Podcast Summary: How to Money – Who Wants to Literally Be a Millionaire? (Bestie Ep) #1080

Hosts: Joel & Matt
Released: December 26, 2025
Theme: Rethinking Retirement Wealth—How Much Do You Really Need to Become a Millionaire?

Episode Overview

In this episode, Joel and Matt tackle one of personal finance’s most persistent questions: Is becoming a millionaire still a meaningful or attainable goal for most people? The hosts dig into the mythology and realities of the $1 million retirement nest egg, break down misleading headlines, and offer practical frameworks for defining “enough” and building wealth purposefully for your circumstances. Listeners will find nuanced discussion, actionable advice, and encouragement for anyone charting a path to financial independence—jargon-free and bestie-style.

Key Discussion Points & Insights

1. Cultural Obsession With Millionaire Status

• The episode starts with reflections on classic game shows like “Who Wants to Be a Millionaire?” and cultural touchstones that shape our money goals.
• Joel: "Like millions of people—oh yeah, like tens of millions of people probably were tuned into Regis Philbin hosting Who Wants to Be a Millionaire...a cultural moment." (02:45)
• They question if “millionaire” is a meaningful target or an arbitrary status symbol that's become less relevant.

2. The Flawed Pursuit of a “Magic Number”

• News headlines and surveys increasingly suggest $2M, $3M, or even $5M is needed for comfortable retirement—figures that can be discouraging and demoralizing for everyday savers.
• Matt cites: "A recent article from Fortune magazine...the 'experts'...don't believe that a million dollars is enough, that you actually need closer to $2 million...When you are faced with that headline number, I think it can feel defeating." (07:57)
• The hosts argue that these figures can breed financial nihilism or “lottery mentality” among those who feel left behind, and “one more year syndrome” in those who are already ahead.

3. Reality Check: What Do Americans Actually Retire With?

• The average retirement account for Americans 65+ sits at just $280,000 (according to Vanguard)—far below scary headline numbers.
• Joel: “To say that you need a million dollars to retire, or $1.9M like the experts say...it almost feels ridiculous, because so many people are able to get by in retirement with a whole lot less.” (14:05)

4. Happiness, Contentment, and Comparisons

• The disconnect between how much people have versus how much they think they need can breed dissatisfaction.
• Matt: "A much higher percentage of Americans believe they need to have a lot more...than Europeans think. It’s almost as if we've set our standards too high and doomed ourselves to failure." (15:05)
• They discuss how social comparison (e.g., influencers on “private jets”) and unrealistic expectations impact satisfaction.

5. Mindset and Planning: What is “Enough”?

• Focusing on your actual needs, rather than arbitrary goals, is essential.
• Recognizing that life stages, family size, health, and housing all shift expenses over time: "Giving yourself a certain amount of wiggle room, just a certain amount of margin for error as you plan and save for the future, that's really important." (22:21)
• It’s better to use a “Sherlock Holmes” approach—observe your own lifestyle and investigate thoughtfully, rather than blindly following prescriptive rules.

6. Factors That Alter the Retirement Equation

• Lifestyle Creep vs. Expectation Shifts: Hosts differentiate spending more intentionally from aimless lifestyle inflation.
• Debt & Inflation: Planning must consider evolving debts and the unpredictability of inflation—recent years have shown “nobody would have guessed...inflation numbers nearing double digits.” (26:10)
• Location Autonomy: Willingness to relocate can drastically affect how much you need—e.g. retiring in Mississippi vs. Hawaii, or even moving to Panama or Thailand.

7. The Mythical Retirement "Leap"

• The “all or nothing” mindset—working full-bore vs. doing nothing—misses the value of phased retirements, part-time work, and purpose-driven living.
• “Retirement can be...a choose-your-own-adventure…The more flexible you can be, the more likely it is that you won't even need a million dollars in that 401k.” (34:53)

Notable Quotes & Memorable Moments

• On Defining Enough:
  “Building wealth and then feeling comfortable enough to slow down and enjoy some of what you've been able to amass…requires two different skill sets.” — Joel (10:52)

• On Pursuing Wealth Wisely:
  “Most millionaires…achieve that millionaire status purely directly by investing in retirement accounts through work. It’s crazy, but it’s true…slowly but surely by making those contributions with every paycheck.” — Joel (44:28)

• On Compounding:
  “It can feel like you're moving just at a snail’s pace…but then it feels like you're moving feet at a time, maybe after a decade…that is the power of compounding.” — Matt (42:55)

• On Social Security:
  “To assume that there's not going to be any Social Security would be highly unlikely…Heads will roll before entitlements are [gone].” — Matt (54:13)

• On Trade-offs:
  “There are no solutions. There are only trade-offs. … We're often looking for a way to simplify things. … There are no simple, easy answers.” — Matt quoting Thomas Sowell (54:17)

Practical Frameworks and Takeaways

Calculating Your Number

• The 25x Rule: Annual expenses x 25 = ballpark retirement nest egg. E.g. $60,000/year = $1.5M saved. (40:34)
• Adjust upward for future inflation and changing expectations.

Track Your Progress—But Not Your Self-Worth

• Calculate and update your net worth annually or semi-annually (using a spreadsheet or Empower app). (42:06)
• Don’t confuse net worth with self-worth!

Harness Compounding

• Small, consistent contributions are more important than huge one-time efforts.
• Max out retirement accounts if possible:
  “If you sock away 15+ percent of your pay, plus a company match, over the years and the decades, you’re going to easily achieve that status.” (44:28)
• The Rule of 173: Multiply a recurring monthly expense by 173 to see its 10-year compounding cost if invested instead. E.g., $100/month = $17,300 in a decade. (51:08)

Mind Your Lifestyle Choices

• Big retirement numbers are only “needed” for big lifestyles.
• “Retiring” can also mean scaling back, pursuing hobbies, volunteer work, etc.—not just sipping cocktails on a private beach.

Don’t Discount Social Security and Other Income

• Most Americans will get at least 75% of their expected Social Security. This significantly reduces how much you need to save on your own. (54:13)
• Factor in potential pension, part-time work, rental income, etc.

Important Timestamps

• [03:46] – Episode’s purpose: Is a $1M retirement nest egg a good/attainable goal?
• [07:57] – How scary headlines ($2M, $3M needed!) can demoralize savers.
• [14:05] – Actual retirement figures are far below media “goals.”
• [22:21] – Why your needs and “enough” will change with life stages.
• [34:53] – Location and lifestyle have massive impacts; flexibility is key.
• [40:34] – Calculating your number using the 25x rule, and its caveats.
• [44:28] – Most millionaires get there by simply maxing retirement accounts over time.
• [51:08] – Rule of 173 and other practical ways to plug leaks & boost savings.
• [54:17] – No perfect solutions—only trade-offs; quoting Thomas Sowell.

Tone and Style Highlights

The hosts keep their trademark warm, conversational banter, sprinkling deep dives with relatable pop culture (game shows, music call-backs, beer reviews), humor, and empathy for both anxious beginners and the already-comfortable.

In Summary

This episode of How to Money deconstructs the “millionaire” yardstick and guides listeners toward a more personal, realistic, and sustainable approach to financial independence. The message: You almost certainly don’t need as much as you think, and building wealth is more about consistent habits, flexibility, and enjoying the journey than hitting any magic number. Don’t let headlines or comparisons derail your plans—find your personal “enough,” invest steadily, adapt as your life evolves, and remember to enjoy living along the way.

Best Friend’s Out!