The Stacking Benjamins Show:

"Does The American Dream REALLY Cost $5 Million?" (SB1741)

Release Date: September 29, 2025
Hosts: Joe Saul-Sehy, OG, Doug

Overview

In this episode, Joe, OG, and Doug tackle the recent USA Today and Investopedia headline claiming that achieving the classic American Dream now costs a shocking $5 million. They dive deep into the breakdown of that figure, challenge its assumptions, and offer practical, approachable advice for average families feeling daunted by such a massive number. The conversation’s signature friendly, light-handed banter keeps the mood upbeat while delivering actionable financial insights. The crew also responds to a listener asking why fiduciary advisors give different advice and discusses how to guide young adults in investing.

Key Discussion Points & Insights

1. Is the American Dream Really $5 Million?

• [08:54] Headline Breakdown:
  The team reviews USA Today's claim that the American Dream costs $5 million, with components like:

  • Retirement: $1.6 million
  • Owning a house: $957,000
  • Raising two kids with college: $876,000
  • Owning a new car: $900,000
  • Healthcare: $414,000
  • Yearly vacations, pets, and weddings (all add up)

  "The American Dream now costs five million dollars. I was just talking to my mom, and she said apparently she'll leave me five million. So I'm golden, baby." — OG [09:29]

• Critique of the Numbers:
  The hosts point out that these estimates use a lot of lifestyle inflation and 'average' (often high) assumptions, such as always buying new cars or sending two kids to private colleges. They emphasize that the dream can be tailored to personal values and doesn't need to duplicate every line item.

  “We're using a bunch of averages. And we're also doing something I think—that especially in the personal finance community—we don't like, which is just spending lavishly on everything instead of just those things that we really care about.” — OG [10:19]

2. Digging Deeper: Specific Line Items

Retirement ($1.6M)

• This is a headline-maker itself, but, as the hosts stress, with Social Security and compounding, it’s more achievable than it sounds.

  “For a lot of people, you also have a little bit of Social Security... now we're in the ballpark of $120,000, $130,000 [a year]. That's a pretty respectable lifetime income, honestly.” — Joe [11:51]

Cars ($900K)

• The team ridicules the idea that everyone must buy a new car every 10 years and finance it. Doug and OG crunch numbers showing that buying used and owning longer can halve the total spend.

  "Cut from $900,000 to $446,000. We cut that number in half by keeping your car longer and buying used. That small change can have a huge impact." — OG [16:00]

College ($876K for two kids)

• They stress that there are many ways to reduce this:

  • Use AP credits and community college to reduce time and cost.
  • Not all kids need college; other paths (like trades) are valid.
  • Think strategically before junior year of high school.

  "I've got a really simple way of how to cut college costs: Just have one kid." — Joe [20:00]

Vacations & Weddings

• There’s room to economize on events like weddings and vacationing, but the hosts encourage keeping funds for joy and experiences—within reason.

Healthcare ($414K)

• The show highlights the importance of questioning bills, using HSAs, seeking generic medicines, and price-shopping.

  “Always question the bill. Even if your insurance pays for it, push back. There've been times I've saved a fortune just by asking for the generic or calling the pharmacy.” — Joe [25:54]

3. The Power of Small Changes & Compounding

• Many of the figures cited can be changed with small, intentional shifts.

• Compound interest does a heavy lift—no one "saves" $5M out-of-pocket; they invest and let time work for them.

  "You might spend $1.6 million in retirement, but you don't save $1.6 million. You save $400,000, and compounding adds the rest." — OG [27:25]

4. Listener Question: Why Do Fiduciaries Give Different Advice? ([39:59])

• Question from John: Why do fiduciaries propose different plans if they’re all supposed to act in your best interest?

• Hosts' Take:

  • "Fiduciary" status isn't always consistent, and the term gets misused/regulation is murky.
  • Product choice (like funds), compensation structure, and approach vary widely.
  • Focus on the planning process, not just investment management.
  • Look for someone who starts with your goals and full financial picture, not just portfolio structure.

  “The word [fiduciary] is completely useless anyway because nobody knows how to use it correctly... More important is whether their process and recommendations map to your needs and values.” — Joe [42:41]

5. Guiding 18-Year-Olds on Investing ([49:48])

• Community segment on helping late teens/young adults start investing.

• Advice includes:

  • Automating a savings percentage (e.g. 15%)
  • Using accessible platforms (M1, Acorns for habits, but also regular brokerage for learning)
  • The most important thing is involvement, parental guidance, and education, not the specific app or account chosen.

  “The piece I like best isn't what you choose. The piece I like best is that you're spending time with your kid teaching them.” — OG [52:36]

Notable Quotes & Memorable Moments

• Reducing Car Expenses:
  “If you just keep your car another 2.6 years and buy used, you cut the $900,000 car line almost in half.” — OG [16:00]
• On Saving for Big Numbers:
  “I know it seems impossible—$5 million! But if you graduate college at 22, it’s $800 a month until you’re 65 and the market does the rest.” — OG [30:42]
• On Advisor Shopping and the Fiduciary Label:
  “You can say whatever you want. There's no crime against [calling yourself a fiduciary]. That's why that word is so useless. It's ridiculous.” — Joe [42:41]
• Practical Healthcare Negotiation:
  “My medicine went from $1,800 a month to $150 just by the doctor calling to ask about discounts. Just ask. You never know.” — Joe [25:31]

Important Segment Timestamps

• [08:54] Main Headline – Breaking Down the $5M American Dream
• [11:38] Retirement & Social Security Discussion
• [13:19] The Car Calculation Deep Dive
• [19:27] College Cost Hacks & Planning
• [24:27] Healthcare Cost Strategies
• [27:25] How Compounding Makes the Goal Possible
• [39:59] Listener Voicemail: Why Advisors Differ
• [49:48] Community Roundtable: Advice for 18-Year-Old Investors

Key Takeaways for Listeners

• The $5 million “cost” of the American Dream is only a scare headline if you adopt every expensive assumption—personalize and prioritize!
• Focus on value-based spending: Cut big costs you don’t care about; preserve what brings you joy.
• Compounding and planning are your secret weapons; no one is “saving” $5 million by hand.
• When searching for a financial advisor, look for true planning expertise and alignment—don’t fixate on the marketing buzzwords.
• Help the next generation start early, automate, and learn the why of investing, not just the how.

In the hosts’ classic optimistic style:

"You don't have to do 50% better, just 10% better. It's your American Dream—make it your own." — OG [53:48]

For more resources, referenced articles, and further discussion, visit stackingbenjamins.com or join their Facebook Basement community.