Money Guy Show

Episode: What It’s REALLY Like to Build Wealth in the Military

Hosts: Brian Preston & Bo Hanson
Guest: Aaron (Aaron Talks Money)
Date: September 1, 2025

Episode Overview

This episode dives deep into the realities of building wealth for current and future retirees, emphasizing universal lessons that apply to all ages and backgrounds—not just those in the military. Brian, Bo, and Aaron (from Aaron Talks Money) analyze a comprehensive JP Morgan study of 5 million retirees’ habits, distilling the research into actionable steps to increase your confidence and success in wealth building. The team debunks retirement myths, discusses how early saving leads to dramatically better outcomes, and reminds listeners that true wealth is about much more than money.

Key Discussion Points & Insights

1. Retirement Anxiety Is Universal

• Widespread Worry: Nearly 70% of Americans believe they’ll never be able to retire.
  • “One in four adults over 50 do not expect to ever be able to retire. So this is a widespread issue.” – Bo (01:17)
• Not Just Young People:
  • 55% of Gen X (Brian's generation) don’t believe they’ll retire.
  • 1 in 3 Millennials aren’t confident about retirement.
  • 44% of Gen Z feel behind on retirement savings. (01:34)

2. The Power of Time and Starting Early

• JP Morgan’s Visual:
  • Investing $200/month from age 25 to 35 ($24,000 total) grows to $293,000 by 65.
  • Starting at 35 but saving until 65 (3x the money) yields $250,000 — less than starting early! (02:22–02:57)
  • Consistency is best: $200/month from 25 to 65 grows to nearly $600,000. (03:53)
• “You Choose Your Hard”:
  • Saving in your 20s is tough, but waiting until your 40s or 50s makes catching up exponentially harder.
    • 20s: Save $95/month for $1M by retirement
    • 30s: $340/month
    • 40s: $1,052/month
  • “That is 10 times harder than the 20 year old. … It doesn’t take just pennies on the dollar. Literally will do more by putting that money to work.” – Brian (04:39–05:58)

3. Strategies to Remove Friction and Build Saving Habits

• Automate contributions—make it “automatic for the people.”
  • “If you can make the good habits as easy as possible and the bad habits as hard as possible... you can set yourself up.” – Bo (06:15)
• Use pay raises for investing: Automatically route a portion (e.g., 60%) of every raise straight into savings. (07:05)
• Focus on getting the employer retirement match as a bare minimum and treat saving as a nonnegotiable expense.

4. Saving Isn’t Enough—Invest for Growth

• Wealth Multiplier:
  • Explains how every dollar saved early compounds dramatically. (08:23)
  • At 20, each dollar can turn into $88; at 30, $23; at 40, only $7.
  • “The best time to start investing was yesterday. ... The second best time to start investing is right now.” – Bo (09:21–09:23)
• Consistency Is Key:
  • S&P 500 study: $10,000 from 2005–2024, if left untouched, grows to $72,000 (10% annualized).
  • Missing just the 10 best days? Drops to $33,000.
  • “To be a good investor, you get to be lazy. You don’t have to do anything.” – Brian (11:01)

5. Behavior and Mindset Matter More Than Headlines

• Focus on What You Can Control:
  • Savings rate, spending, asset allocation.
  • Ignore market returns, tax policy—can’t control those. (16:14–16:55)
• “Your behavior is most likely the biggest difference maker in your financial outcome.” – Bo (17:39)
• Use free resources (moneyguy.com/resources) to benchmark your savings rate and set goals.

6. Tax Optimization: The Three Bucket Strategy

• Three Account Types:
  • Pre-tax (traditional 401k/IRA): Best for income-producing assets like bonds.
  • Tax-free (Roth, HSA): Maximize for long-term growth.
  • Taxable (brokerage): Use for flexibility, tax-advantaged on dividends and gains.
  • Match account and asset to optimize long-term after-tax wealth. (20:28–21:59)
  • “If you utilize these buckets ... you can lower your lifetime tax bill and you get to keep more.” – Aaron (21:43)

7. Make It Easy: Index Funds & Target Date Funds

• Evolution to Simplicity:
  • Technology has made investing easier and more accessible.
  • Index funds provide low-cost, broad-market exposure; target date funds automate asset allocation glide paths until retirement. (22:49–24:57)
  • “Everyone can win with them.” – Aaron (25:16)

8. Money as a Tool, Not the Goal: The PUSH Principle

• Purpose: Have something to get up for every day.
• Use: Engage, give back, stay active.
• Socialize: Build community and friendships.
• Health: Without it, nothing else matters.
  • “If you don’t have your health, ... it doesn’t mean anything.” – Aaron (26:28)
• Don’t defer all happiness to retirement—design your life now for fulfillment.
  • “It’s not what you’re retiring from, it’s what you’re retiring to.” – Brian (29:48)
  • “Wasting time can be even more expensive than wasting money.” – Bo (31:04)

9. Meaningful Stories: Health and Purpose

• Aaron shares her personal health journey, surviving a brain tumor and living with epilepsy.
  • “I just, I don’t think you know until you’re in those moments how precious your health is. ... None of it matters [without it].” – Aaron (31:29)
• Foster friendships, health, and purpose before retirement—don’t wait.

10. Get Help and Use Resources

• Wealth building is complex—know when to get outside guidance, especially as financial decisions become more intricate near retirement.
  • Money Guy offers free guides and resources to help map out your path (32:49–33:22).

Notable Quotes & Memorable Moments

• On starting early:
  • “I’ll take that return any day.” – Aaron, on investing $24,000 to get nearly $300k by 65 (02:40)
  • “The best time to start investing was yesterday. ... The second best time is today.” – Bo (09:23)
• On life stages:
  • “We have these stories that we tell ourselves...‘When I’m 30, I’ll make more and it’ll be easier.’ It’s not easier.” – Aaron (05:58)
• On investing consistency:
  • “To be a good investor, you get to be lazy.” – Brian (11:01)
  • “Put the blinders on...hang in there, you don’t bail.” – Aaron (13:26–13:39)
• On happiness:
  • “If you think money is [the driver], you’re going to find that you get to the top...and it’s emptier than you realize.” – Brian (28:36)
  • “If you’re not hiking the mountains at 30 and 40, you’re not going to be doing it at 60.” – Aaron (29:01)

Timestamps for Important Segments

• Retirement Anxiety & Stats: 00:30–01:59
• Value of Time, Starting Early: 02:22–03:53
• Consistency & Automating Investments: 03:53–04:51
• Saving Early vs. Catching Up Late: 04:39–05:58
• Minimizing Friction/Pay Raises: 06:15–07:33
• Wealth Multiplier Explained: 08:23–09:21
• Staying Invested—S&P 500 Study: 09:49–11:41
• Behavior Over Headlines: 16:14–17:39
• Tax Bucket Strategy: 20:28–21:59
• Index & Target Date Funds: 22:49–25:16
• PUSH Principle (Purpose, Use, Social, Health): 25:48–27:15
• Aaron’s Health Story: 31:29–32:19
• Getting Help/Resources: 32:49–33:22

Summary & Takeaways

The earlier and more consistently you invest, the greater your wealth—and your options for life. Focus on what you can control: your saving, spending, and investing habits. Automate good behavior, optimize for taxes, and don’t let fear or headlines steer you off course. Most of all, never forget: Money is a tool for fulfilling your purpose, forging relationships, and sustaining your health. Invest in life now—real wealth is about how you live, not just your net worth.

For more tools mentioned in the show, visit moneyguy.com/resources.

Guest Aaron can be found on YouTube as "Aaron Talks Money."