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How to Retire Early: The Latte Factor

Lesson 16 of 18

Retirement Accounts and Investments


How to Retire Early: The Latte Factor

Lesson 16 of 18

Retirement Accounts and Investments


Lesson Info

Retirement Accounts and Investments

retirement accounts. Let's go through some turnkey solutions for you. How could you make that investment pyramid without figure it all out yourself? You could buy what's called a target date. Mutual fund, Most 41 K plans today offer a four offer a mutual fund or ah, trunk E solution where you say I'm retiring in 2030 and it does it all for you. Sometimes it referred to his ass allocation funds sometimes referred to as a balance fund that can usually be 60% stock and 40% bonds. Basically takes the investment pyramid and does it for you. And you're gonna have simplified what I call e t F Solutions. All those robo advisors I showed you Everybody today is gonna turn key. Dropped the money in its diverse thought among mutual funds. Index is done for you automatically. This is everybody lays out what's my favorite mutual fund. Now, remember, full legal disclosure past performance does not equal future performance. Do not by any investment without reading reading the prospectus and I am not g...

iving you a specific investment recommendation. Did we all hear me on that? OK, but this is a fun that I love a lot. Why do I love it so much? It's consulted when the automatic familiar book. Because Vanguard's one of largest investment coming in the world. Probably the largest investor coming down the world. They run a asset allocation fund with all of their research that takes 11 Vanguard funds and diversifies it, automatically using all of their research of institutional knowledge into one fund. And since 1985 this was the only thing. A year ago, the average return was 9.4%. Super boring, super boring. Guess what I put in my wife's set. Fire A when she opened it up. Vanguard Star Fun. This is so the symbol in the Vanguard Star Fund was V G S T X. This just shows you the different funds that are in the Vanguard Start fund. They're all Vanguard funds, $18.7 billion in that as of 2016. So that's a simple solution. You got a real estate job. You're busy. Real estate you open upset by Ray. Put into one fund like that. It's fine. You can just leave alone. Super boring. Boring is good. These are the three biggest target date of mutual. One company is basically in the world. That's what's inside most four on Cape Lands. Didn T. Rowe Price, Fidelity or Vanguard? They've all got turnkey solutions for your 41 K plans today. It would be unheard of today. Have a 41 K plan that does not offer target date mutual fund. You will do better in a target date Mutual fund. In my opinion that you will do investing on your round, figuring out how much to put in each one of us led sleeves. It's rebounds for you. It gets more conservative as you get older. I'm not gonna spend a lot of time on this right now. But what I said and start late finish rich is that the perfect way to invest money is 1/3 stock third guaranteed investments. This was all the bonds and 1/3 real estate. Which leaves me with your homework. Are you in enrolled in your 41 K plan? Can you increase it? Is there a match? How much do you need to put in to get your match? Do they have target date mutual funds? If they do, are you using the right one and the last thing Do they have financial planning services? A lot of these companies today actually have a company that provides financial planning services with the 41 K plan. See if they've got one of the biggest ones is financial engines. But most 41 K plans today are now offering a form of financial advice.

Class Description


  • Create financial freedom starting with as little as $5 a day
  • Learn how to earn 10% rates of return of your money
  • Understand the automatic millionaire habit that changes everything
  • Retire early or transition early to a life you dream of
  • Understand the FIRE movement and how to apply it to your financial future
  • Know how to become rich faster, as a freelancer or a small business owner
  • Use the Automatic Millionaire pyramid system to double your money in 10 years or less
  • Know which companies, apps and investments today are making managing your money easier and cheaper


What if you didn’t need to be rich to live rich? What if there were a way you could achieve financial independence and live your dreams now?

In less than five hours – The Latte Factor Class can help you take control over your money and your life. Whether you’re just starting out in business, an employee, or you’re in debt and you just want to live the life you’ve always dreamed of, “The Latte Factor” is a one day program that has inspired millions.

David Bach is the Author of The Latte Factor and the creator of The Latte Factor Method. He’s also a nine-time New York Times bestselling author of books including Start Late, Finish Rich and The Automatic Millionaire. In How to Retire Early: The Latte Factor, David Bach will teach you why you are richer than you think. He’ll help you see a future that puts you in control over your finances and back in the driver's seat of your dreams.

It’s never too late to start living your dreams; today is your starting point. Whether you are living paycheck to paycheck, or simply want to increase your net worth, this class is for you if you’re ready for a fresh outlook on life and money.


  • Anyone who wants to stop living paycheck to paycheck
  • Freelancers
  • Small business owners
  • People who want to live their dream life


David Bach is one of America’s favorite financial experts and bestselling financial authors of our time. He has taught millions to live and finish rich through his seminars, live events, courses and books. He’s the author of 9 New York Times best sellers, with over 7 million books in print in over 19 languages - including Smart Women Finish Rich, Smart Couples Finish Rich, and The Automatic Millionaire. He’s a media favorite having made thousands of appearances the past twenty years, including on Oprah six times and the Today Show over 100 times. David is the co-founder of AE Wealth Management and Director of Investor Education. His latest book is The Latte Factor: Why You Don’t Need To Be Rich To Live Rich. David presents seminars for and delivers keynote addresses to the world’s leading financial service firms, Fortune 500 companies, universities, and national conferences.


  1. Class Introduction

    You don’t need to work five side hustles for the next decades to achieve early retirement. You don’t need to live paycheck to paycheck for the rest of your life. Meet David Bach and learn how small amounts of money can change your life. David shares his personal finance story starting from age 7.

  2. My Start in Investing and Teaching

    What did David’s first “financial advisor” teach him? Why is it so critical that women in particular begin their retirement planning now? David shares his investment history what you’ll learn in his book, The Latte Factor: Why You Don’t Need To Be Rich To Live Rich is about.

  3. Financial Education - Know Better To Do Better

    In this lesson, David paints a picture of the dire necessity of financial education for Americans. Learn about the mindset necessary for a happy retirement, how companies force employees out of work in their 50s, what rich people now that poor people don’t and how credit card companies prey on consumers. David lays out exactly what you will learn in this class.

  4. Start Early, Start Today

    Early retirees don’t all start with six or seven digit annual incomes -- most started saving and investing early. David shares a comparison of how early planning can immensely impact your retirement savings.

  5. The Latte Factor: How It Works

    What exactly is the latte factor and how can you find yours? In this class, David breaks down the latte factor math and shows you how to save money by cutting out small non essential living expenses and developing a daily mindset geared toward retirement. He also shares his pick of online resources and apps that aid in financial planning and investing.

  6. Student Success Story

    Hear directly from Elizabeth, a member of David’s inside team regarding her financial planning journey over the past 18 months.

  7. FITE - Financial Independence to Transition Early

    Learn about the FIRE movement and David’s take on transitioning vs retiring. David reviews how to plan backwards from your desired retirement age, introduces the 50/20 formula and shows the effect of turbocharging your income stream.

  8. Common Investment Mistakes

    Don’t make these common investment mistakes that won’t yield extra income. David gives advice on buying a car.

  9. Becoming Rich on an Ordinary Income

    You don’t need that much money to become rich or build up a nest egg. David shares research from Fidelity Investments that shows the concrete steps to take to become a millionaire through 401k investments.

  10. How Much do You Need to Retire

    How much should you save and invest or, as David says, pay yourself? See what you should be saving at 30, 35, 40, 45, etc.

  11. Retirement Plans & Where to start

    David orients you to the different types of retirement accounts available, highlighting their benefits depending on your needs. Learn the difference between a traditional vs. Roth IRA, spousal IRA, SEP IRA, 401k and solo 401k plan. What is recommended if you’re self-employed? What if you have employees? David answers your questions and points to brokerages, roboadvisors and apps where you can start.

  12. How to Earn 10%

    There’s a lot of talk about earning a 10% return on your investments -- how do you actually do it? David teaches you the rule of 72, a quick way to calculate how long it takes to double your money when calculations and retirement calculators aren’t at hand. David takes audience questions, addressing financial planning in relationships, investing while in debt, and his advice for self-employment.

  13. Investment Pyramid

    The opportunities for investment can seem overwhelming and intimidating; David presents an “investment pyramid”, displaying all investment options from low to high risk. Learn what makes a diversified portfolio and what David himself invests in. Lastly, David cautions against the high-risk investment zone and which investments to stay away from.

  14. Reasons Most Investments Fail

    In this lesson, David shares the top 4 reasons most investors fail; learn what not to do. See a historical representation of an investment from 1926 through today and learn why the stock market will always favor a “boring” investor.

  15. 5 Things to do During Market Correction

    Market corrections are normal and happen throughout history. David advises on what to do on your own or with your financial planner or advisor.

  16. Retirement Accounts and Investments

    What are target dated mutual funds, asset allocation funds, balanced funds and simplified ETF solutions? Why are they ideal investments? Which Vanguard fund does David recommend? David gives you homework in this class: crucial questions to ask yourself and actions regarding your 401k.

  17. Renting vs Home Ownership

    Why is real estate one of the best investments you can make in your future? David shares benefits and advice regarding mortgages, payment plans, bubble-proofing your real estate and how to become an automatic millionaire homeowner.

  18. Why Your Dreams Matter

    David closes, returning to the point of financial freedom: to live your dreams. He gives advice on different investments to consider depending on your time frame and how to plan a sabbatical. He ends the class with your final coursework: finding your latte factor and putting steps into place to start paying yourself first.


Ling Fan

Great class! Concise and powerful! Wish I knew this 10 years ago.

Kennie Johnson

Very helpful and inspiring

Carlos Figueiredo

I thoroughly enjoyed the course love it!