading her to become a hyper-saver. Skyler's parents were well-off but frugal, instilling a scarcity mindset. Both were motivated to avoid their parents' mistakes.
- **Career and Income** [04:05] — Skyler is a civil engineer transitioning from private to public sector for flood control. He works three jobs: civil engineering, private piano lessons ($25k/year), and weekly church piano. Mallette is an office assistant for the state. Combined household income exceeds $200k.
- **Net Worth and Home Purchase** [06:07] — The couple has a net worth of ~$300k, with $60k cash, $126k investments, and a home worth $565k with a $456k mortgage. They bought the house in July 2025 with a $100k down payment (20%) and a 3.99% interest rate.
- **Savings Rate and Sinking Funds** [09:12] — They save 25% of income towards retirement and investments. They use eight sinking funds for various expenses like car registration, house maintenance, entertainment, and personal 'fun' buckets.
- **Budgeting and Tracking** [12:13] — They track spending manually using a shared Google Sheets spreadsheet, entering every purchase. They prefer this over automated tools like Monarch.
- **Future Plans and Family** [14:42] — They plan to have two kids, about 2-3 years apart. Mallette hopes to stay home for the first 3-5 years of their children's lives, relying on Skyler's income to cover expenses.
- **Conflict and Impulsive Purchases** [18:59] — They rarely fight, but Skyler's impulsive purchases (like a $1,800 water softener) and Mallette's clutter from small purchases (plants, Disney trinkets) cause minor disagreements.
- **Goal: Work Optional by 50-55** [23:47] — They aim to be work-optional by age 50-55, targeting $10,000/month after-tax spending. They initially wanted to be millionaires by 30 but realized that's unrealistic without extreme saving.
- **Savings Breakdown** [29:45] — Skyler contributes 9% to 401k (3% match), both max Roth IRAs, and $1,000/month to a taxable brokerage. Mallette contributes $250/month to a 457 and 8% to a pension (3% reimbursed).
- **Tax and Retirement Questions** [32:31] — They ask about rolling over 401k to 457, Roth conversions, and solo 401k options. The hosts advise checking if the new 457 accepts rollovers and considering a solo 401k for side income to reduce taxes.
- **Cash Heavy and Sinking Funds** [38:36] — The hosts suggest they may be over-conservative with cash, holding $50k+ in sinking funds. They recommend simplifying buckets and investing excess cash, while acknowledging the system works for them.
- **Life Balance and Enjoyment** [41:42] — Brian shares his regret of being too frugal in his 20s, encouraging the couple to enjoy life more. They already balance saving with trips and hobbies, like Disneyland and home improvement projects.
- **Analysis and Projections** [47:14] — The hosts calculate that if they save $44k/year at 9.5% returns, they'll have $5.8M by 50, $10M by 55, and $15.6M by 60. Even if Mallette stays home, they'd still reach ~$5M by 50.
- **Final Takeaway** [52:35] — The hosts praise the couple for their discipline and balance, noting they are 'doing it right' and have a bright future. They encourage them to continue and enjoy the journey.

### Conclusion

Skyler and Mallette are exceptional savers who have built a strong financial foundation at a young age. With a savings rate above 25%, they are on track to achieve financial independence by their mid-50s, even with potential lifestyle changes. The hosts emphasize the importance of balancing frugality with enjoying life, and the value of tax-efficient strategies like solo 401k and 457 accounts.

## Transcript

happening tomorrow and right now we we're not thinking like 1 2 3 years in whole lot of life that's going to happen between now and the time that you guys turn 50. Job changes, family changes. We so desperately want to have the entire
deviate, if something were to throw you guys off of your plan right now, how guys off of your plan right now, how would you handle that?
>> 26. How long have you all been married? >> August of 2024, so about still kind of in the early stages of this thing, right? Awesome. >> Well, how's it gone so far? A year and a half in. For those that are cuz we have
married or about to get married, any words of wisdom you'd share with them about what's worked well for you guys? Communication. Like a lot of like we just have conversations about everything. Like ev- at the end of the
everything. We want to know everything about each other. So when y'all started about most things? Like like when it comes to like money and finance, were finance or did y'all have to get on the same page? No.
a a car lease when we were dating. >> Okay. >> [laughter] >> Um so luckily she she had the 10,000 in lease, paid it off and I was like okay, maybe she's serious about this, I can
>> Um and then everything after that was >> He's the one that got me to do like my first Roth IRA and he's like okay, you what good financial people do and I'm like okay, I'll look into this and he's
financial things. >> But I heard she had $10,000 already saved. So there was good behaviors. The this was not a fixer-upper. It sounded like the foundation was already there on good financial management at least in
>> So how did you know that? Were you like did your parents teach about personal finance? Like what No. >> Completely opposite it actually, like my family I grew up in a family with a lot of credit card debt and struggling. So,
I want to be opposite of that. I went the hyper savings like I would save like I don't want to ever not have money. Sure. So, I went like the opposite always money. They set an example of what not to do and you wanted to And I
struggle and I'm like, I don't really want that for myself. Like in a sense >> So, I I always saved up my money and I did like when he said like, "Hey, it's $10,000 to your lease. You can probably pay it now like you should, right? Like
well." Yeah. So, I'm like, "Okay, I I I clicked the button and I paid it off >> What about you? Do So, you obviously knew about personal finance at least >> My parents were very well off. They split when I was around like 10 years
old. But luckily both my mom and dad had a very good grasp on finances and I kind of leached off after them and then kind of took on their behavior. But it was kind of for opposite reasons. They never showed that they had money. I always
until I finished high school. And they kind of had the opposite mentality. They cheap like misers frugal yeah. [laughter] Who said the not so good words and you threw in the good word. And I kind of
took that on as well too. So, I followed a lot of the same savings habits as Mallette but for the different reasons. Just scarcity mindset is never enough. never want to let any of it go. >> Did they talk to you about like did they
saw it like oh we we pinch pennies cuz we have to pinch pennies. >> habits. I they never really talked about it. Especially after the divorce they didn't really want to talk about after that. But slowly after I graduated high
school my mom started to open up like here's what I invested and here's you know why I paid the house off early. >> and like going into the job field I feel like, "Okay, now let's do this with money now that you're making money."
my dad now cuz we work in the same field. So, he's also like here here's here with your retirement accounts and that kind of thing. So, it's getting a beginning it was very silent. Yeah, I
you do for a living? >> Yes, I'm a I'm a civil engineer. I currently work on airports. So, I I do the designs and drawings for like any runway projects or taxiway projects, but I'm currently in a transitionary period.
I'm switching from the private sector for airport design to the public sector for flood control. So, I'll be working on dams and channels and floodgates, Brand new career change, yeah. We're
>> same company or is it like different No, so I worked at a private company for the county government. But I'm still in the in the in between period. Like I I put in my two weeks on Monday last week. Wow, so we're like we're like
really fresh. Yeah, my last day is Friday this week and then I start in a that made you decide to make the change? Walk us through like why the shift? routes, public versus private. I've always wanted to try both before I
My dad also did both and he's ended up liking the public better. So, he's side, but I needed to try it for myself and an opportunity came up and I just it if I didn't take it. I love it. And all the money like made sense? Like it
>> the base pay is about the same, but the government benefits are a little bit better. Sure. Um I'm more in it for the experience because the more experience on different types of projects I can put on my resume, the more hireable I am um
in the future. Plus um I'm not worried about the pay currently during the getting my California professional engineering license. Okay. Um and once I get that, I'll get like a 40 to 50 grand bump. Just with getting the one license
raise? Yeah, then I'll be able to actually stamp my own drawings and that at. That's awesome. Well, but you guys are doing pretty good right now as it as professionally? >> Uh I'm a office assistant for the state.
>> Awesome. Awesome. Well, you guys are so kind. You shared a net worth statement. >> It's incredible. It's kind of balling, guys have a total net worth of almost $300,000. Now, tell me, you said you're
23 years old, right? And you said you're 26 years old. Yeah. And you guys have $300,000 net worth. Do you realize how unique that is in this world in which we >> Yeah. Uh and so you can see we've got a little under $60,000 in cash. You've got
have some sinking funds. And then you have about $126,000 of investment assets, which is awesome. And you guys are homeowners. You have a home that's worth $565,000 with a mortgage that's about 456. So,
tons of equity in this house. I think there's a lot of 23-year-olds "Holy cow. How could I be in their What was the secret? What happened? >> that house because I see the interest
rate's also 3.99%. >> Yeah, so we bought the house in July of 2025 actually. We're almost a year in. Yeah. We put a 100,000 down. And the reason why we were able to get
through the builder. It was a new construction community. >> So, they were throwing all those incentives. Yeah. And it's always been my dream to own a house since I was like 18. So, I've always been piling money
into a brokerage account since I knew when I when I could. And then when we finally got married in 2024, we put our foot on the gas. And since I was living me 500 bucks in rent and split utilities. We were really taking
advantage of that with our combination of the big boy jobs, the low expenses, shoving, you know, five, six grand a month for a year. And then at the end of the year, we we looked at our accounts and we're like, "Hey, we have enough.
houses?" And it was a complete surprise actually. neighborhood and we saw a for sale sign and we're like let's go check it out. we have this cool intro rate at 4% and we're like all
right let's run the numbers and then we looked at our budget with our 25% rule. It worked. So we're like let's move in. Is it is it like a 30 year mortgage? It's a 30 year mortgage. It's an FHA. Okay. Yeah. And so what what was the So
figure out putting a $100,000 down? Like what made you decide on such a such a were just drilled into our brains the 20% This is before I found you guys with your your lower rule.
So that that's why. So once we knew starter homes in in our area are about half a million dollars. So automatically $100,000 down 20%. So >> We always had that number in my like $100,000 for a down payment and that was
like the magical number. We started our marriage off with like maybe 50 grand in savings but in like those first 6 months of marriage we really buckled in like hey no spend month we're literally putting like into our savings account
like 5 to 6,000 a month. That's really how we built up so much of the down payment. And a lot of you like investing since you were a teenager into like actual brokerage account. He had a brokerage account since he was 18. So
that was a lot of your work into it too. What I want to know is cuz I'm I'm going minute to find out what you guys do for fun but I need to know about savings rates cuz I want to know how how extreme we're going into this being achievers
every indication is y'all are hitting on all cylinders on making stuff happen. So what's what's the savings rate? We are currently at the 25% with just the retirement contributions and stuff going into like investments.
of cash in our sinking funds cuz we have a lot of these little buckets that we expenses. Like you can talk about a little more. Well yeah we do like He said that's That's interesting cuz I I when I was like single I was starting to
do like these sinking funds and it's like my little buckets of like 100 bucks for entertainment and like 100 bucks for a car or whatever. So as we got married we combined these buckets and we have like eight. It's like
uh saving up for a new car, car registration. Like we have all our all Right. into the sinking funds as well like the annual subscriptions and the but we also have house maintenance, house improvement, um entertainment. We
have our little buckets for ourselves, the Skyler fund and Malette fund. Like that's just money that we can spend on whatever we want. Uh like our hobbies. Yeah, like those are like how we save money and we we're kind of saving
stuff you save up for yourselves. Like what what what do you spend it on? I conservative with it. >> try to save it up like my little I want bucket um but then whenever she sees something nice I'll like buy it for her.
>> Oh you so you spend of your bucket on her. >> my bucket pretty much goes to her. Um but occasionally I'll get like I'll buy myself a new tool or like um a new car part that kind of thing.
car. That's one of the ways we're able to save a lot of money is cuz I do all the repairs and maintenance on our vehicles. Well and here here's the thing y'all have come to Nashville for to record this show
and we asked you about it and I I I mean you packed three trips into one one nothing on my list. Y'all went to Gaylord, you saw the Grand Ole Opry, you went to Broadway to do all the honky tonks, y'all went to the Country Music
Museum. Y'all did everything. I mean it's like you came and you conquered it's like you came and you conquered this city in one in one visit. So the feel. Is that is that correct? Yeah. I'm very much a planner. I need to have
like what are we doing in the day, what is happening and I like to know where our money's going. Like we even have our own budget for the trip. Like we we make appropriately. >> How do you track your spending and your
budgeting? So we just have a spreadsheet template through Google Docs and over tailored it to something that works for us and our lifestyle. Have you ever thought about automating that with like a Monarch? No, cuz I like the act of
buy something while I'm checking out at the grocery store I'm entering it into my spreadsheet to make sure I don't forget. On your phone you're like doing Excel on your phone? Yeah, using the Google Doc Are Google Sheets a shared
Yeah, it's shared. Do you enjoy doing this as well? I even before we were single we started this template by our like kind of separately but like same thing. Okay, which country are we going to take over?
force. I mean I'm trying to figure out where the chinks in this this thing is this. Oh, it's interesting. Right now your total household income for you guys You just said hey you're about to get this certification where your pay is
going to go up by 40 to 50,000 dollars, right? So we're talking about a very young couple making north of $200,000 a year which is just insane. Where are you guys going? What are the goals? Like what When you think about
are y'all hoping to get out of this? Oh yeah, one thing why the income is so high I I work three jobs. On top of the civil engineering I do private piano lessons pulling in about $25,000 a year. And on top of that I also work weekly at
week to play piano for the worship services. So I'm working maybe 55 to 60 hours a week just between those three jobs. So I work a lot and I don't get a lot of time to just sit and relax or hang out
with Malette. So I'd like to actually come down in the the working so I don't >> You said that's 50 to 60 hours a week? >> Yeah. What stops you from coming down?
Um we only meet the 25% housing rule if I Yeah. Basically. Because of our mortgage being I think you said that. Your monthly mortgage right now, in terms of cash
3,300. Is that right? >> Yes. 3,360 a month? aren't you? Yes. [laughter] your I think you got your thumb on the scale on on your on the
Yeah, a little bit. 50 to 60 hours a week working. What What do y'all do when you're not working? Like are you are you going out to movies and going to have
Lately, we since we got a new construction house, we've been working on the yard, like making a yard for the last year. Every single weekend we have his job, but I tag along. I love it. Yeah, since the the back rooms our
backyards are completely unfinished, we've been putting in 1,800 square feet of pavers by ourselves, building retaining walls, adding water lines, installing gutters, and I'm just YouTubing it and kind of figuring out
how I as I go, cuz I don't want to pay. I look at We got some contractor quotes, money if I just invested the difference and did it did it myself. And I think it's fun. So, that's what we've been doing in our downtime is just working on
to think about the next 10 years. When you think about where you're at today and what you see your life looking at looking like 10 years from now, how's it different about you guys in 10 years? Hopefully we'll have kids. Oh, kids. You
to plan for a family. How many kids you guys want to have? I would like two, so Disneyland. Even Yeah, she's [laughter] a super Disney fan. Who would have thought that? All right, so I'm a fellow Disney fanatic myself.
she saw when I showed them one of your episodes was the the partner tattoo. Yeah, I love it. I loved it. Um all right, so want to have a family. When that you're currently in still work for a family of four? Great. So, that's not
something we have to worry about. What do you think will change when you have kids? I am hoping to like not have to work at least for the first like three to five years of the kids life. The goal is for like Skyler's income to go up
enough to cover my income. I heard from a bird that he might make $40,000 more a >> [laughter] >> comes in. But if there's if we if we add and we take away the church Does he got to keep He got to keep working three
jobs for that to work or Uh the goal is no. Um but I know you kind of got to pick and choose what you want to do. Uh if I cut back the extra jobs and just we go down to one income, I'd probably be hovering around 140 to 160. When do
say three to five years. Cuz we're still young. We want to travel first and then enjoy a little bit more of our 20s and then hitting closer to 30s, maybe. If money wasn't an issue, it'd still be three to five years or is
it Is the money making it extend out? No, I think for sure three to five years. That's cuz I've always said like, "Oh, I want to have kids around 30." And I'm 26, so that's why this nearing the 30s. Okay. That's where I'm
children? I I think you've probably thought of these things because you seem Exactly. >> No, no, no. Maybe two to three years apart. Cuz that's my and my brother's relationship, his and his brother's
relationship is like that two three year gap. And I think that's great. Like as friends. Like I like that relationship, grew up together almost the same time. do is like enjoy your 20s before you have kids. Do you feel like you guys are
the things that you're doing right now or do you feel like, "Uh we're pretty nose to the grindstone. Every single weekend we're laying pavers and then I'm working three jobs." I think we're easing up this year. Last year was very
strict about saving up money. We got to get the house. That's the goal in mind. "Okay, we got to finish the house." But now that the house is about to be done, now I'm like, "Okay, maybe we can start doing more trips." And like we already
Awesome. >> So, that's kind of where it's going. house. House is done. Now it's going to finishing the house. Almost done. So, now we can start kind of living more. So, what are some of the trips you have
planned? Uh we're going to be going to Japan uh in next year for my brother's uh graduation trip. That'll be like a big trip with our families. Um and then sometime. Yeah, this year we'll go visit my family. My family's in Mexico, so
we'll be going maybe two times this year. And then like a friend's bachelor trip in Utah next month. So, like that's like more things that in the past we would have been like, "Uh maybe maybe not. Like I don't know." And now it's
spend. Like let's go have fun. Like let's just do it." And are these like things that we have sinking funds for or are we just like, "Oh, we can do this out of cash flow?" We have sinking funds for. That's part of the
Yeah. So, one of the You said there were eight buckets in there, right? And did Did I hear correctly that like one of the buckets uh was was registration for the automobiles? Yeah, so Is it very
California? Not really because our cars are so old. Um but since it is an annual expense, I I think I put like $11.36 every month into the into >> All of those buckets are in the high-yield sinking fund. So, they are
in that sinking fund. So, it's just don't have to stress about it like, "Oh, we got to add it to the monthly budget." that's our logic behind that. What do y'all fight about? Do y'all fight?
Not Not really. Do y'all ever have a fight? Yeah, I still we do fight. I the issues that y'all fight about? Like what are we eating tonight? Where do you want to go? Yeah. Let me go and tell you that one doesn't change.
Not really huge fights. I think we're still in the the honeymoon phase. Um so we're still trying to figure each other out, what makes each other mad. Uh >> you figured out so far? What do you think that you do that drives her nuts?
I think a lot of the impulsive purchases sometimes. Hold on, you're the impulsive >> the impulsive purchaser, yeah. I just heard that we're budgeting $11 per in >> But it's also impulsive. Okay, we just had this earlier this year. We went to
Vegas. We stayed at an Airbnb that had a water softener. He loved that water softener so much. The next week he paid 1,800 to get one installed in our house. >> That's the impulsive buys he does. >> Yeah, so I'll I guess we do clash on
that. I'm like, do you really need to buy that? Like cuz he he'll make the big nursery and buy a little plant. Y'all Y'all know what the definition of impulsive purchases is, don't you? I mean, water softener? This is what we
think No. It is golf clubs. It's like, you know, exotic sports car without talking. I mean, he bought an appliance for the house. I mean, it's This this is
have a conversation about it? Or was it the fact that he just experienced it, >> we had had that conversation. We said we were going to do it from the time we got really hard water. Like we should save up for it. And it was like a save up for
it in the future, maybe after we're done with the backyard, we'll do it. But installed. That was the oh, wow, okay, I guess we rushed that. Yeah, we we always talk about big decisions like that, but it's uh it's like how long do we wait
That can be a point of uh conflict sometimes. So how did y'all How did how where was the communication on how long you were going to wait? Like you we're doing it now. Hey, they're they're here to hook it up. I basically said we
right, we could we could do this. We have enough We have half the money in >> our sinking fund of house improvements. So that's money that we're allocating to improving the house. So he's like, "Hey, we already have 2,500 in here. Like, the
the water softener is going to be about that much. Like, should we just do it?" And I'm like, "Really? Like, go get quotes. Go get like the best people. Like, check on every single person that's coming into our house.
Background, whatever. Make sure they're certified." And he's like, "Oh, yeah, I found our neighbor. He works as a plumber. He does great work. And he'll >> Yeah, and then we just cash cash flowed the rest cuz luckily we have quite a bit
of discretionary money after the end of each month. And we just lower the amount we're putting in the sinking funds and then we just apply it to whatever we want. All right. So, impulsive purchases is what you think drives her nuts. What
is What does What do you think that you do that drives him nuts? Uh I do a lot of little purchases, but like for again, hobbies. Like, we live near Disneyland, season ticket holder, I'm assuming though, right? No, not this year. We I
used to be when I was single. It's really expensive. Like, their tickets are like $1,600 for a pass holder, so >> many times are you going? Well, this okay. Yeah. [clears throat] >> [laughter]
buy is like, I'll see the little trinket or the little pins or the little things Right now, like as of this year, I like getting into plants cuz now that we have a house, I'm trying to decorate it and little little plant things and now I'm
buying like pots and soil and how to repot the plants and I'm learning all "Another plant? Like, where are we going to put this? Yeah, it's starting to look living room. So, that's kind of the biggest like
conflict, but it's a Is it the spending or the clutter that is the issue? I think both. Like, I am clutter. Like, upstairs we see our office and you see his desk completely neat and perfectly good. And my office, since I don't
really work there, I work at an office, my desk is just a mess. So, that's really a big sticking point in our relationship, I would say, actually >> I say more the clutter. Um it's never an issue of can we afford it cuz we know we
need another one? That kind of thing, you know. Cuz he's very like I like things. I like I have a lot of clothes. I have shoes. I see a purse I like I'll just buy it. But he's like I don't need another shirt. I don't
need shoes. >> does he has the same three pairs of since high since college. Like I don't think you've bought shoes since you've been out of college. But he he doesn't need that stuff. And for me I like the
the little knickknacks, the shoes, the purse. So far, I mean y'all are like the ideal star students. I mean so I'm trying to figure out you came on making a millionaire. Do you know cuz I I actually read in the notes Mhm. you want
to be a millionaire by the time you're 30. Mhm. That that was >> Is there a what to it? No, that was just like okay, that'd be cool to hit this number. Um but after I applied after I submitted that question,
realized okay, that's not going to happen unless [laughter] we're saving happen unless [laughter] we're saving like, you know, 80% of our income. Um so I've kind of gotten away from that. Okay. Um I know
is fine. I don't plan on retiring when I'm 30. I'm just getting started in my career. Um but our our end goal we'd like to actually um be like work optional around like 50 to 55. >> Okay. Um so that's where a lot of our um
questions come from. We want to know if we're on the right track to do that based on our current uh investing and savings rate. Okay. Um and the of people around us that we can kind of talk to. Um the people we can talk to
who are in similar financial situations are a lot older. Um and then the people if, you know, what what alcohol we buying this weekend, you know? >> Right. Um that kind of thing. So that's we're more like we don't know where
the curve, on the curve. Okay. That kind of thing. Yeah. So all right, let's talk about this. If we think about work optional life around like? How much money do you need to be able to
spend at age 50? >> So, we would like to be at $120,000 come up with that? >> Yeah. $10,000 a month. And then that's what I based off all my
invested. >> don't spend $10,000 a month. >> Uh You spend currently somewhere between 5 to 6,000 a month. If you take out the >> Yeah, that's based on the current with the sinking funds. We don't want to stop
the sinking funds, I guess, even after we stop working, which is I don't know. >> Tiny buckets of money. Like, oh, if I have $10,000 on my entertainment fund, then oh, I have I can plan a big trip with that money. Like
those buckets every month, and as they grow, I can see the opportunity for more. Do you all ever worry about fatigue of um cuz look, I was I actually you all a lot, but I will tell you as you
get in your 30s and 40s, you're not going to want to track every dollar for forever. I mean, it plus it creates weird dynamics once you you start some weirdness. But unless but you probably might take over the finances
even with the kids. It's just that I'm trying to make sure you all grow into the best version of yourselves. Do you think you'll always want to stay on a such a tight budget system versus what we call kind of a manage, you know,
money system to where you you kind of automatically have money going, but then you just if there's money left over, you go and live your best life. I've never really thought about any
teenagers >> it. I mean, that's a t-shirt that says, "I've never thought about life without spreadsheets." Oh, that's amazing. That's how we've been like in a way growing up. Like, we've been I
You've probably been doing it since earlier. Just kind of like that's just the way of life. Like we've been like tracking our spending. Like Like I said mindset that I'm scared to not have money. So, like the spreadsheet is like
there's money there. And oh yeah, we have $500 left at the end of the month. brokerage account or like the more savings or even more entertainment. Like if that month we want to do something extra. Oh, we have like $200 left at the
towards that. It's like a security that I've always like didn't grow up having That's crazy. >> If the goal is work optional by 50 55.
And you just said hey, I want about $10,000 a month after tax, $120,000 a spend. Uh and if we're going to like have two exactly probably three years apart cuz we're going to plan this through.
Uh and we're going to drop from one from three jobs down to one job, drop from four incomes down to one income. Can you do that on $140,000? Like at $140,000 can you save 25%? If you save 25% is that going to get you to this goal? We
We haven't actually run the numbers yet on that new income. Everything we've run is based on the now. I guess that's kind of our downfall happening tomorrow and right now. We We're not thinking like one two three
that we did the numbers for you. And we ran it and we're like hey guys, it doesn't get there. Oh man, it just it doesn't Oh, it doesn't work out. So, going to have to keep working three jobs until you're 50. How do you feel about
that? Then that's what happens, I guess. I don't I don't make the rules. You >> What I'm trying to allude in here is that there's a lot of life 23 and 26. to happen between now and the time that you guys turn 50, right? I mean just job
changes, family changes, unknown unknowns that you're just not even prepared for. And I think so often we achievers and planners we so desperately want to have the entire plan planned out. What what we say in the
early on, when you're starting out at the beginning, it's more like throwing be laser precise. You just want to kind of get in the general direction. And we say get in the general direction for most folks, if you can save 25% and I'm
age, 25% is not even going to be required to get there. You're going to be in a great spot. But what I hear is like or what I worry about is if something were to deviate, if something were to throw you guys off of your plan
The first thing that would probably have to change would be our lifestyle. buckets. That's where most of our margin comes from and I think that'd be the easiest thing to kind of trim down if something
did affect it and we weren't able to bring as much money in. So if the goal talk to us about where your savings you said 25% savings, right? Walk us through operations. Where's your savings going on a month-over-month basis right now?
on a month-over-month basis right now? Yes, so I I have 9% going into my 401k. There's a 3% match. I also have the Roth IRAs, both of our Roth IRAs are getting maxed out every single year. And
on top of that, we are putting a thousand dollars a month into a regular taxable brokerage account. Originally, we earmarked this as a pay off the house we earmarked this as a pay off the house early when the the the balances meet up.
going to be a bridge account because since our interest rate is super low, we'd rather just hang on to the mortgage like a little pet. That's like music to And that's >> At least until you're over 45. Yeah. Cuz
there's going to be a lot of life. You want that margin just to make sure always good to have the ability to pay off the debt than to just pay it off. And then what retirement account for you? Through my job I have a 457
account. I put in 250 bucks a month paycheck into that, so 500 a month. And then I have a pension through my job because it's a state job. So I put 8%
into it through my paycheck, but then I get reimbursed 3%. So it's really get reimbursed 3%. So it's really putting Always 5% out of Okay. 5% out of actually put the 3% into your pension, they pay it back out to you.
You sure they're not putting more money also into the pension? I don't know and I don't think so. Cuz usually government pensions, like I know that the government that I used to to work with, we had our employees put in 8%, but then
we were putting in 11% the government was because the mathematics worked out that we had to pre-fund a ton of the assets because people retire at 50, 55 money's there. >> Yeah, to like for my job is a very
Um and it's also not like a permanent job. It's only for 3 years. So to my understanding it's only I I put 8%, they refund me 3% and then I'm sure as I I
get higher in the I guess the government. But >> Well, what's the vesting? Do you know on your pension? Uh I have no idea. >> Okay, we probably want to find that out. >> On your 457, is that Roth contributions
>> Yes. Awesome. And then on your 401k >> Everything's Roth. 9% Roth. But that is at my current employer. When I switch to the new job, it's going to switch over to a pension and then a 457 as So same thing. Likely
though probably 12%. You know what's great about those 457s? We we don't >> at 50, 55, there's no [clears throat] early withdrawal penalties. >> it's it's going to be sweet. Yeah, it works out quite nicely with your spouse
>> right cuz she had the option to do a 401k or a 457 and we kind of just rolled [laughter] one. Uh cuz it was the same Is there there's not matching on the 457? Okay, yeah. Then yeah, that's a great Assuming the investment options
choose. What questions do you have for us? What are some things that we could speak to or answer that would be helpful for you guys? Since the the profit sharing and the employer match in my current job goes into a pre-tax bucket
for the 401k, as I'm leaving, should I take that money, pay the taxes on it Roth, or should I leave it, or that kind of stuff cuz I also don't want to break that pro rata rule because I expect my our income
to go over the 240 limit um with the back door Roth. That kind of thing. I I'm really unfamiliar with those types of rules and tax strategies and all >> Well, the good news is right now you don't have to worry about back door Roth
where you can contribute directly. But, if it does go up, you would want to perhaps keep that intact. One of the things you want to check with both your four Well, specifically with your 457 provider with the new plan is will they
accept rollovers from other retirement plans? Most will. Most will allow it. But, assuming that's the case, you can roll your 401k from your old employer into the 457 with the new employer. Potentially. You'll have to verify that
and rules you'll you'll want to check on. But, that's something that you have also nothing wrong with leaving your 401k if your current company is with a really good provider like a Vanguard or Fidelity or something like that. You can
leave your 401k behind and still take advantage of the investment options have to roll it over. So, that's something to potentially consider. Okay. >> On the Roth conversation, y'all live in Y'all live in California. Right. Right.
So, you're in a relatively high income tax situation federally, and then you add to that the state piece. Because what's your state income tax at your income? Uh I think it's like 14% somewhere. Well, it's
>> that high at your income. >> cuz I think they you know, it's 13 14% once you're over 600, but I bet it's I bet it's somewhere between 6 to 10%. >> Okay. Um and then you're in the federal 22% bracket right now, so I mean it's
just it would break my heart to watch 30% just evaporate. Right. Um just for the sake of turning it into Roth when you all have the ability exactly what Bo said. You can go ahead and fund Roth on you know with your Roth IRAs every year
cuz you all's income is not that high. And you all likely could choose Roth 457s or that's one of the things we'll look at when you're trying to figure out look at when you're trying to figure out Roth 401k or or 401k versus 457. I don't
have to know whether do they offer Roth options on both of those because then if that would that would be pretty powerful, too. On your side income, the do they pay you? Uh I'm a W-2 to the church and the piano is Self-employed.
to be making through the uh through like the teaching? Uh 24 grand a year. It's about 2,000 a month. Awesome. >> what, 10 students? Yes, 10 students. 10 can do in terms of like tax planning with that given that it's self-employed
income, give us a side you know, side income. Um do you think he'll have to start making estimated payments on 24 grand if his uh Well, you all do your taxes or you getting refunds currently? No, we actually had to pay a lot last
we got married. I didn't do the extra withholding check, so we we just paid >> Yeah. Oh, wow. Last year, but luckily we had the money. It wasn't an issue. lesson learned. And lesson learned does not do it again next year.
It all depends is your income going up? I mean to the like do you count on like make $40,000 more, but hopefully there's some family planning that comes into play. It it all goes into cuz a lot of times
greater than what you paid last year. And then once your income gets over a certain level, you got to pay them greater than 110% of last year. And if and the withholding was naturally protecting you, then it's nothing wrong
with you giving the government the money in April when you either file your because you wouldn't have any penalties. The big things is we're trying to make sure if all of a sudden your income start going down or
you know from other sources but you're making it up through the side hustles. payments because the worst tax in the world is those penalties because it's just unforced errors. It's just giving away free money. So, it a little
planning and it's gotten to the level This is one of the things cuz you're all like a financial planner, I would throw you all back in the water and say you're close but you know that you just basically need somebody to go through
basically need somebody to go through and do the math exercises with you and you know and and then make sure you're in the right path and wait until you add more complexity with success. And this is but this is one of those
areas where tax planning that I think that somebody could have definitely add some value to the conversation. And you said that you are changing jobs this year, right? Contributing 9% to your 401k but it's 9%
year, right? And then with this new job >> Yes. >> Correct? So, really unique thing this you think about is with this side income there's even a potential you could do a
there's even a potential you could do a solo 401k and you could potentially already contributed to a 401k but in future years you might be able to like because you can contribute to 457 through the government job and the 401k
through the solo really really exciting way to double dip on your retirement need to be saving more. That is a completely legal loophole. And the way save it's going to be a really good way to drive that income down super super
low because you're not participating in a 401k elsewhere. This year you want to self prepare your taxes or do you have an accountant? We had someone do it for to ask and we'll mention this as we kind of go through our planning is
you'll want to make sure that you don't put too much into the solo 401k that you with your current employer and the new solo 401k. In in those two you're still capped at the 24,500. Yeah, that got real nerdy real fast.
>> There's some exciting things to do there. All right, what other questions do you have for us? One of the questions I have is are we too cash heavy in the in the sinking funds? Cuz the likelihood of us using all that money at the same
time is very low. And me looking at it, I know cash is not making much money account. I throw it into the S&P. this is where I catch the financial mutants who who are fibbing on both
You said you want us to play them for $10,000 a month. Yep. What do you actually spend a month? We we spend $5,000 a month. But that's >> how unique this is. Only spending yeah, bare bones nothing else. Yeah. So
emergency reserves was I mean you all probably would be fine doing six months, you know, three to six months. See I'd rather go a little conservative since So I mean if you think about that you know, 30 grand.
>> And you guys have over 50. So I mean yeah, you're probably you're And and tell me get Okay, so sinking fund expenses. New car big expense. What were the other
ones? What That was two. There was eight of the eight in there. Yeah, like house >> Like house main like house improvement like what's an example of a house improvement. >> $1,800 expense.
And then anything new that we want to add to the house that would probably increase the value like landscaping, you know, installing gutters, that kind of stuff that's already there like a broken appliance or water heater. That's the
maintenance. Um And we separate it. Like I don't know if that's like buckets work like oh, I have much in But like, should we be combining and making our life easier or is that like
>> In my opinion, yes. But I want to be very careful not to impress our bias is working, there's something to be said for that. getting complicated. >> overcomplicated and overconservative cuz
realistically, if you have $30,000 in an emergency fund and that's truly an emergency fund and you decide you want to go buy a uh if you and you decide you want to go out uh and buy a water softener and you're
telling me you have thousands of dollars of discretionary income every single your spending, then I would argue that $1,800 could That's that's that's that >> Okay. is not something that necessitates
a sinking fund. Now, replacing an automobile, going on a big trip makes all the sense in the world. But these little things like $11 a month for annual car registration, >> do that. perhaps we're majoring in the
break your system cuz if it's working for you guys and Look, we're We out and you guys aren't don't have any yet. So I don't want to suggest you got to change things. But in reality, you probably could simplify, probably could
streamline, be a little more efficient. And when you add efficiency, generally, would prevent you from holding so much cash and maybe have some of that cash enough assets that we ought to definitely find out ahead of the curve,
supposed to be. Mhm. But then after that, you don't need a financial enabler in your corner because Okay. If I could If I could go back in time Life has could go back in time and change one thing when I was in my 20s pre-kids, I'd
have gone to more Tuesday night movies and I'd have gone to more coffee shops stuff. I was so tight and so worried about saving every dollar and hitting that sort of thing was going to break the plan. When realistically, the
behaviors that I had in place, the plan likely was not going to break. And I bias, just cuz I made it to the other side. I do think realistically I could have not focused so much on being perfect so early, and it probably would
things. But again, sounds like you guys are already doing a lot of that. I don't guidance do an exercise as a couple, cuz y'all are a little different in the fact that
you said you have little things, like the trinkets from from Disney. Yeah. fund. You just need to have a conversation. Is that that we're just going to make sure that you get to do what brings you happiness? Yeah.
>> Mhm. Right. And then the same thing for for for you, Skyler, is that you know, what what are the things if there's like nerdy little gadgets, cuz I'm a gadget like a play car. Let's just make sure a play car? Like an
extra car that I can like mess around with and Oh, like a little project car. I thought he meant like an RC car. I was like, dude, He'll get one. >> Because I I've never driven a manual car before. I've always wanted to learn. Um
but I need to buy one in order to learn. So Another one of your like hobby goals. Yeah, cuz our cars are old. That's also one of our our big goals. We or she wants to upgrade a car. But we have a a Honda Pilot. It's got 300,000 on it.
And we also have a Prius. It's got 220,000 on it. And they've lasted this long cuz I take care of my cars. >> Sure. But eventually we would like something new and we're getting bored of the old reliable cars. We want something
new. Um but that's one of my impulse buys. I I'd like I want a Honda Fit. Those little rally cars, and I want to modify it to be able to like drive in that's not your daily driver. This is just like a fun thing.
Um so that's one of my impulses I've been thinking about for like like for, right? >> Another one he has, it's the pilot's license. Okay. He has been talking about getting a pilot's license since I can
remember. So since I I work in aviation, I'm always on site on the airports doing management. So, I'm always talking to the the tower or the pilots and I always see those guys flying up in the sky. I'm like, that'd be so cool to do it. Um
20 to 30,000 dollars just to get a private pilot's license and that's one of my other goals, but I don't know really where that fits into the foo. >> is. I mean, it's it's it's because those are kind of abundance goals.
>> Once you're saving 25%, Mhm. everything else is fair game. Uh Honda Fit rally cars, airline becoming a private pi- all those things Exactly. >> game. Once you've checked the box and done what you need to do, they're not
your budget. You can spend freely. That's why we have the 25% so that you about it. >> See, I feel like now we're starting to make sure [laughter] that y'all got the star student award first, you know, put
the gold star next to you before you now and you don't have to you don't have to be bashful. Mhm. If it brings you joy, if it brings you happiness, it's okay to thing sometimes with us financial mutants, we're so tight with when we're
so good at saving and we're rewarded by by building these nice net worth statements, it's okay for somebody to be in your ear going, "Do it. Go enjoy yourself." You know, cuz I want you to live this life with so
much excitement and zeal that when you get to be my age, you go, "Well done." Awesome. We're excited to get to work. Uh we'll put together a plan and see what path are you guys on Mhm. and is that path the path you want to be on?
>> [laughter] >> it's going to be great. >> Thank you. >> No, thank you guys. But, what an awesome conversation with Skyler and Mallette and honestly, I don't know exactly what
to say because man, they're doing a lot of stuff. Really, really good. This one threw me a little bit because I came in thinking I was going to bring in some old man wisdom cuz I was like, "Look at these young, you know, financial
everything right. Surely they're leaving something behind." cuz I was like, "It's not uncommon we see people who are so amped up about saving for the future that they're they're doing that at the expense of also of building blossoming
forth. Surprisingly, when Skyler and Malek came in here today, they're actually not only great at saving and building wealth, but they actually have been doing a very good job of of making memories. I mean,
even the fact when they came to Nashville, they had like a hit list that took out like the entire city in like a 2-day period. So, really impressive >> Yeah, they're doing a lot of stuff right, but they still have some unknown
things coming their way. And so, uh I think when we broke down their savings strategy, where they're at currently right now, uh Skyler's putting 9% in his 401k, he's getting a 3% match. Malek's putting money into her 457 on the Roth
side. They're both maxing out Roth IRAs. They have a thousand bucks a month going in the after-tax brokerage account. So, when you look at their savings rate, when you look at their savings rate, they're currently saving more than 25%.
they're currently saving more than 25%. So, they are doing exactly what you want a financial mutant to be doing. And this doesn't even factor in Malek's pension. work even if there wasn't a pension there.
When I when I think about where they sit right now, I'd argue even at the young ages of 23 and 26, they're kind of like in step eight. That's where they are in >> actually let's see if we can actually add some value to these overachievers. I
was happy to to to see well, at least happy to see we have an opportunity to have some value here. There's a unique thing with the fact that a 457's on the table plus enough side income to where a solo 401k could
be really powerful. Yeah, it's really interesting as he changes jobs, he's going to go from having access to a 401k to now 457. And those exist in two of the things he could potentially do with some of the side income he has
$33,000. Right now, it's all taxable. And so, if you were to receive that income, pay tax on it as as a self-employed sole proprietor, he's going to pay about $9,200 just in
federal and state income taxes. But, if he were to in future years be able to open up a solo 401k, he could still defer $24,500 into that solo 401k rather than showing $33,000
of taxable income, he's only going to show about $8,500. Just doing that, you know, shifting that $24,500 into the 401k would save them almost $7,000 in taxes in total. So, it's a great tax savings opportunity. Not Not
more, but it is an opportunity to save money in taxes. Now, there is one thing careful this year because he's transitioning jobs this year. He was contributing to a 401k at his previous employer. So, he's not going to be able
employer. So, he's not going to be able to do a full 24.5 into a solo 401k. He's deferral limit. >> And another great benefit of this is that because they are so young, adding flexibility in the system that they did
want to leave the workforce early, that 457's not going to have the early withdrawal penalties. >> So, one more planning flexibility element that they'll have, not only with the tax savings of the solo 401k, but
the 457's. >> And they've already they let us know ton of sense for them. We did a little bit of analysis. It looks like they're going to be in the 28% total marginal marginal tax bracket. And so, they kind
of fall in that gray area where they could do Roth or they could do pre-tax. It kind of depends on what their goals are. If they find the cash flow's a little tight, that might lend them towards doing pre-tax
so that they free up monthly cash flow. But, we do love it their age is loading a of a personal decision for them based on where they ultimately want to go. probably just this is my personal opinion probably lean more towards the
Roth because I think they're going to have even bigger peak earning years in the future and there's only so you're only in your 20s for so long where you compounding growth and that wealth multiplier. So, we've already
stuff right. So, you know, what kind of path does this put them on? What sort of trajectory does it put them on? We just said if they continue saving at their current clip, which is a little under $44,000 a year starting right now at an
$44,000 a year starting right now at an average age of 25 and they save 25% of average age of 25 and they save 25% of their gross income over the next 30, 40, exciting. Again, at their age, we assumed a 9 and 1/2% annualized rate of
return. By the time that they get out to age 50, they have almost a $5.8 million age 50, they have almost a $5.8 million portfolio. By 55, almost a $10 million portfolio. And then by 60, over $15.6 million. And even if you
they they said they don't know exactly what their lifestyle needs are going to be, but they'd love like maybe $10,000 per month after tax. well on their way to doing that, accomplishing that at some point between
50 and 55 years old. >> Now, but we know life has a sense of humor in the way that throws curveballs and you know, and we were kind of joking children and other stuff. There is a chance that they could choose the you
know, a path where Mallette stays home. What would it do? Would it blow all this if they did some family planning? >> Yeah, I think even if the side income were to go away and Mallette were to stay home, I I I don't see a scenario
where they don't save 25%. Just for this household, that is sort of a given. So, $140,000 a year and they were saving 25%, which is $35,000 a year, they're still on an unbelievable trajectory. Almost 5
million by 50, little over 8 million by 55, 13 million by age 60. Again, if they're looking for that that magical, you know, $10,000 after tax, it's probably still happening somewhere around that magical 55. If they can just
keep the good decisions they've been making up to this point rolling forward, future's bright for them. So, if you if you do it >> You do it right, you do it light. >> That's it. That's what I I think they
that is the big takeaway from today's show cuz I know this is going to be one warts?" You get away with a lot when you start early and do it often. Lots of grace in your great big beautiful tomorrow. But
we also don't know what could change, right? Kids, family, job circumstances. decisions to kind of put themselves a little bit ahead of the curve. Now, they got to finish the drill, but I think that because they're doing so well so
handle whatever life throws at them. If they can continue to keep that mutant >> So, if there's other financial mutants that want to come on making a making a millionaire, you can go to moneyguide.com/apply.
free resources or tools, you can go to moneyguide.com/resources. Skyler, Mallette, you get a gold star. Did you hear that? You rock this thing. your host Brian, joined by Mr. Bo. Money Guy team out.