@@abish83 I personally only started stock 3 years ago and I am young, as my family didn't understand how it worked, I taught myself. But I made on average around 76% return weighted this year. I have multiple stocks that I have sold over 100% return in under three months. I can help you, but most I try to help. They one doesn't listen, two, I will talk about a company, and they think that's risky and go put into unknown Crypto coin. They don't sell when I tell them, they are overgreedy or not patient. I do have a gut feeling and I have not been wrong yet, we all get it wrong eventually. But for now, I am on a winning streak. But I am meticulously and obsessively studying the market because I love it. I help people for free.
You may get suprised how much quicker you get there. I just turned 31 and surpassed 3m NOK (271kUSD), taking on overtime, sidehustles and chasing small salery increases will accelerate your growth alot.
I’ll tell you what… just a few months back I was chasing and obsessing over $100k, and as of today I’m at $114k. Set to receive $1,000 in dividends next week too. Everyone gets excited for gifts in December, but I get excited for dividends 😂😂
For people who are more literal with terminology: note that the word and phrase "interest" and "compound interest" in this video actually mean "growth" and "compound growth" of investments, respectively. So this is about assets such as securities/ETFs that you purchase gaining value over time, *not* your money earning interest (money paid regularly at a particular rate for the use of money lent).
@@ramitsethi I believe your wording is what is generally used in the American vernacular, and perhaps most Americans understood exactly what you meant, so calling it careless might be too harsh. Hopefully did not come across as hostile. I just know I went too long waiting to become slowly rich from the compound interest of 0.1% I was getting on my savings 🤦♂
@daniel-ruiz I did the same with my savings - entering adulthood in the ZIRP era made “savings” super ineffective. Something I really wish I’d had clarity on is what a “good” percentage interest / growth rate to chase would look like. Now I have a clear framework: seek loans < 5%; seek savings > 3% (when you can get it); seek investments > 7%. And rearrange as soon as the economy allows when that’s not what you’re getting. But I’ve rarely seen that mental framework articulated clearly in personal finance stuff.
Love this example because it’s almost exactly what I did. I started investing at age 30 after reading your book. All I did was max out a Roth IRA every year (~$500/month and increased as Roth limits increased), and I hit $100k only 7 years later. Looking forward to seeing that continue to compound! 😍
Your commitment to educating your audience is truly admirable. We all aspire to attain financial stability and improve our lives. This goal can be achieved through smart investments, mindful spending, and prudent budgeting. I'm thankful for realizing the significance of striving for financial freedom from a young age.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money or you could hire a financial expert.
@@QuincyRocha-f7j This time last year I considered crypto without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. I got into the market with 15k, One year and a couple of months in, and I’m up with 550k. I truly cannot stress enough how helpful experts in this field are!
This time last year I considered crypto without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. I got into the market with 15k, One year and a couple of months in, and I’m up with 550k. I truly cannot stress enough how helpful experts in this field are!
@@HarrisDayton Over the years, I've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Angella Adamson’s insights. It's akin to finding a diamond in a coal mine. 💫🤑
I wish I learned this 20 years ago. Damn, I'm behind the game but I'm going to right this ship and max out my contribution for the next 25 until retirement.
Unfortunately I didn't have a clue about investing. I had a bad experience in my early 20's and lost a lot of money. Today at 40 from channels like this I know that the investing is the way to go. Can't wait what's going to happen in 10-15 years time ❤❤
Hey paying off your debt puts you way ahead of a loooot of people I think. Good job. I guess if you're going by this video, if you start now you'll be in good shape before you hit 50, if you take whatever you were paying towards debt every month and invest that.
Watched your video with Steven Bartlett on diaries of CEO. Since August ive invested £6000 and im aiming for the million by the time im 60 and probably more. Im 41 and wish i had started 20 years ago but gonna make up for it now. Also bought your book. Thank you
Most people don’t get inheritance, sure. I’d say that the Inheritance of knowledge is more lucky and powerful. I didn’t learn about this until my late 20’s. I’m happy I can share this with my kids one day.
I confirm, earlier this year I reached 100k and my net worth is exploding, already at 170k. It took 4 years to get 70k and now less than 1 year to get another 70k
This video is all about investing costs, not raw savings. Clearly massive savings, and the choices that make that possible, is the key to jumpstarting this thing, and is usually overlooked in this type of video. Front loading all your savings in the first 10 years is far superior to being consistently meh for 40 years, its just that most people won't do early boost savings, since you usually need to spend the most money early in life, when you setup a house, buy a car, and furnish your place. At 50, I have NONE of those expenses, and own outright, so saving 50 % + of my income is quite easy. Its much harder when just leaving home.
@@sprinkle61 Very true, as a 20 year old I am just paying down what I can first and investing whatever is leftover. Although because of my time horizon investing will probably give me a better ROI, but I like the peace of mind of being as debt free as possible.
@@kingcsss1620 I was broke at 20, I worked 3 jobs to make the mortgage payment. I always set $25-50 a week as if it didn't exist in my finances for saving and investing. It's slowly growing into a decent amount, the house will be paid off in under 5 years.
As someone who has more than 100K, I can confirm, it's crazy how fast it goes up. With the last 2 years bull run (including this year), I basically matched my salary in gains. I don't expect it to happen every year (like 2022 for example), but it's definitely a psychological boost.
@@samwilson4754 His name is financial shinanigan, so maybe its a troll comment. From the 5 numbers in the post, its possible that the second contributed number should be $7000, because saving $70,000 in three months is insane, and losing most of it in the market is also insane, as is boasting about it...
@@FinancialShinanigan 15 Months to get to $10,000 is possibly reasonable, even for me. That's roughly $300 a paycheque. It's a LOT of money, let's not joke around here, but it's doable.
I have less than 100 pages left in your book and I started reading it 5 days ago. Such an eye opener! It has made me understand my relationship with money and change it. I also realized I’m not in bad shape, it’s just time to invest! Thanks, Remit!
I just recently opened my kids custodial accounts. Ages 8 & 10. I give them $10 every month and then allow them to add in more themselves as they get it. They love it.
I think the best advice my dad ever gave me was to ask older people what their biggest regrets in life were, or what they would do differently if they could go back to 18 years old and start over with what they learned in life. Everyone I asked said not investing as soon as they could and buying a house as soon as they could afford to. I struggled to do both but there's light at the end of the tunnel.
I wish this was taught in schools. Lots of my friends complain that "retirement savings accounts" are useless because money "sits there depreciating". We aren't taught about the effects of compounding interest when invested in these accounts; with some countries offering tax sheltered benefits too.
I believe it’s all by design. If this was taught in schools millions would leave the labour force by age 30-40 as millionaires and leave the country. They want you in the system taking on debt and paying your taxes. Money doesn’t necessarily buy you happiness, but, it does buy you freedom.
The bottom-line, change your mindset and things will happen. Great videos, great channel. I just subbed a few days ago and very happy with what I see here.
Thank you Ramit for explaining the concepts in a visual and simple way. It clicks right away…the concept of compound interest. 🤯 when you see that the compound interest is making us more money vs the amount we put in. This reminds us that we should start inventing now rather than later 💰
Wow! Realizing in real time how true this is! I started with my job about 8 years ago & just cracked the $100k mark in my TSP (only contribute what my employer matches) and right around $78k in my 401k (contribute up to the match which is less than the TSP match). Just bought I Will Teach You to Be Rich for my fiancé & I… ready for my rich life.
Congrats! Excited for your bright future. Makes me sad when people don’t understand this and just squander their money because they think they’ll never have much.
@ Thank you very much! At the beginning, I wasn’t sure how much or fast my money would grow but what I did know was that I would at least put in enough to get the employer match (cant leave money on the table).
Love how you broke down the magic of compound interest! That $100k tipping point explanation makes it all click. Starting small but consistent really does pay off big in the long run.
I remember when my retirement accounts totaled $100000 & debts paid off a few years ago around my birthday. Fast forward to a few years later in the present with bigger contributions, net worth now over $200000 & hoping to hit $250000 within next year.
Love this! My dad opened a custodial ira for me too! He put money in it too and it was nice to have a head start on my retirement savings. I think more parents should consider this instead of obsessing over paying for college.
I didn’t get to start early coz I didn’t know what to do. Now that I’m more knowledgeable, I’m opening accounts for my daughters just so they take advantage of the time. By the time they’re 25, they’ll be ahead. Of course I’ll teach them too. I want them to have more options when they’re adults.
My niece had a rich uncle who was a financial advisor with no children. He set aside $500,000 for each of his 5 nieces and nephews the week they were born. They were born in different years. Apparently, he invested the money in each of their accounts, and managed it for them. The annual earnings on the low risk accounts averaged around 7%. Each niece and nephews received their money when they were 25 years old. Each account was over $2 million on their 25th birthday. Such a nice gift!
It’s amazing how much beliefs system teach us around money hold us back. How is nobody talking about 'The Architect of Riches' by Alexander Pierce, it really opens your eyes.
Bro I thought you was way older than me! You’re only 39? Not because your look, but the wisdom you have. I was only 22 when your book came out making you only 27. I still was lost financially at 27. Congratulations man.
We've just hit $100k in our investments (not counting our home as I don't count that as an investment, it's a cost) and I'm SO excited to see this difference kick in.
From my observation and historical market pattern, there might be a bit of turbulence in the market coming up, but here's the deal: Trying to guess what's going to happen next is less important than spreading your bets when trading and thinking long term. It's not about guessing the market's next move; it's about playing it smart and steady...managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Frank Halper , whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
One thing I know for certain is crypto is here to stay, the only thing that leaves is the people who don't manage their risk. Manage that, or the market will manage it for you. With the right strategies you will survive.
I graduated pharmacy school 2 years ago and I’ve been dumping almost all of my money into paying off my student loans. I’ve been contributing to my company’s Roth at ONLY the match and I’ve accumulated $73k in investments. I’m shocked how quickly this has happened. And my student loans will be paid off in February so I’ll be contributing much more next year. 🤩
And the scary reality is the reverse is also true - when you borrow BIG (think MORTgage) you'll be paying the bank their interest for decades... you might borrow $500K and payback double.🙄
No, no. Mortgages can have huge tax benefits. Plus, the value of the home, if you choose carefully, will also increase over time. Mortgage interest is tax deductible, and if you add in inflation, a mortgage is essentially free money if the interest rate is low enough. So don’t pay it off early. Use your extra money to invest in stocks instead. You’ll come out WAY ahead, in spite of what Dave Ramsey says, if you listen to him.
@@suzanneemerson2625 Love how everyone throws around "tax benefits" with mortgages who clearly don't understand "tax benefits" Most americans take standard deduction. Most americans don't have a big enough mortgage to actually itemize their mortgage interest in excess of standard deduction. There is no tax benefit there.... quit spewing bullshit you don't understand
@@suzanneemerson2625 So true. My husband and I were looking at our mortgage statement the other day, and I said I felt so lucky to have found the right house at the right time. We bought it for $180k at 3.5% interest, with an $8k rural development grant, and it's tripled in value. Which of course means absolutely nothing unless we sell. But our mortgage for a house on 10 acres is the same as the rent for a 2-3 bedroom apartment! Yes, there's the maintenance and rehab costs, but still! I'm in no rush to pay that particular debt off, we just send an extra $50/ month.
Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Can you make an informational video talking about fees for investment accounts and best investment accounts to use with minimal fees as well as talking about the worst investment accounts to use with very high fees?
I was deep into debt and had a negative net worth at the beginning of 2019. I sold my condo, rented for a bit, got out of debt, bought another condo and then got aggressive with my investing. What I used to pay in debts, I now save and invest instead and have tried to keep my spending roughly the same, with just a little more in guilt free spending than what I was doing before. My net worth at the end of 2024 is now about $300k, with $180k of that being my investments.
Actually, it’s about $100k. I also have about $20k in savings. I don’t consider my condo anything other than where I live, but it’s still an asset that I own and my mortgage is still a liability, so they go on my personal balance sheet. I pay much more attention to my investments and go with that.
The percentage trick totally works! Thats how I got my mom to start saving. Told her to save 10%. She didnt even realize she was saving 600/month until a year later when we went over it again.
Whats the alternative to using a financial advisor? I currently setup a Roth IRA with one. What suggestions do you have so I can avoid paying the fees? Thank you
What if you reframed that? "I wish that 20 years ago, I had sought out the knowledge to learn how to invest." By taking control over your past (as much as reasonably possible), you can take control over your future.
You think you have time until you realize that "time" was the one thing you should've been better utilizing. I'm 25 years late, but I'll use the next 25 to hopefully put us in a manageable place so that we aren't working the rest of our late aged years. GL to everyone! Also, just bought your book's second edition and working out a plan we can take into action starting the new year. Thanks for all of your acknowledge.
Amazing information, people need to see more of this and not get discouraged with the smaller dollar amounts they are investing. When I do financial counseling people never get to understand the math part of it. I have showed them compounding interest calculators and they do not think it legit.
It’s insane how fast it starts to grow at some point. Just this calendar year my investments have grown in interest only by $150K. I am 38 and invested early. It’s a good market right now so I don’t expect it to do that well year over year but it’s still astonishing!
I immigrated to US at 33 and started working in corporate America at 35. After only 4 years of maxing my 401k and only adding 100/month to Roth I passed 100k and on track to retire rich grandma 😂
One biggest thing people miss for these type of investment videos is that you have to have 100k in INVESTMENTS. Thats 100k liquid cash invested with risk (even Sp500 doesn't have positive return every year). Its not 100k 'networth' because it does not include your housing / emergency fund / fixed savings as a safety net.
Good stuff. I prefer to run a few ETFS, like VOO, SCHG and others. Getting to $100k and beyond is a lot easier this way. Side note, $1 million now is approx only $400k in 30 years
For years, I've increased my investment percentage when I get a salary increase. To me, it's the natural time to do so because you won't feel the difference. If you typically get a 2 or 3% annual raise, add 1% to your 401K contribution. If you get a promotion, add more.
At 4:47, i think theres a typo on the x axis of the graph. You said it'll take 22 more years to reach 1 million dollars. 22+8 (the 8 spent getting to 100k) is 30 years but the x-axis shows 40 years (which would be 32 years).
I caught that, too. But I think it's the other way around. 40 is correct and it will take 32 years or 4 times as long. Very rough math. Rule of 72, at 7% interest it will take 72/7 ~= 10 years to double your money. Doubling 100k 3 times is 800k, so it should take a little over 30 years to go from 100k to 1M.
As an Indian women physician no one ever told me all these things, no one in family no one in school, no one in residency or anywhere and then I fumbled on your book last year somehow and kept gifting your books to anyone I meet lol and tell them to join your channel, today I met a 16 year old and gave her your book and shared your videos !!! Thanks so much for all that you do ❤
7% real return is NOT "very conservative", it's just that the run since 2009 has been absolutely outstanding. Long term real returns are in the region of 7% in the outstanding US - globally it is more like 5-6% for most developed markets. Given we've had such a long secular bull market it would be wise to factor in a period of below-trend returns.
I believe going back about 100 years the real return (after inflation and taxes) is about 4.6%. I wish he wouldn't use 7% suggesting it is conservative. edit: I looked into my sources a bit more and the best one (that gives the most details into their calculations) comes up with 7%. That's the actual average, not a conservative average. I'm still wondering how the lower number (4.6% is calculated) because it seems like it's coming from a reputable source (Crestmont Research), but just seems too low compared to the others and not enough detail is given.
Market generally refers to everyone's favorite, SP500, not the total US market index. And no one ever uses a global index, because its generally underperformed the US for 99% of all recorded stock market history. 7% real return, while not conservative, is generally a 100 year average (and yes, this includes the great depression, where the market took 26+ years to recover). In that sense, 7% real return is already a conservative estimate because it includes many, many recessionary cycles. Otherwise, if you just base it on the last 15 year bull market, it would be 10%, which would be very optimistic.
@@rebeltheharem7028 I'm going to go back and check the sources because I'm seeing two different numbers. One close to the 7% and another close to 4 (which includes taxes, but I don't think taxes should hit it that hard).
Thanks for sharing the statistics for investing! I think it makes investing a lot less scary for people. Investing in stocks should really be taught at school. But never will. Luckily, we all have youtube to learn the money concepts school didn't teach us to become rich. Great video, Ramit
Question: does it matter 100K in a single account or separate across multiple accounts like 50K in 401K, another 50K in Roth, some in brokerage accounts?
The difference would only be from taxes, fees, or returns being different between the accounts. 100k in one IRA, or 50k in 2 of the same IRAs invested identically will leave you with the same net worth.
@@aasdf6615 right I get that, but my question is more along the lines of if my investments are spread out across multiple accounts does the compounding interest work at the same “strength, speed, whatever” as an single account holding all the investments? I’m already seeing the magic of compound interest in just the last couple of years with my largest account but question myself if I should consolidate down but haven’t due to seeing solid returns in the smaller account for the last couple of years.
It's total net worth. Consider calculating amd tracking it annually, on Dec 31 or your birthday. I find that most need $100k *and* 10 years for the compounding to stick.
Hi Ramit, I take your point about minimizing costs. How does one do that? Is there a way to invest that minimizes all those fees and charges? Do you have any recommendations? For context, I live in Germany.
So invest in what exactly? I am 37 and finally got on with a roth IRA. Is Index funds the answer? How much of your paycheck should go into the IRA, and how much into the index funds, and what about the 401K?
For the new people just getting into investing I think it's worth pointing out that everyone likes to make videos on how everything changes after 100k and it's not technically true. 100k is just a bigger milestone than it may appear to be for becoming a millionaire. However, there is nothing magical about 100k over 50k or 10k or 1k. If you can only invest 10 dollars a month and your goal is to get to 1k invested that first 1k will take you the longest and the second thousand will come faster and the third even faster. The same applies to 10k, 20k, etc. Compound interest picks up steam as you go, not matter the milestone you are aiming for; 100k is talked about a lot simply because you can't comfortably retire on 10k or 50k, but if you hit 100k early on enough in life you are well on your way to getting to that comfy retirement number. When early on in your journey aim for what you can obtain because this principle still holds true even at smaller numbers.
I think the reason people make these videos is because it's catchy for SEO. You can't include nuance in a video title. Unfortunately most of these videos don't include nuance in the content either. My take on the topic is that 100k seems like a relevant target because the interest earned is a meaningful amount relative to modern living expenses. If you're spending 50k/year and your 10k investment makes 1k is it really going to feel like it made an impact on your finances? But a 100k investment making 10k? Okay, that's pretty good. Basically, $100k is currently around where most people will notice that their investments are starting to earn more than they put in each year.
@@stevenspencer306 Dude even I know the majority of people don't even have 20K cash if the stats are correct... so 5X that amount they don't have either!!
Very nice job covering the basics. I am sharing this not to brag but to show what’s possible. I’m retired and I have 2 separate portfolios. One is a long term growth dividend portfolio of stocks where i sell covered calls strategically and my 2nd portfolio is the Crypto trading strategy where its all about income. This year I am on pace to make $120K in realized options profits and around $869K in crypto profit... What is great is that my long-term portfolio is still up significantly as well. As such, it’s possible to generate excellent income but still have a total return perspective. ...Amidst this, the insights of a knowledgeable guide like that of Expert Shellane Maxwell can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
New survey has revealed rising adoption of cryptocurrency among the world billionaires, as they start experimenting in the digital currency, expanding their investments portfolio beyond traditional profitable assets.
I've got 100K, at 4 percent, it doesn't seem to be doing anything much at all, and not even keeping up with inflation over the last 4 years. In fact, I'm rather miffed people are borrowing my money at such a low rate of return. So I'm always searching for something better.
The rule of 72: given an annual rate of return (r), how long (t) would it take to double an initial investment. t = 72/r. So, at 7% return, $10K would double in about 10 years. Your chart shows an order of magnitude growth in just 7.5 years, given a 7% return. How?
''Net Worth Skyrockets After $100k'' No, it really does not. It just *seems* more like it. the 5-digit numbers simply have an allure to them that the 4 digits do not have. If anything, *time* is the factor that makes your investments skyrocket, as it is the one factor that brings about the compounding in terms of yields.
Does investing in ETF’s give interest? How does compounding works when investing in ETF like VOO? Are there any specific ETFs need to invest in for compounding?
I would love more info on custodial controlled investment choices. I have an 11yr old with special needs so I want to make sure he is set up with income when he reaches retirement age.
Can you explain this? When you are investing in a mutual fund, where does the interest come from? Are you referring to dividends that few funds provide?
In my country (Philippines), a 0.5% management fee is already cheap, and I've looked! 1% is the average. 0.1%? Non-existent🤦♂. I guess I'll take what I can get.
I started putting money in 401k in 2012 at age of 35. In just 12 years I have portfolio of 700k. I think couple of more years to get to 1 Million. I probably would have touched million if I didn't try to time the market and sitting on cash for long durations.
Similar, although not from the U.S. Currently at £550k. Held back a total of £125k for 15-17 months until the whole lot went in. I stupidly listened to all the UA-cam videos saying a correction / crash was nailed on for 2023 and kept the powder dry expecting to buy significantly on the dip. Never again. I’d probably be about £600k now.
***We are in our 60s. Our brand new home is paid off. We have no debts(ccards/car payments). We rent out a bedroom on Airbnb now for 3 yrs. We have a 12 mo. EFund. Whatelse can we do?? We have 4 sources of income: his SS, my SSDI, his pt job, our Airbnb monthly rental $$.***
Great video. Love the discussion on fees an compound interest. Our investments earn more than us every year now and that's kinda crazy - snowball is indeed legit
I just passed the 500k mark. Looking forward to getting to 1 million.
Nice! That’s my short term goal. You’re well on your way to a million dollars.
Congrats Eric!
🎉 congrats lfg!!
How long did it take you from $0 to 500k. What was your investment portfolio like?
@@abish83 I personally only started stock 3 years ago and I am young, as my family didn't understand how it worked, I taught myself. But I made on average around 76% return weighted this year. I have multiple stocks that I have sold over 100% return in under three months. I can help you, but most I try to help. They one doesn't listen, two, I will talk about a company, and they think that's risky and go put into unknown Crypto coin. They don't sell when I tell them, they are overgreedy or not patient. I do have a gut feeling and I have not been wrong yet, we all get it wrong eventually. But for now, I am on a winning streak. But I am meticulously and obsessively studying the market because I love it. I help people for free.
I just turned 26 and am currently at just over 20k. I'm aiming for 100k by 30 and retirement by 50 🤠. That'll be 15 whole years given back to me!!
Nice!! It'll happen if you stick to your plan. So excited for you!
I appreciate your ambition! Keep in mind, a 30 year long retirement will require A LOT of money. What's your annual draw?
You can do it! I had a similar journey and made my goals. You got this!
You may get suprised how much quicker you get there. I just turned 31 and surpassed 3m NOK (271kUSD), taking on overtime, sidehustles and chasing small salery increases will accelerate your growth alot.
Im 34 at 120k. You'll get there. Im upping my contributions this week. Keep at it. 💪🏿💪🏿💪🏿
I’ll tell you what… just a few months back I was chasing and obsessing over $100k, and as of today I’m at $114k. Set to receive $1,000 in dividends next week too. Everyone gets excited for gifts in December, but I get excited for dividends 😂😂
Me too!
Should reinvest them, makes the compound that much more.
@ I do reinvestment my dividends, automatically. Right on! 😎
This is why I love Dec! Dividend and cap gains month!💪
Etf
For people who are more literal with terminology: note that the word and phrase "interest" and "compound interest" in this video actually mean "growth" and "compound growth" of investments, respectively. So this is about assets such as securities/ETFs that you purchase gaining value over time, *not* your money earning interest (money paid regularly at a particular rate for the use of money lent).
Yes, this is a good comment and my wording was careless. Thank you for correcting me here
@@ramitsethithis was super helpful!
@@ramitsethi I believe your wording is what is generally used in the American vernacular, and perhaps most Americans understood exactly what you meant, so calling it careless might be too harsh. Hopefully did not come across as hostile.
I just know I went too long waiting to become slowly rich from the compound interest of 0.1% I was getting on my savings 🤦♂
@daniel-ruiz I did the same with my savings - entering adulthood in the ZIRP era made “savings” super ineffective. Something I really wish I’d had clarity on is what a “good” percentage interest / growth rate to chase would look like. Now I have a clear framework: seek loans < 5%; seek savings > 3% (when you can get it); seek investments > 7%. And rearrange as soon as the economy allows when that’s not what you’re getting.
But I’ve rarely seen that mental framework articulated clearly in personal finance stuff.
When I see the example for interest, I am a little perplexed too so I jumped right to the comment to see if anyone caught it lol
Love this example because it’s almost exactly what I did. I started investing at age 30 after reading your book. All I did was max out a Roth IRA every year (~$500/month and increased as Roth limits increased), and I hit $100k only 7 years later. Looking forward to seeing that continue to compound! 😍
I hope you've started investing in other accounts as well, such as 401k, hsa, brokerage accounts, etc.
Whoohooooo!!! Congratulations!
@@stephaniel6867some people dont’ have access to a 401k or an HSA account
@@stephaniel6867 This is good advice, I have an IRA and a brokerage account. I plan on at least a million in each by retirement.
I hit 100k, blinked, and I'm already at 250k. We only have the median household income for the US. So excited for my next milestones!
I feel the same way. The first $100K takes a long time and then it zooms.
@@beetdiggingcougar Same here, amazing how fast it goes after $100k. I searched for the reason which is how I found this video.
Your commitment to educating your audience is truly admirable. We all aspire to attain financial stability and improve our lives. This goal can be achieved through smart investments, mindful spending, and prudent budgeting. I'm thankful for realizing the significance of striving for financial freedom from a young age.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money or you could hire a financial expert.
@@QuincyRocha-f7j This time last year I considered crypto without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. I got into the market with 15k, One year and a couple of months in, and I’m up with 550k. I truly cannot stress enough how helpful experts in this field are!
This time last year I considered crypto without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. I got into the market with 15k, One year and a couple of months in, and I’m up with 550k. I truly cannot stress enough how helpful experts in this field are!
@@HerbDennis-z4m Could you possibly recommend a CFA you've consulted with?
@@HarrisDayton Over the years, I've been a part of numerous trading programs, sifting through a barrage of information. Yet, nothing has come close to the sheer clarity, depth, and precision of Angella Adamson’s insights. It's akin to finding a diamond in a coal mine.
💫🤑
This is so true, my investments started growing a lot faster after reaching 100k, it's kinda cool to see
Wait til you see what happens when you reach $1 million!!! Unbelievable how quickly it grows. 😮😮😮
How much it is now?
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
The deeper your investment roots, the stronger your financial security will be in the future.
Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.
I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA Julianne Iwersen Niemann a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her
I wish I learned this 20 years ago. Damn, I'm behind the game but I'm going to right this ship and max out my contribution for the next 25 until retirement.
GREAT reaction to this video!! I love your attitude
This is the best, most honest and realistic video that you'll find about personal financial investments.
Unfortunately I didn't have a clue about investing. I had a bad experience in my early 20's and lost a lot of money. Today at 40 from channels like this I know that the investing is the way to go. Can't wait what's going to happen in 10-15 years time ❤❤
Read his book, very easy to understand and a good starting point.
@Artbynbru thank you 🙏
Still have time. I started late 30s and now mid 50s I’ve build a decent amount. Main secret is be consistent every month. Good luck!
@@AM-ff6wv Good to hear. Late 30s myself. What exactly did you invest in though.
Hey paying off your debt puts you way ahead of a loooot of people I think. Good job. I guess if you're going by this video, if you start now you'll be in good shape before you hit 50, if you take whatever you were paying towards debt every month and invest that.
Watched your video with Steven Bartlett on diaries of CEO. Since August ive invested £6000 and im aiming for the million by the time im 60 and probably more. Im 41 and wish i had started 20 years ago but gonna make up for it now. Also bought your book. Thank you
I'm 44 and just now learning all this stuff. I'm ready to start, wish I would've sooner.
That's the attitude, Keep on going 👍
Most people don’t get inheritance, sure. I’d say that the Inheritance of knowledge is more lucky and powerful. I didn’t learn about this until my late 20’s. I’m happy I can share this with my kids one day.
I confirm, earlier this year I reached 100k and my net worth is exploding, already at 170k. It took 4 years to get 70k and now less than 1 year to get another 70k
It's all psychological ultimately, there's nothing magic about 100k, it's just a number that feels substantial, because it is.
Happy for you! This has been a great year in the market so I’m sure that helped.
@@B33gyoshi great point, the stock market had a larger contribution than my direct contributions for the first time this year
@@B33gyoshi great point! This year for the first time the stock market returns contributed more than my direct contributions
Its percentage appreciation year over year so starts to look bigger as it grows. Nothing new.
The cost point is super vital, people really overlook the impact driving a paid off car as long as possible, clearing student loans, etc.
This video is all about investing costs, not raw savings. Clearly massive savings, and the choices that make that possible, is the key to jumpstarting this thing, and is usually overlooked in this type of video. Front loading all your savings in the first 10 years is far superior to being consistently meh for 40 years, its just that most people won't do early boost savings, since you usually need to spend the most money early in life, when you setup a house, buy a car, and furnish your place. At 50, I have NONE of those expenses, and own outright, so saving 50 % + of my income is quite easy. Its much harder when just leaving home.
@@sprinkle61 Very true, as a 20 year old I am just paying down what I can first and investing whatever is leftover. Although because of my time horizon investing will probably give me a better ROI, but I like the peace of mind of being as debt free as possible.
@@kingcsss1620 I was broke at 20, I worked 3 jobs to make the mortgage payment. I always set $25-50 a week as if it didn't exist in my finances for saving and investing. It's slowly growing into a decent amount, the house will be paid off in under 5 years.
As someone who has more than 100K, I can confirm, it's crazy how fast it goes up. With the last 2 years bull run (including this year), I basically matched my salary in gains. I don't expect it to happen every year (like 2022 for example), but it's definitely a psychological boost.
I can relate.
Ramit is right on here. Started in 2014 with £0. This year (2024) hit £500k invested. It’s now starting to run harder than I can.
Agreed, it took me 15 months to get to my 1st $10,000 (I contributed $9,000) but only 3 months from $100,000 to $112,000 (I contributed $70,000).
What are you even saying stop
@@samwilson4754 His name is financial shinanigan, so maybe its a troll comment. From the 5 numbers in the post, its possible that the second contributed number should be $7000, because saving $70,000 in three months is insane, and losing most of it in the market is also insane, as is boasting about it...
@@samwilson4754 🤣😂
@@FinancialShinanigan 15 Months to get to $10,000 is possibly reasonable, even for me. That's roughly $300 a paycheque. It's a LOT of money, let's not joke around here, but it's doable.
I have less than 100 pages left in your book and I started reading it 5 days ago. Such an eye opener! It has made me understand my relationship with money and change it. I also realized I’m not in bad shape, it’s just time to invest! Thanks, Remit!
I just recently opened my kids custodial accounts. Ages 8 & 10. I give them $10 every month and then allow them to add in more themselves as they get it. They love it.
I watch one of your videos DAILY. That way this information is forever solidified in my brain. Thank you for the knowledge Ramit
Thanks Ramit for all the motivating videos you provided over the past.
Please continue like this! 👍👍👍
I think the best advice my dad ever gave me was to ask older people what their biggest regrets in life were, or what they would do differently if they could go back to 18 years old and start over with what they learned in life. Everyone I asked said not investing as soon as they could and buying a house as soon as they could afford to. I struggled to do both but there's light at the end of the tunnel.
I was waiting for a video like this! I only started investing last year and see the returns.Thank you!!
I wish this was taught in schools. Lots of my friends complain that "retirement savings accounts" are useless because money "sits there depreciating". We aren't taught about the effects of compounding interest when invested in these accounts; with some countries offering tax sheltered benefits too.
I believe it’s all by design. If this was taught in schools millions would leave the labour force by age 30-40 as millionaires and leave the country. They want you in the system taking on debt and paying your taxes.
Money doesn’t necessarily buy you happiness, but, it does buy you freedom.
@@VoiceOfThe Money doesn't buy happiness but it can rent it for a long time
Ooh i love the cameo from Alexis & Olivia. Hope Ramit does this more in the videos, its a nice concrete example!
The bottom-line, change your mindset and things will happen.
Great videos, great channel. I just subbed a few days ago and very happy with what I see here.
Just hit 100k this November. Started back at the end of 2019 when I started my first internship! Definitely hard, but rewarding!
Thank you Ramit for explaining the concepts in a visual and simple way. It clicks right away…the concept of compound interest. 🤯 when you see that the compound interest is making us more money vs the amount we put in.
This reminds us that we should start inventing now rather than later 💰
Wow! Realizing in real time how true this is! I started with my job about 8 years ago & just cracked the $100k mark in my TSP (only contribute what my employer matches) and right around $78k in my 401k (contribute up to the match which is less than the TSP match). Just bought I Will Teach You to Be Rich for my fiancé & I… ready for my rich life.
Congrats! Excited for your bright future. Makes me sad when people don’t understand this and just squander their money because they think they’ll never have much.
@ Thank you very much! At the beginning, I wasn’t sure how much or fast my money would grow but what I did know was that I would at least put in enough to get the employer match (cant leave money on the table).
Love how you broke down the magic of compound interest! That $100k tipping point explanation makes it all click. Starting small but consistent really does pay off big in the long run.
I remember when my retirement accounts totaled $100000 & debts paid off a few years ago around my birthday. Fast forward to a few years later in the present with bigger contributions, net worth now over $200000 & hoping to hit $250000 within next year.
I’m at the 198k mark total. Trying to get individual portfolios past the 100k mark too
Love this! My dad opened a custodial ira for me too! He put money in it too and it was nice to have a head start on my retirement savings. I think more parents should consider this instead of obsessing over paying for college.
I didn’t get to start early coz I didn’t know what to do. Now that I’m more knowledgeable, I’m opening accounts for my daughters just so they take advantage of the time. By the time they’re 25, they’ll be ahead. Of course I’ll teach them too. I want them to have more options when they’re adults.
My niece had a rich uncle who was a financial advisor with no children. He set aside $500,000 for each of his 5 nieces and nephews the week they were born. They were born in different years. Apparently, he invested the money in each of their accounts, and managed it for them. The annual earnings on the low risk accounts averaged around 7%.
Each niece and nephews received their money when they were 25 years old. Each account was over $2 million on their 25th birthday. Such a nice gift!
It’s amazing how much beliefs system teach us around money hold us back. How is nobody talking about 'The Architect of Riches' by Alexander Pierce, it really opens your eyes.
Bro I thought you was way older than me! You’re only 39? Not because your look, but the wisdom you have. I was only 22 when your book came out making you only 27. I still was lost financially at 27. Congratulations man.
Yes, he said "for over 25 years", he later says "now I'm in my forties"
It’s been about 28 years since he started in investing. He just said “over 25.” He’s 42 now.
It’s the grandpa, Mr. Rogers cardigan that gives him the old man vibe.
His father taught him
He’s Indian. Personal finance is in our blood
I was getting charged 1.7% and the portafolio was so poorly managed, imagine if I never read your book last year, life changer
These estimates are based on contributing $840.33 every month for 30 years in case anyone is curious.
Which is doable honestly, I make 18 an hour and can still do this
Oh snap!...What expenses do you have though? Most people have living expenses, kids, possibly student loans@@calebob9757
One of my favorite videos of yours Ramit! You’re giving people the chance to dream.
The obligatory why networth explodes after 100k video that every finfluencer makes. 🤣🤣🤣
I hope Ramit in factoring in things like capital gains tax when calculating the real returns
We've just hit $100k in our investments (not counting our home as I don't count that as an investment, it's a cost) and I'm SO excited to see this difference kick in.
I’ve seen plenty of videos like this but never one that was this fun
I didn't start until age 40! 😭I had zero savings/zero equity and only finally paid off debt at 40! Now I'm trying to catch up!
You still have 20 plus years to grow your investment. Not late at all!
At least you've started. Now you're debt free heading into retirement is going to be much easier!
Believe it or not, you are still in better shape than most your age. Good Luck!!!
From my observation and historical market pattern, there might be a bit of turbulence in the market coming up, but here's the deal: Trying to guess what's going to happen next is less important than spreading your bets when trading and thinking long term. It's not about guessing the market's next move; it's about playing it smart and steady...managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Frank Halper , whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
He's mostly on Telegrams, using the user name
@FrankHalper
One thing I know for certain is crypto is here to stay, the only thing that leaves is the people who don't manage their risk. Manage that, or the market will manage it for you. With the right strategies you will survive.
I will recommend. Frank Halper. Investing Services. to you. He is good at what he does...
I just read more about "Frank Halper Crypto Program" on the internet. He's definitely a Pro.
I graduated pharmacy school 2 years ago and I’ve been dumping almost all of my money into paying off my student loans. I’ve been contributing to my company’s Roth at ONLY the match and I’ve accumulated $73k in investments. I’m shocked how quickly this has happened. And my student loans will be paid off in February so I’ll be contributing much more next year. 🤩
And the scary reality is the reverse is also true - when you borrow BIG (think MORTgage) you'll be paying the bank their interest for decades... you might borrow $500K and payback double.🙄
That’s why you pay extra each month to principal. You’ll save tens of thousands in interest payments
No, no. Mortgages can have huge tax benefits. Plus, the value of the home, if you choose carefully, will also increase over time.
Mortgage interest is tax deductible, and if you add in inflation, a mortgage is essentially free money if the interest rate is low enough.
So don’t pay it off early. Use your extra money to invest in stocks instead. You’ll come out WAY ahead, in spite of what Dave Ramsey says, if you listen to him.
@@suzanneemerson2625 Love how everyone throws around "tax benefits" with mortgages who clearly don't understand "tax benefits"
Most americans take standard deduction. Most americans don't have a big enough mortgage to actually itemize their mortgage interest in excess of standard deduction.
There is no tax benefit there....
quit spewing bullshit you don't understand
@@suzanneemerson2625 So true. My husband and I were looking at our mortgage statement the other day, and I said I felt so lucky to have found the right house at the right time. We bought it for $180k at 3.5% interest, with an $8k rural development grant, and it's tripled in value. Which of course means absolutely nothing unless we sell. But our mortgage for a house on 10 acres is the same as the rent for a 2-3 bedroom apartment! Yes, there's the maintenance and rehab costs, but still! I'm in no rush to pay that particular debt off, we just send an extra $50/ month.
I lived it , near 60 and it’s so true
Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Covered calls can really boost your returns. Especially when you add in dividend stocks and ETFs
Can you make an informational video talking about fees for investment accounts and best investment accounts to use with minimal fees as well as talking about the worst investment accounts to use with very high fees?
I was deep into debt and had a negative net worth at the beginning of 2019.
I sold my condo, rented for a bit, got out of debt, bought another condo and then got aggressive with my investing.
What I used to pay in debts, I now save and invest instead and have tried to keep my spending roughly the same, with just a little more in guilt free spending than what I was doing before.
My net worth at the end of 2024 is now about $300k, with $180k of that being my investments.
Great. Is $120k your asset (condo)?
Actually, it’s about $100k. I also have about $20k in savings.
I don’t consider my condo anything other than where I live, but it’s still an asset that I own and my mortgage is still a liability, so they go on my personal balance sheet.
I pay much more attention to my investments and go with that.
@Trix897 That's great. It sounds like you are in a great financial shape. Keep it up!
The percentage trick totally works! Thats how I got my mom to start saving. Told her to save 10%. She didnt even realize she was saving 600/month until a year later when we went over it again.
Just hit another 100K milestone!! Thank you for the advice!
It's the same with any number though. The exponential function is the same.
Too bad your not coming to Texas I would love to attend one of your book tour live events. Hopefully you make it down to the DFW area sometime soon.
Thank you. From Melbourne Australia
Whats the alternative to using a financial advisor?
I currently setup a Roth IRA with one. What suggestions do you have so I can avoid paying the fees?
Thank you
I wish someone had explained investing to me like this over 20 years ago
What if you reframed that? "I wish that 20 years ago, I had sought out the knowledge to learn how to invest." By taking control over your past (as much as reasonably possible), you can take control over your future.
More of a dream come true by creating multiple sources of incomes. Truly proud of the decision of getting started with HUDSON OMID
You think you have time until you realize that "time" was the one thing you should've been better utilizing. I'm 25 years late, but I'll use the next 25 to hopefully put us in a manageable place so that we aren't working the rest of our late aged years. GL to everyone!
Also, just bought your book's second edition and working out a plan we can take into action starting the new year. Thanks for all of your acknowledge.
Amazing information, people need to see more of this and not get discouraged with the smaller dollar amounts they are investing. When I do financial counseling people never get to understand the math part of it. I have showed them compounding interest calculators and they do not think it legit.
It’s insane how fast it starts to grow at some point. Just this calendar year my investments have grown in interest only by $150K. I am 38 and invested early. It’s a good market right now so I don’t expect it to do that well year over year but it’s still astonishing!
It's absolute doable, I started investing in my early 20s & now almost 30 i have over $100k & a rental property
I started working and investing in 2019 and after 2 job switches, I'm over 100k in my retirement accounts
I immigrated to US at 33 and started working in corporate America at 35. After only 4 years of maxing my 401k and only adding 100/month to Roth I passed 100k and on track to retire rich grandma 😂
Currently 26 and 27% away from reaching my first $100,000. I’ve been dreaming of when it happens😅
Just beware of the Sequence of Returns Risk. Sometimes it's an unwelcome party crasher... 😢
One biggest thing people miss for these type of investment videos is that you have to have 100k in INVESTMENTS. Thats 100k liquid cash invested with risk (even Sp500 doesn't have positive return every year). Its not 100k 'networth' because it does not include your housing / emergency fund / fixed savings as a safety net.
Good stuff. I prefer to run a few ETFS, like VOO, SCHG and others. Getting to $100k and beyond is a lot easier this way. Side note, $1 million now is approx only $400k in 30 years
For years, I've increased my investment percentage when I get a salary increase. To me, it's the natural time to do so because you won't feel the difference. If you typically get a 2 or 3% annual raise, add 1% to your 401K contribution. If you get a promotion, add more.
Love your vids, helping me learn to be wise with money
At 4:47, i think theres a typo on the x axis of the graph. You said it'll take 22 more years to reach 1 million dollars. 22+8 (the 8 spent getting to 100k) is 30 years but the x-axis shows 40 years (which would be 32 years).
I caught that, too. But I think it's the other way around. 40 is correct and it will take 32 years or 4 times as long. Very rough math. Rule of 72, at 7% interest it will take 72/7 ~= 10 years to double your money. Doubling 100k 3 times is 800k, so it should take a little over 30 years to go from 100k to 1M.
As an Indian women physician no one ever told me all these things, no one in family no one in school, no one in residency or anywhere and then I fumbled on your book last year somehow and kept gifting your books to anyone I meet lol and tell them to join your channel, today I met a 16 year old and gave her your book and shared your videos !!! Thanks so much for all that you do ❤
Sharing is caring!! ❤
this video is amazing. Thanks Ramit!
7% real return is NOT "very conservative", it's just that the run since 2009 has been absolutely outstanding. Long term real returns are in the region of 7% in the outstanding US - globally it is more like 5-6% for most developed markets. Given we've had such a long secular bull market it would be wise to factor in a period of below-trend returns.
I believe going back about 100 years the real return (after inflation and taxes) is about 4.6%. I wish he wouldn't use 7% suggesting it is conservative.
edit: I looked into my sources a bit more and the best one (that gives the most details into their calculations) comes up with 7%. That's the actual average, not a conservative average. I'm still wondering how the lower number (4.6% is calculated) because it seems like it's coming from a reputable source (Crestmont Research), but just seems too low compared to the others and not enough detail is given.
!!!
@@markgordon6717Roth accounts have no taxes and traditional accounts can have positive arbitrage. Including taxes in this discussion is wild.
Market generally refers to everyone's favorite, SP500, not the total US market index. And no one ever uses a global index, because its generally underperformed the US for 99% of all recorded stock market history.
7% real return, while not conservative, is generally a 100 year average (and yes, this includes the great depression, where the market took 26+ years to recover).
In that sense, 7% real return is already a conservative estimate because it includes many, many recessionary cycles.
Otherwise, if you just base it on the last 15 year bull market, it would be 10%, which would be very optimistic.
@@rebeltheharem7028 I'm going to go back and check the sources because I'm seeing two different numbers. One close to the 7% and another close to 4 (which includes taxes, but I don't think taxes should hit it that hard).
Great video 👌 thanks 🙏
Thanks for sharing the statistics for investing! I think it makes investing a lot less scary for people. Investing in stocks should really be taught at school. But never will. Luckily, we all have youtube to learn the money concepts school didn't teach us to become rich. Great video, Ramit
Question: does it matter 100K in a single account or separate across multiple accounts like 50K in 401K, another 50K in Roth, some in brokerage accounts?
This was my question as well I have my investments spread across 3 accounts. All are performing well but combined are under the 100k mark.
The difference would only be from taxes, fees, or returns being different between the accounts. 100k in one IRA, or 50k in 2 of the same IRAs invested identically will leave you with the same net worth.
@@aasdf6615 right I get that, but my question is more along the lines of if my investments are spread out across multiple accounts does the compounding interest work at the same “strength, speed, whatever” as an single account holding all the investments? I’m already seeing the magic of compound interest in just the last couple of years with my largest account but question myself if I should consolidate down but haven’t due to seeing solid returns in the smaller account for the last couple of years.
It's total net worth. Consider calculating amd tracking it annually, on Dec 31 or your birthday. I find that most need $100k *and* 10 years for the compounding to stick.
@@arh1234 100K + 10 years with or without continuous saving?
Hi Ramit, I take your point about minimizing costs. How does one do that? Is there a way to invest that minimizes all those fees and charges? Do you have any recommendations? For context, I live in Germany.
So invest in what exactly? I am 37 and finally got on with a roth IRA. Is Index funds the answer? How much of your paycheck should go into the IRA, and how much into the index funds, and what about the 401K?
For the new people just getting into investing I think it's worth pointing out that everyone likes to make videos on how everything changes after 100k and it's not technically true. 100k is just a bigger milestone than it may appear to be for becoming a millionaire. However, there is nothing magical about 100k over 50k or 10k or 1k. If you can only invest 10 dollars a month and your goal is to get to 1k invested that first 1k will take you the longest and the second thousand will come faster and the third even faster. The same applies to 10k, 20k, etc. Compound interest picks up steam as you go, not matter the milestone you are aiming for; 100k is talked about a lot simply because you can't comfortably retire on 10k or 50k, but if you hit 100k early on enough in life you are well on your way to getting to that comfy retirement number.
When early on in your journey aim for what you can obtain because this principle still holds true even at smaller numbers.
Dude you know the people with a ton of cash have either high income compared to their normal spending or low expenses compared to income.
@@donaldlyons17 I don't really know what the relevancy of this comment is to mine, but okie dokie.
I think the reason people make these videos is because it's catchy for SEO. You can't include nuance in a video title. Unfortunately most of these videos don't include nuance in the content either. My take on the topic is that 100k seems like a relevant target because the interest earned is a meaningful amount relative to modern living expenses. If you're spending 50k/year and your 10k investment makes 1k is it really going to feel like it made an impact on your finances? But a 100k investment making 10k? Okay, that's pretty good. Basically, $100k is currently around where most people will notice that their investments are starting to earn more than they put in each year.
@@stevenspencer306 Dude even I know the majority of people don't even have 20K cash if the stats are correct... so 5X that amount they don't have either!!
This is a great episode! I love content like this!
Very nice job covering the basics. I am sharing this not to brag but to show what’s possible. I’m retired and I have 2 separate portfolios. One is a long term growth dividend portfolio of stocks where i sell covered calls strategically and my 2nd portfolio is the Crypto trading strategy where its all about income. This year I am on pace to make $120K in realized options profits and around $869K in crypto profit... What is great is that my long-term portfolio is still up significantly as well. As such, it’s possible to generate excellent income but still have a total return perspective. ...Amidst this, the insights of a knowledgeable guide like that of Expert Shellane Maxwell can be crucial. Her expertise in navigating the nuances of trading has been the key for Me understanding and making the most of these emerging financial trends.
New survey has revealed rising adoption of cryptocurrency among the world billionaires, as they start experimenting in the digital currency, expanding their investments portfolio beyond traditional profitable assets.
I heard her strategies are really good, How do I reach your Coach/mentor.
I'm setting out 50k to invest in the market this December. Any particularly useful tips you could offer to me?
CAN”T SHARE MUCH HERE SHE’S MOSTLY ON TELEGRAMS WITH HER NAME.
@Shellanemaxwell she's verified
I've got 100K, at 4 percent, it doesn't seem to be doing anything much at all, and not even keeping up with inflation over the last 4 years.
In fact, I'm rather miffed people are borrowing my money at such a low rate of return.
So I'm always searching for something better.
The rule of 72: given an annual rate of return (r), how long (t) would it take to double an initial investment. t = 72/r. So, at 7% return, $10K would double in about 10 years. Your chart shows an order of magnitude growth in just 7.5 years, given a 7% return. How?
''Net Worth Skyrockets After $100k'' No, it really does not. It just *seems* more like it. the 5-digit numbers simply have an allure to them that the 4 digits do not have. If anything, *time* is the factor that makes your investments skyrocket, as it is the one factor that brings about the compounding in terms of yields.
This is gold! Just great information and knowledge!
Does investing in ETF’s give interest? How does compounding works when investing in ETF like VOO? Are there any specific ETFs need to invest in for compounding?
I would love more info on custodial controlled investment choices. I have an 11yr old with special needs so I want to make sure he is set up with income when he reaches retirement age.
Can you explain this? When you are investing in a mutual fund, where does the interest come from? Are you referring to dividends that few funds provide?
Took me 10 yrs to 100k, invested all of it, turned it to 400k in 5 yrs
I'd suggest next to talk about the different ways to invest, here are some ideas
ETF, Mutual, Index, Crypto, Real Estate, Roth, Brokerage, 401k
In my country (Philippines), a 0.5% management fee is already cheap, and I've looked! 1% is the average. 0.1%? Non-existent🤦♂. I guess I'll take what I can get.
I started putting money in 401k in 2012 at age of 35. In just 12 years I have portfolio of 700k. I think couple of more years to get to 1 Million. I probably would have touched million if I didn't try to time the market and sitting on cash for long durations.
Similar, although not from the U.S. Currently at £550k. Held back a total of £125k for 15-17 months until the whole lot went in. I stupidly listened to all the UA-cam videos saying a correction / crash was nailed on for 2023 and kept the powder dry expecting to buy significantly on the dip. Never again. I’d probably be about £600k now.
"The best time to plant a tree is 20 years ago, the second best time is today"
I agree! BUT, what are the safest investments to make to hit that 7% return?
***We are in our 60s. Our brand new home is paid off. We have no debts(ccards/car payments). We rent out a bedroom on Airbnb now for 3 yrs. We have a 12 mo. EFund. Whatelse can we do?? We have 4 sources of income: his SS, my SSDI, his pt job, our Airbnb monthly rental $$.***
Any tips?!
Great video. Love the discussion on fees an compound interest. Our investments earn more than us every year now and that's kinda crazy - snowball is indeed legit