The Power of Compound Interest - Let It Work For You!

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  • Опубліковано 14 лис 2024

КОМЕНТАРІ • 80

  • @PaulGosselinsr
    @PaulGosselinsr 3 місяці тому +21

    It’s never too late! I was broke and in a ton of debt at 50. I’m now 62 with no debt (paid my mortgage) with a few hundred k in my accounts. I also retired this year! Get started and don’t look back!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +5

      Hey Paul. Thank you for sharing your story. Now THAT is what I'm talking about! Very inspiring stuff, and like you said, it is NEVER too late. If we are breathing, it is not too late.
      I hope other people, all ages, follow a path similar to yours! That is why I made this channel.

  • @richardm.441
    @richardm.441 3 місяці тому +15

    Love your videos. 48yo 5.2 mil net worth, and driving 2013 corolla. Biggest positions VOO, VTI, SCHD.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +2

      That is incredible Richard. Thanks for sharing. I love that you drive that car with that net worth. Clearly you have cracked the code (: And your holdings are rock solid. It's nice being financially free! Soooo much better than a new car every couple years.

    • @Joey-ee7wp
      @Joey-ee7wp 3 місяці тому +2

      I drive a nissan Versa 😂😂😂😂

    • @Joey-ee7wp
      @Joey-ee7wp 3 місяці тому

      @@richardm.441 my friend who is a deca millionaire drives a Toyota Camry.

  • @МайраАжгалиева
    @МайраАжгалиева 3 місяці тому +1

    I from in Kazakhstan, I’m starting with my sun finance journey, listening and learning, your content very informative! Very thanks 🙏
    We starting with Voo , vgt ,qqqm,schd,smh,schg

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Thank you for listening from Kazakhstan! It's so cool how UA-cam can help us connect all over the world. I appreciate you taking the time to watch the videos and I'm glad to have you here.

  • @rolandosouffrain7957
    @rolandosouffrain7957 3 місяці тому +4

    Wow. Double every 7 year. I just learned something new. I will be a liquid millionaire in less than 7 years. Thanks. I thought it would take me 12 years. I will definitely be ready to retire at 60 years old. 🎉🎉🎉🎉

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Hey Rolando. I hope the market performs to its historical average in the next 7 years. Sometimes it beats it, sometimes it falls short. But over time, it averages out to 10 or 11%.

  • @WilliamFluery
    @WilliamFluery 3 місяці тому +6

    I have a 2000 GMC Yukon - I paid $9,000 for a new engine, a rebuild of the front steering, suspension and rear suspension. I have 257,000 miles and drive maybe 6,000 miles a year. I told my wife to have the cemetery dig my hole deeper, wider and longer so it can also serve as my coffin.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Not exactly what I had in mind for compound, haha. But I love the creative comment and I wish you luck (:

  • @andresalisuagjr1722
    @andresalisuagjr1722 3 місяці тому +2

    Jeff - Your videos are very informative and persuasive. Getting started early and keeping focused on everybody's goal to have a comfortable retirement should be on everyone's mind. I am a retired professional, born and raised outside of the US, but living quite comfortably in my retirement years. Growing up from a big family, we had to live frugally. Living honestly, spiritually and within your means is how I and my wife conducted our lives for decades. My US born wife have actually adapted to our frugal life, like driving a 2006 car, now with 65K miles. With so many outlets for financial news and useful advise (like yours) there is not reason for any person not to be financially literate. I hope that you will continue to produce very useful vlogs like this one.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Thank you for the kind words Andres. It really does mean a lot. I'm here to try to guide as many people as possible towards financial freedom. It is a simple system, but it is so hard to get started. Once people create an investing system and live within their means the path gets clearer and brighter.

  • @loakland2773
    @loakland2773 3 місяці тому +1

    ThanX Jeff.... Great stuff.... Yes, start early - if you can.... and let your money work hard for you..... Consistency and diligence are keys to getting there.... It truly depends on ones focus.... In our younger years - we did not think about it that much.. There's always "tomorrow" but then viola - Tomorrow is here.... I truly believe that the youth of today are much more wise than of my day and that education for finance is bountiful out there on the secondary market like UA-cam brokerage firms etc whereas I feel that schools have dropped the ball in teaching practicality such as taxes, finance, stocks etc and what to do in life.... More focus should be put on that vs some of the "new" elected subjects they have opted for. All the best to you. Looking forward to next week's video lesson.... Thank you for all of your hard work putting these things together for all of us.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +2

      Thanks Lance. I agree 100% that schools do not teach this stuff well (if at all). Shoot, I have a master's degree in accounting and I learned zero about personal finance. It's a little scary. It is also why I'm here to help. Hopefully I'll be making these videos for years to come. Thanks for your support!

  • @billyjohnson9166
    @billyjohnson9166 3 місяці тому +3

    Good morning, compound interest is a gift from God. Charlie munger was the best. Now can you teach my daughter. Household income of over $200,000 but can't save money. Sad

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +5

      Hey Billy. Charlie was the best. A genius that didn't get hung up on BS, and was hilarious. It is sad to see high earners spending what they make to maintain a 'high-end' lifestyle. A few small adjustments can make a huge difference for your daughter over time. She can still do most of the fun & wasteful things *after* the savings and investing comes out. Making it a required bill is my favorite way to look at it.

  • @kev13nyc
    @kev13nyc 3 місяці тому +1

    keep pumping out those financial informational videos Jeff!!!!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Will do Kevin. Thanks for watching and commenting.

  • @CraigandMandy1
    @CraigandMandy1 3 місяці тому +2

    Nice job Teeps! Now to get the friends and family to listen.. 🤦🏻‍♂️

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Haha, exactly! That has been my goal for a long time (the friends and family part). Thanks for watching. We’ll have to keep working at getting others interested. This isn’t the most exciting stuff for some people. BUT, financial freedom sure is exciting. Everyone loves having the ultimate resource freed up; time.

  • @TheOriginalTucriah
    @TheOriginalTucriah 3 місяці тому +4

    The best time to invest was a long time ago. The second best is right now.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Amen!
      “Someone's sitting in the shade today because someone planted a tree a long time ago” -Warren Buffett

  • @upperman17
    @upperman17 3 місяці тому +3

    I drive an 2005 V6 Accord. Wife has a 2013 Honda Odyssey. I get asked all the time why. I invest to retire fully at 55 for both me and wife

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Heck yeah Daman. That is music to my ears. I've had a lot of people mention that I will not get to 'rub elbows' with the right people without a fancy car. I usually politely laugh, but it is hard for me to contain myself sometimes (:

  • @SoumyaDutta-rg3we
    @SoumyaDutta-rg3we 3 місяці тому +1

    Hey Jeff, Great video and nice and simple explanation ! Your videos make me interested to learn more about stocks and ETFs(part of FY24 goal ). If you create a video on technical analysis in the future , it'd be great

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Thank you for the kind words Sounya. I appreciate you taking the time to watch the videos and for being a channel member! I need to make a video about the core key metrics I research when making decisions about stocks or ETFs.
      I throw that on the list. In fact, I’ll mix that in my monthly updates on my individual stock portfolio (that has outperformed by quite a bit).

  • @royvillagran638
    @royvillagran638 3 місяці тому +2

    As usual, Jeff shows the path starts with the first step. Getting started is the first step. Create a goal with incremental steps to achieving the goal is step two through investing in a basic S&P low cost ETF. Over time add to your % and live your best life. Compounding interest does the work for you. There are no secrets but to stay the course and Jeff is great at helping us do just that. Thanks Jeff!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Thanks Roy. Compound interest seems too good to be true. I think that is why it is hard to get started with investing. If someone only has $100, it is easy to think 'who cares if it doubles in 7 years, still only $200'. The growth is so backloaded, but if we realize that $100 is more like $2,000 in the future, they we get a bit more interested (:

  • @slammer6789
    @slammer6789 3 місяці тому +4

    Start that tree growing. My kids are tired of me telling them about compounding, but i know they are starting much earlier than I did.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      For sure. I'll never forget the first time I understood compound interest (college days, I was a late bloomer). It absolutely blew my mind. I've always been good at math, but I thought to myself, there is *NO WAY* it can grow like that. Feels fake.
      I want to drop these videos out there to have some timeless nuggets for all level of investors. I'm also excited to get into the weeds a little more soon too (update on best growth ETFs mid-year, same with dividend ETFs, ETF reviews, and portfolio updates).

  • @nickscheraldi5867
    @nickscheraldi5867 3 місяці тому +2

    Great reminder to stay the course! Thank you for sharing your story - we've all been there. I wish I had learned early on to avoid debt but thankfully I'm able to invest a generous amount at this point in life. Let's grow!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      No doubt Nick. Very few of us have this stuff ironed out as youngsters (definitely not me). But we can all learn and grow. Brick by brick we'll get this thing built. I know it is cliche, but the hardest part really is just getting started. It doesn't feel like a good system 'does anything' for such a long time. Many give up early (first market down turn) because it feels like a waste of time. We just need to stay the course!

  • @marcusalexander6677
    @marcusalexander6677 3 місяці тому +2

    Hey Jeff
    Everyone now talking about market rotation and small caps rising from fed cuts, any ideas or suggestions about small cap etfs?
    And what do you think about VBR?
    Thanks

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Hey Marcus. I do think we will see a reversion to the mean favoring small caps eventually. I do not know exactly when it will happen (it has been happening, but there is still a ways to go after the major large cap run for years now), but it will happen.
      I don't invest in a lot of small caps. VBR is a solid ETF. I think AVUV is slightly better due to considering other factors such as profitability and low debt (in addition to value and market cap). Full disclosure is that I don't invest in either one.

  • @iangann9828
    @iangann9828 3 місяці тому +1

    Jeff, have you considered doing a video analyzing any portfolios that use LETFs? It doesn’t seem like there’s a lot of analysis on when/if these are useful tools, especially when long.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +2

      Hey Ian. I don't mean to sound like all of the old school investors, but I'm not high on leveraged ETFs personally. This massive and unique bull run has been very dangerous for newer investors that see the crazy positive results of leveraged ETFs.
      Remember, a x3 means that -10% becomes -30%. The negatives are a lot more impactful than the positives when it comes to gains / losses over time.
      For example, if we lose 50% of $100, we have $50. If it increase by 50% after that we have $75. It needs to go up by 100% to get back to $100.
      Leveraged stuff is that on steroids. We have mostly only seen the 'up scenarios' in the past decade and change.

  • @ColinR92
    @ColinR92 3 місяці тому +1

    Hey Jeff, Nice video
    I like how you mentioned that starting with a large number invested already obviously makes the compounding happen at a much faster rate. A lot of videos I watch I get annoyed because they take say a 100,000 dollar investment and then do a projection of what it will turn into over time. Not every has that amount to start off with.
    I have a 2023 Honda Civic Touring
    Had a ‘22 Sport but traded it in.
    Definitely happy with upgrade

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Hey Colin. Thanks for watching and commenting. I try to throw in both scenarios to show how the compounding works. It is tempting to give up before we start, but we gotta start somewhere! The sooner the better for sure with this stuff. The beauty is that eventually we have a large growing balance *and* new dollars following in and working for us.
      PS: I love Honda Civics. My two cars I've owned were a 99 and 2013 Civic.

  • @orangewill
    @orangewill 3 місяці тому +2

    Love it Jeff - keepin’ me motivated today

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Thanks William. I appreciate you taking the time to watch the video and for leaving a comment. This compound stuff is crazy. It will never 'feel real' to me. But it is (:

  • @user-briannahui27
    @user-briannahui27 3 місяці тому +1

    Thanks!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Hey Brianna. I'm out of words at this point (: Thank you so much for your support of the channel.

    • @user-briannahui27
      @user-briannahui27 3 місяці тому +1

      @@JeffTeeples you are the best, forget the rest!!!

  • @ZaideZaide770
    @ZaideZaide770 3 місяці тому +3

    Great video and thanks for sharing your journey....Pebbles make a mountain.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Thank you for watching and for the positive feedback. Pebbles make a mountain... I like that! I'm definitely going to steal that one (:

  • @Switch180fpv
    @Switch180fpv 3 місяці тому +1

    Stay the course 😉

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Haha, absolutely. We make this stuff more complicated than it is. 90% of the battle is starting and staying the course.

  • @jasonwise078
    @jasonwise078 3 місяці тому +1

    Great video. really keeps us stuffing $$ in the accts.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Love it Jason. Keep stashing it away and letting compound work its magic. It takes awhile to ramp up, but it is worth it.

  • @oldrin1876
    @oldrin1876 3 місяці тому +2

    Great video, good to keep things in perspective.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Hey Oldrin. Thanks for watching and commenting. These boring basics make a huge difference over time. The toughest part is to start somewhere and not worry about it seemingly 'taking forever' to build serious wealth. Zoom out and stay the course to see the numbers get eye-popping.

    • @oldrin1876
      @oldrin1876 3 місяці тому +1

      @@JeffTeeples Absolutely agree, I am really at the beginning of my journey sadly only 4 years in. What you and your wife have done in 14 years is amazing so happy for you both.

  • @mr_compton3019
    @mr_compton3019 3 місяці тому +1

    I wish my portfolio can grow as fast as your goatee 😂

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Rofl, love it. I don’t know if ANY portfolio could grow like that (:

  • @stephenlandrum7770
    @stephenlandrum7770 3 місяці тому +1

    Great video Jeff!!!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Thanks Stephen. I appreciate you taking the time to watch the video. I know videos like this aren't as exciting as breaking down the best ETFs, but, the importance is too great to ignore.

  • @Anthony092100
    @Anthony092100 3 місяці тому +1

    Thanks .... good video!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Thanks Anthony. I appreciate you taking the time to watch the video & leaving a positive comment.

  • @mervynman6303
    @mervynman6303 3 місяці тому +1

    Hi Jeff and watchers. what do you think about this 4% market drop in 2 days? Is it because the market is too overvalued, so stocks drop so bad just from some unemployment or earning news? It is a fastest drop since I started to invest in early 2023, very unpleasant feeling

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Hey Mervyn. Thank you for watching and for the question. A lot goes into it, but I think the main culprit is the market slowly getting overvalued in the past few months. In the short term the market will fluctuate up and down based on investor sentiment. In the long run, it will follow earnings (over many years/decades when we zoom out).
      I feel great about 'the market' as long as the companies (or ETFs) we invest in have strong earning trends. Over many decades, the prices will follow net earnings within about 0.5%. Nobody, myself included, can explain all the short-term noise.
      Build a system that works for your and be a buyer in all markets (in your accumulation years). Stay the course and win this simple game in the long run.

    • @mervynman6303
      @mervynman6303 3 місяці тому +1

      @@JeffTeeples Thank you Sir for such a detailed explanation. I am sure a lot of people got very worried today

  • @HunterM09
    @HunterM09 2 місяці тому +1

    What are your thoughts on a dividend FIRE portfolio of only SCHD/DGRO 50/50? For reference, I am 26 will be graduated in 2026 (so 28) and plan to be “retired” after 10-15 years. Lets say my wife and I collectively make $300k after tax, and plan to invest $15k per month. Also, would you consider adding something like QQQM as maybe 10-20% in the portfolio? Thank you!

    • @HunterM09
      @HunterM09 2 місяці тому +1

      Also should mention I plan to buy into JEPQ/JEPI once closer to my early retirement age!

    • @JeffTeeples
      @JeffTeeples  2 місяці тому

      Hey Hunter. I think the SCHD/DGRO mix has close to 100% chance of getting you to where you want to be in your scenario with your goals. They are both amazing dividend growers, so you will have a very high 'yield on cost' in the future.
      I think adding QQQM to the mix is likely the best move. You are a bit low on tech between SCHD and DGRO with a weighted ~13.5% for that sector. I think tech will be a bumpy ride as always, but it will continue to be a successful sector moving to the future. I don't know specifically what the next big thing is, like AI for example, but 'tech' seems to produce it over the past 40 years.
      A 40/40/20 mix would be nice. If tech takes off and your QQQM gets to 22%, be sure to buy SCHD and DGRO. If tech crashes and it becomes 16% of your portfolio, put your new contributions into tech. Investing to your target allocations will make it impossible to not buy the relative dip.
      Stay the course and you'll get there. You have a great game plan and it doesn't matter if you are 'supposed to invest in growth' at your age. Making a plan and sticking to it will always work (assuming the plan is reasonable of course) better than going with our guts.

    • @JeffTeeples
      @JeffTeeples  2 місяці тому

      I plan to use JEPQ to cover some bills as well. SCHD and DGRO are 'better' if we have the yield needed to get by. But JEPQ is a nice crutch to get us there (: I'm 42 and I have JEPQ now. But I also quit my six figure job to start this channel. I would wait until retirement to buy JEPQ if I still make a lot of money. Load up on the dividend growers while you are young.

  • @Theweightlossdietitian
    @Theweightlossdietitian 3 місяці тому +1

    Now a millionaire doesn’t mean what it used to Jeff. Getting to a million doesn’t mean being very wealthy anymore or being able to retire for many individuals due to inflation and cost of living. It’s nothing to sneeze at, but getting to at least 5 million is a better first marker particularly if you are using about the 4-5% rule for retirement for example. If you have kids, need to put them through college, live in the northeast etc, you can’t live well on 50k per year (5% rule). I know you weren’t speaking about retirement specifically, but just a few thoughts. What do u think?

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +4

      I agree. Inflation is always eating away at the purchasing power of specific nominal dollar amounts. However, we have to get to $100 before $1,000, before $10,000, before $100,000, etc.
      The first $1 invested is by far the biggest step in all of it. Just the process of investing money (automatic deposits) trumps all of the compounded future balances.
      $1,000,000 is still an incredible hurdle to clear. If we can get there, then $5 or $10 million will be much easier steps.

  • @jeffaragon
    @jeffaragon 3 місяці тому +2

    Thats why i dont give people a specific number i tell people to chose a %of their income. When they first start. For example 3 % of 1k is only 30$ if paid bi weekly thats 60$ a month. But if they dont make 1k every check then to say invest 60$ a month can be to much but that 3% is more manageable for example if your check is short for whatever reason hours cut etc and your check is 800$ instead of that 1k that 3% stays the same and keeps them consistent because 3% of 800$ is 24$. In this case and mindset development a person doesnt have to feel intimidated when there income isnt what they expected. 3% is 3% that doesnt change but the amount can change significantly everytime. Because hey you can have 2k paycheck 3% only 60$ and they can still spend how they want 😂

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      That is a great way to go about it Jeff. I like doing the same method to help people 'make it a bill'. Live and have fun with the rest while also building for the future.
      Then raises can be put directly to a new % as they grow more money (3% to 4% to 5% etc to 20%). If we tried to go from 3% to 20% they would say NO WAY (:

  • @longbowrider
    @longbowrider 3 місяці тому +2

    Well done!

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Thanks Druski! I will be getting into more specific ETF nerdy videos in the near future. I like to get a few of these 'general investing' videos out there. They are technically the most important (but not quite as exciting) videos for building wealth.

    • @longbowrider
      @longbowrider 3 місяці тому +1

      @@JeffTeeples Thanks! I liked your old episode where you explained the fees that brokers charge. It's still current. Down the road can you do it again with the latest data?

    • @JeffTeeples
      @JeffTeeples  3 місяці тому

      Those numbers are still accurate. I think I should make an updated video with that information again. I'll put that in my notes.
      The fees will vary depending on the broker / financial advisor / ETF / mutual fund in question. But it still 'works the same' as far as the negative impact on our portfolio.

  • @criminalelement494
    @criminalelement494 3 місяці тому +1

    Does the 100K need to be in one ETF/Stock or spread out across them?

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      The 'average returns' I mentioned that have been 11% over the past 50 years is a single ETF that tracks the S&P 500. My favorite is ticker symbol VOO, but there are a variety of ETFs and index funds that track the S&P 500 index.
      It is 500 of the largest companies in the US. It's great because you buy one thing and it automatically updates for you. Companies go bankrupt and drop out, and new companies rise through the ranks to make it to the 500 index.
      All you have to do is buy one single ticker to get in on all of the action passively.

  • @pianojo6
    @pianojo6 3 місяці тому +1

    Great video Jeff! Love your videos! Thank you so much for making the videos! I know how much effort it is to make a video, because I was a UA-camr, too. But I don't think my channel ( www.youtube.com/@naturalhealthremedy6 ) has the potential to grow, so I am kind of quitting that. Now I am trying other things. I am a nurse, but I am currently not working trying to see if I can try any new business ideas or side hustles.

    • @JeffTeeples
      @JeffTeeples  3 місяці тому +1

      Hey Jane. I appreciate your kind words and support of the channel.
      I see you have over 1k subscribers! It can take a very long time to get the channel off the ground. But, especially as a nurse (much like me having years of experience in accounting and finance, the education, and, most importantly, the desire to continue learning and evolving), I think you would make it long-term.
      I'm still a rookie on UA-cam, but I can say I've already learned to speak with more energy. That was my flaw (I was like a Mr. serious robot, lol).
      I'm not saying you 'should' continue UA-cam if you don't want to, but I also wouldn't give up if the desire is still there. Eventually you may be a leader in specific health videos (you practice what you preach and have the education) that people use for diets, working out, and feeling / looking good.
      I don't fully understand your niche, but it 'may' make sense to separate the two types of videos you make. Or, to see what works best and double down there (ASMR or health stuff).
      Let me know what new businesses or side hustles you work on. I'm always interested to see what people do (:

    • @pianojo6
      @pianojo6 3 місяці тому +1

      @@JeffTeeples Thank you so much Jeff for your encouraging words. Really appreciate that. Lol. That's true it's better to have only one type of videos.
      I am trying out blogging and affiliate marketing using blogs for now, but it might take awhile to see the results. I guess we'll see if it works or not lol. I just want to give it a try. I also enjoy cooking, so I might make a recipe blog, too.
      Thank you again for all you do! You are so nice and helpful :)