@@plantingseedstv5138 yes. The first 10k was harder than 100k, and so on. Because as that compounding interest ball gets larger , you have to contribute less or nothing to get bigger and bigger returns
The easiest way to be a millionnaire in 10 years is to start investing aggressively at a young age. You wont be a millionnaire at the 10 year mark but you are guaranteed to be a millionaire when you ate gonna need it even if you stop investing after that 10 years. Time is the best tool to build wealth.
I did it! I started in 2008 with a negative net worth ($-20,000). I began by building an emergency fund and investing in index funds, but the thing that really did it was through real estate. I bought my first property in 2014. I saved for more down payments and also used cash-out refinances to buy more properties. By 2018, maybe 2019, I had a net worth of $1,000,0000. In 2023, I'm at around $2,000,000 (50% real estate, 35% index funds, 5% cash, 10% personal residence). Of course, I benefited from a great market (real estate and stocks), but I think I used a safe long-term strategy.
@@plantingseedstv5138 personally, I would not. I don’t want to refinance into higher rates (my current rates range from 3.5% to 6%). But, you do have to run the numbers. If you can increase cash flow by refinancing a property at a higher rate than you should do it, if it makes sense with your strategy. For me, I would rather raise funds and buy in cash now and then refinance those properties when the rates come down.
@siyano just because you are in debt (credit card balances, car loan, etc) doesn't mean you can't still set cash aside into investments while you are paying down that debt. In fact, a ton of people say to build your emergency fund while paying monthly minimums on debt. Then work on fully getting out of debt. So yeah, you cam def do both
For the "asking people for a dollar each day", there's something I do which I think actually works. I like to go busking. I'm making art, playing an instrument, or singing. If people like what I'm doing, I get a nice little bonus, plus it's an indicator to me that I'm doing a good job. I don't think I'll reach 1 million in 10 years doing this, but I do it because I love to do it and it helps me get better at my art forms. The money is just a cool side effect.
Entrepreneur here. It was more like 15 years to reach profitability. But it was a virtually 100% collected business in a growing community. Glad I did it. But it was tough at times.
Net worth over 1MM in 10 years? Yes, absolutely. It helps having dual income for most of that time 6 out of 10 years, white collar office jobs close to where you live, and only 1-2 kids coupled with relatively inexpensive child care. I cant imagine it being the same with 4 or 5 kids. But that means sacrifices, only 2 new average cars in that entire window. Limit consumer debt, and ALWAYS save some money per the FOO. I woulda been one in 10 years if I didn't have a negative networth for 2 years straight.
I think some of the best lessons from the content are regarding not just knowing the number but establishing a “why”. By doing the FOO my family is secure, we have end goals in ‘mind, and our money has purpose as a tool. It certainly challenges the modern day mindset.
My minimum monthly costs are close to $1,787. Most I could really invest would be about 3,300$/month but that's kind of cutting it close for after-tax dollars. > 2,000$ in brokerage. > 700$ in 401k > 583$ in Roth IRA I'm currently doing this: > 1,000$ in brokerage. > 700$ in 401k > 583$ in Roth IRA If I was to invest 3,000$ a month I should hit about 1mill in 10 years assuming a 10% annualized return based on my current investments. I may do that depending on how things go. I'm underpaid for my current position so would be easy to get another job for 30%+ more money, I just like being remote and it isn't super demanding work for me.
I refuse. All my investing needs to be spendable cash. For me that’s index funds that I can pull from and have it not change the quality of my own home.
I feel investors should focus on under-the-radar stocks, especially given the present rollercoaster nature of the stock market, because 35% of my $270k portfolio consists of plunging stocks that were once respected, and I'm at a loss for what to do now.
Lots of individuals undervalue the function of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for licenced advisors and found someone with the highest qualifications. Despite inflation, she has helped me increase my reserve from $275k to $850k.
Maria Leticia Monroe is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Under the radar stocks are much riskier than companies with established history’s. And stocks will go down, the market will crash. You have to take emotion out of investing if you want to invest successfully
I graduated college 9 years ago and my wife 12. We hit $1.1m combined in our 401k's this year, we each contribute near max. Its been a good 10 years - averaging 17% returns. Another 3-4 years like that and will hit $2m. We have another 20 years before retirement and at that rate would be $30m, although if/when we hit $10m I'm retiring early.
Small business owner here. It is very tough but incredibly rewarding, and since its likely in something you're passionate about its worth the trouble. I grew my business in my free time as a hobby after work and on weekends. Then when it started taking off I worked 70-80 hour weeks for years. Lots of sacrifice in there but I don't regret it at all. It definitely isn't all sunshine and rainbows, but for people with a burning desire to build something its an awesome journey.
it is certainly possible, but not always. It depends on the situation of the individual. To me, it isn't about getting to a dollar amount but about getting to a certain state of mind when it comes to my finances.
I started my transport company last year and the first year the company made 254k but I had about 150k worth of expenses but it’s a 70 hr a week 48 weeks of being on the road
Definitely! It took us 7 years, and we grew from $0 to $2M. Now, I'm in a position where I don't work solely for money. I left my job, began teaching at a university, and started creating videos to genuinely share the journey and what I've learned. It's been a heartfelt transformation. 💫📚🎥
I did the math on the asking 1M for a buck each. If you can get one person to give you a buck every 6 minutes of every waking hour for ten years, invested in a 10% average fund, you can a hit a million in ten years. Or you could invest $4882 a month from a job and have time to live.
thanks guys now Im maxing out my pretax $22500 roth $6500 and after tax $8500 and still saving $25000 cash annually at 24. Feel like im in a pretty good spot
Stock market wise you’d need to invest about 5,200 a month getting a 10% annual return to get to 1,000,000 dollars in 10 years, which isn’t plausible for most people. Though if you factor in compounding dividends being re-invested getting there in 15-20 years is doable, but you’re still going to have to invest a lot.
@@brianmcg321 They do if you are using DRIP. I have funds that use the dividends to buy more shares. When I retire, I will stop that and have the dividends come to my bank account.
Wife and I are both in management and own multiple rental properties, money. We invest a large portion of our income, discipline. We both went to college (4 years) and got married shortly after (6 years), time. When we got married we had negative net worth, now we have over a $1M; accelerated by real estate and high paying jobs. Is it possible, yes; would I say everyone can do it, clearly not.
When I was deciding what university to go to a lot of people were asking "Aren't you afraid to go there?" What was happening was I afraid to let the opportunity pass and NOT go there. I couldn't be happier with my decision 😁 I guess in a way it was FOMO but I knew the safer road was going to be harder.
The same person put all points into luck. After finishing the video, the last 1-5mins is killer, I couldn't agree more as I'm hopeful for the market in the next 40 years, I'm 28 now and seriously started investing into retirement about 2-3 years ago and I won't stop!
The best way to build wealth is to start at a young age. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a good book for new investors.
I bought a duplex a few years ago. It wasn't hard at all to find a lender willing to deal with me. If the numbers work, the numbers work. House hacking isn't really that hard/bad. You just have to find good people. If anything it was easier for me to close than if I had tried to buy a single family house because the underwriters were able to use some of the expected income to help me qualify for a better loan. They want to lend money. That is how they make money.
After a massive rally in stocks came and yields collapsed, bond yields and the major averages are higher on Wednesday. How do we deal with such market conditions? Typically my $2m worth of holdings go up 8% then lose 20% right after and the cycle continues.
Investors embracing the idea that abruptly cooling inflation will put interest rate hikes on ice. During recessions your dividend gains or income reduces. Speaking to a certified market strategist can help with navigating this downturn. A colleague proposed the idea of diversification to me, hopefully for positive results to offset any negative performance. At once, I backed it up using an advisor in order to avoid any fiasco. As of today, my portfolio has yielded over $450k in profits, from an initial $180k this year alone.
I'm being guided by “Laura Marie Keilman’’ who is widely recognized for her competence and expertise in the financial market. She has a thorough understanding of portfolio diversification and is regarded as an authority in this field.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
It took me 11-12 years working a blue collar job. That was having plenty of fun along the way. Could have done it a little faster if I were more intentional but I dont regret the experiences and still being a millionaire in my early 30s
House hack a 4 plex for 24 months, save up then buy a 3 plex that you move into and house hack that one while you rent out the last room in the 4 plex. Live in it for 2 years, then purchase a duplex, househack the duplex, then in another 2 years, purchase a single family home to live in...You'll have 9 rental units and a home, then wait...
Here is what I would consider a more realistic aggressive passive investment plan to get to taxes-paid $1m in 13 years: 1) start with $30k in a ROTH 401k 2) save $30k/ year in your ROTH 401k using regular and mega backdoor methods 3) increase savings 4%/year (e.g. from increased earnings) 4) assume 10% RoR 5) employer match may be part of the annual savings total, but must subtract future taxes to be paid (in reality despite new Roth option). 6) use 401k rule of 55 or become age 59.5 before withdrawing.
When I'm presented with an opportunity and take it I usually just get screwed, has happened to me several times with free opportunities, and two that I paid thousands, foreign scams. Yet when I get legit opportunities, I'm in no position economically or socially to go for them.
There is potential for considerable wealth increase with the correct strategy. I want to know; How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
A solid strategy can be a key component of an investor’s portfolio. Well, the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and mutual funds
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
I currently have 4500 shares of SCHD! My goal is 5k shares. This is my retirement plan!! My portfolio consists of 200 voo 200 vug 150 vgt 4500 SCHD! Is the future bright or not?
I inherited something similar but growth of is 4.74% in the past 12 months. In this environment does investing under a brokerage with a custodian outperform a 401k? should I seek a pro to grow my funds on brokerage acct or still hold? I have 5 years to retirement. Happy to discuss.
I'm 47 right now, I have about $62k in my federal TSP account, which my employer matches up to 5%. If I invest 15% of my income for the next 15 years, I will probably have around $800k just in that account alone. And that's not mentioning that my house will be paid off by then, another $250k into my net worth, plus my pention from work, which will be around $1200 per month. So my bet worth will be around $1 million at least. My Plan is to keep driving good reliable used vehicles $10k or less that I pay cash for and keep living in my modest home in San Antonio TX. So can I be worth $1 million in about 15 years? Most likely yes. It's just going to take time, discipline and money. And a good well paying job like mine. My base salary is $71k per year. Un my situation, I doubt I could make a million dollars from zero to 10 years . Unless I had a higher paying job. I have the option to do overtime, so I could hit $100k per year and clear about $80k, but it takes a toll on the body. I've done it before, but it's not easy. Great video as usual money guys!
It's incredibly "easy" (that is partial sarcasm, I will explain later) to become a milionare in 10 years working an average career job (60-80k). All you need to do is make one main lifestyle choice. You don't move out of your parents home. Assuming you have parents that are even willing to let you stay rent-free, you can allocate +80% of your take home pay to investments, with the remainder going to food, your car, cellular, and that's about it. The reason I say "easy" is while this is simple and very effective, it comes with the * of being a total social outcast. You will be heavily judged by friends and family alike, and you are also sacrificing any chance at starting a family of your own in those first 10 years. Personally I did this for 3 years. It's enough to build a very nice safety net to grow upon and the social outcast part is backloaded so it wasn't to bad for my mental health. It's just a shame how stigmatized this is in America when it is SUCH a helpful way to kickstart your wealth.
Real estate is a job. If you already have a job and just want to go to sleep after your 8 hours a day, you will not enjoy being a real estate owner. Stocks do not need maintenance or upkeep.
9:44 Don't buy your first house in 2007 with 0% down on an ARM...ask me how i know. Barely held on to it but now I've moved out of state so it's a rental for me. Worked out in the end but it was tough for several years to climb out of that hole sans bankruptcy.
Money Guys, I’m surprised you don’t strongly recommend a higher than 25% savings rate for high income earners. For individuals making more than 200k/year, spending 75% on needs and wants seems like a breach of the Discipline component of wealth building. It locks that individual into the standard 3 decade career timeline, which might be hard to maintain at that high level of productivity. It also locks them into a high speed hedonic treadmill.
I haven’t watched the video yet, but this is my take: Absolutely you can, if you are starting from $0(no debt) and you have a career with an average or higher income. Step 1: save down payment for house Step 2: buy house you can comfortably afford Step 3: invest 25% of income in index funds averaging 10% per year. Step 4: pay off mortgage as early as possible with the rest of your cash $2000/mo into investment compounding daily for 10 years is $412,000 + A $350,000 home today will be ~$600,000 in a decade theoretically and if you were paying it off early, you’ll have maybe $50,000 left on the mortgage and $550,000 in equity. That puts you right at the cusp of $1 million in 10 years as an average American.
if you live in a multfamily you can use your FHA loan to do 3.5% down, you pay allot of PMI and you have to refinance to get rid of it but its possible.
Lending rules: A 2-4 unit property that will be a primary residence only requires a 5% down payment. If investment property, requires 25% down payment.
I mean, as a full time uber driver for the past 6 years, i definitely appreciate the "only an uber driver", while laughing, remark 😬. Totally didn't kill any momentum this video had given. Seriously, i dont get people who crap on others for the work/job they do. It's ridiculous.
Hello Money Guys! I am a senior in college! I have been working in college and have saved up as much as I can! I have a maxed out Roth IRA for 2023 and am ready to max it out for 2024. I am extremely interested in house hacking but I don’t know if I will be fully employed next year or not! Can you give me some advice of what I should be doing?
Very nice! Are you trying to go high risk in your Roth or conservative? If you can get something by a large medical center, especially if it’s like a 3/3, you can rent 1/1 to travel nurses, 1/1 to a friend or just someone and have the other 1/1 to yourself. In my area, you can get this setup for around $400k, get around $1500/month from nurse and like $750/month from person who does a full year lease. If you can put 20% down, those two should about cover your mortgage.
You need cash reserve to invest in real estate safely. My wife and I made this rule that we have to have $100k I liquidity to buy the next house and 20% in equity in the recently purchased house
My wife and I make quite a bit through our W-2 jobs. We have been stashing money away in IRAs, 401ks, and an after tax brokerage. She recently changed jobs and now has a pension - I have no idea how pensions work and how I should calculate it into our savings goals. Has the Money Guy Show done anything on pensions?
Generally a pension pays out a set percentage of your wage every year after retirement. It's usually a set # of years before you are fully vested 5-10 for jobs like schools. For my job I must work 30yrs to get 100% on my retirement. It's based off my last 3 yrs of pay. Yearly the fund determines a COLA adjustment which can be anywhere from .5-3% depending on inflation and the strength of the fund. You and your wife should sit down with the person in charge of that fund at your wife's job. They can show you the exact projections. I get an annual statement that shows how much I will receive depending on year I chose to retire.
Points all well taken but what I would like to say, in the real estate examples, you are assuming that you’re going to live in the house in your first example and excluding the fact that the renter is paying the mortgage - accelerating the gain, and all the depreciation. Then, on the house hack you are excluding the fact that you have to pay to live somewhere anyway. So you’d be paying rent, which is money out of pocket but you are saying that’s going to “waste” in the mortgage and you could be investing it but you couldn’t because it would be going to a loan slots for rent.
A million in 10 years is actually easy. Just make 200K a year, and invest half of it. The hard part is making 200K a year. For the average person making an average income of 60K a year though, its not possible unless you get extremely lucky with investment.
Definitely possible. I graduated 7 years ago with $0 to my name and I'm at ~$800K now. I'm guessing I should hit $1M next year. But I don't think it's easy, I've had a lot of career success and I am very frugal
Your investment returns are a little optimistic don't you think? Especially because we are coming out a free money era where capital was so cheap. I would say that 6% is probably more realistic if you're going into a widely diversified fund. By my calculations, you'd need $6103/month
I dont believe its possible to start with an actual 0$ with 0, you cant do anything, you cant start a business, you cant invest, so how can you leverage 0 to anything without even some kind of back up, you will need to work to have some kind of say, a few thousand to start small business to start selling yourself and such. people saying they did was not from an actual 0$, they had some kind of leverage somewhere. if you own nothing and you have less than 1k$ in your saving, beside having a well paid job to back you, its just not feasible.
We made it in six years… but only because of really good jobs, lifetime low rates and the once in a lifetime housing market those rates created… we’d be 7/10 of the way there with just normal trends
💰💰Only way to achieve that is on a 130k and up salary. $70k(5833/mo) yearly at 8% return will yield just over $1million. $30k for taxes/health ins/etc and $30k(2500/mo) to live on for housing/food/transportation in a Low cost of Living area.
I have a burning retirement question. If my husband and I have a little under 300000 in RRSPs, around $160,000 in Company stock, if we bump up our retirement fund to 2000 month will that give us the magical number of 1.2 million for our retirement? Oh yeah we’re 53.
Using a compound interest calculator on the 2k/month at 10% interest per year gives you almost 400k. Added to the rest of your Investments you should be fine. That's assuming the other Investments also grow over the next 10 years of course.
Assuming your 460k has ten years to grow? You don’t need to touch any of it and you will be a millionaire just with it staying in the s and p/american market
Absolutely right. Don’t count your primary residence as an investment. If you’re ever thinking of leveraging your home to get wealthy, you’ll be chasing your tail forever
I bought my house in 2015. It is still worth the same amount as it was then. It is also asking for 30 000 in renovations. How the hell does someone even make a profit in real estate? Sounds to me like people who got lucky with rising values who promote it. People like me are just losing money.
@@stephaniel6867 isn't that like picking stocks? Who'd voluntarily buy a house from an area where houses didn't go up in price? If we can't pick winning stocks, what makes you think we can pick areas of growth?
I'm beginning to love your content. The factual analysis is constructive. The only thing that kind of stops me from finishing the video is the slight high-pitched grating voice of the guy in orange. I think a slight lowering of his modulation would make it more bearable. Or speaking slower and more relaxed would bring in more bass in his voice. Otherwise, it's a great channel, and I am looking forward to more helpful data.
Becoming a millionaire in 10 years just off investing is surprisingly achievable. A bit under $60k a year is doable for many people especially married couples who both work fairly high paying jobs and live frugally. Certainly if they don't have kids or the kids have already moved out. If you each earn 80k that's 160k combined for about 110k after taxes, you could easily live off 50k and invest 60k. If you use 401ks to the max then do the extra in Roth or after tax that puts your living budget up to a bit over 60k while still saving 60k. A single person earning 150k+ can do about the same thing, they'll pay a bit more taxes but can probably get by on lower living expenses.
Idk I guess I can try. I'll let you know in a decade, pin this comment, and if it everything still exists, and I'll be back in 2033 and let you know if it's possible
I’ve done a little over quarter million in 5 years as a construction worker between retirement account, stocks, and real estate
The next quarter million will show up in less than 3 years
good effort dude
We did it in 14 years. 7 years after that, we are crossing the 2 million mark. It's all good !
Would you say the 1st million was harder than the 2nd one?
@@plantingseedstv5138 yes. The first 10k was harder than 100k, and so on. Because as that compounding interest ball gets larger , you have to contribute less or nothing to get bigger and bigger returns
We? So two incomes? Then the challenge should be 5 years
The easiest way to be a millionnaire in 10 years is to start investing aggressively at a young age. You wont be a millionnaire at the 10 year mark but you are guaranteed to be a millionaire when you ate gonna need it even if you stop investing after that 10 years. Time is the best tool to build wealth.
I did it! I started in 2008 with a negative net worth ($-20,000). I began by building an emergency fund and investing in index funds, but the thing that really did it was through real estate. I bought my first property in 2014. I saved for more down payments and also used cash-out refinances to buy more properties. By 2018, maybe 2019, I had a net worth of $1,000,0000. In 2023, I'm at around $2,000,000 (50% real estate, 35% index funds, 5% cash, 10% personal residence). Of course, I benefited from a great market (real estate and stocks), but I think I used a safe long-term strategy.
Awesome! When’s a good time to use cash out refinances to get more properties? Does it make sense to do this during the current state of the economy ?
@@plantingseedstv5138 personally, I would not. I don’t want to refinance into higher rates (my current rates range from 3.5% to 6%). But, you do have to run the numbers. If you can increase cash flow by refinancing a property at a higher rate than you should do it, if it makes sense with your strategy. For me, I would rather raise funds and buy in cash now and then refinance those properties when the rates come down.
how did you invest and such if you were in 20k in debt, something not adding up here
@siyano just because you are in debt (credit card balances, car loan, etc) doesn't mean you can't still set cash aside into investments while you are paying down that debt. In fact, a ton of people say to build your emergency fund while paying monthly minimums on debt. Then work on fully getting out of debt. So yeah, you cam def do both
For the "asking people for a dollar each day", there's something I do which I think actually works. I like to go busking. I'm making art, playing an instrument, or singing. If people like what I'm doing, I get a nice little bonus, plus it's an indicator to me that I'm doing a good job. I don't think I'll reach 1 million in 10 years doing this, but I do it because I love to do it and it helps me get better at my art forms. The money is just a cool side effect.
Exactly, fun thing + sometimes some money
“Math Crimes” is my new, favorite term for our age.
Entrepreneur here. It was more like 15 years to reach profitability. But it was a virtually 100% collected business in a growing community. Glad I did it. But it was tough at times.
Net worth over 1MM in 10 years? Yes, absolutely. It helps having dual income for most of that time 6 out of 10 years, white collar office jobs close to where you live, and only 1-2 kids coupled with relatively inexpensive child care. I cant imagine it being the same with 4 or 5 kids.
But that means sacrifices, only 2 new average cars in that entire window. Limit consumer debt, and ALWAYS save some money per the FOO.
I woulda been one in 10 years if I didn't have a negative networth for 2 years straight.
I think some of the best lessons from the content are regarding not just knowing the number but establishing a “why”. By doing the FOO my family is secure, we have end goals in ‘mind, and our money has purpose as a tool. It certainly challenges the modern day mindset.
My minimum monthly costs are close to $1,787.
Most I could really invest would be about 3,300$/month but that's kind of cutting it close for after-tax dollars.
> 2,000$ in brokerage.
> 700$ in 401k
> 583$ in Roth IRA
I'm currently doing this:
> 1,000$ in brokerage.
> 700$ in 401k
> 583$ in Roth IRA
If I was to invest 3,000$ a month I should hit about 1mill in 10 years assuming a 10% annualized return based on my current investments.
I may do that depending on how things go. I'm underpaid for my current position so would be easy to get another job for 30%+ more money, I just like being remote and it isn't super demanding work for me.
I became a millionaire in 11 years, but about 1/2 of it was due to home prices getting jacked up in the last couple of years.
Me 2!!
We did it in 10 years, mostly due to real estate as well. We have 3 rentals and 1 primary.
I refuse. All my investing needs to be spendable cash. For me that’s index funds that I can pull from and have it not change the quality of my own home.
Do you still have a mortgage?
Same, My wife and I got to a million net worth in 8 years but $500,000 of that is in real estate appreciation in the last few years
I feel investors should focus on under-the-radar stocks, especially given the present rollercoaster nature of the stock market, because 35% of my $270k portfolio consists of plunging stocks that were once respected, and I'm at a loss for what to do now.
Lots of individuals undervalue the function of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for licenced advisors and found someone with the highest qualifications. Despite inflation, she has helped me increase my reserve from $275k to $850k.
I am seriously devoted to creating a stable financial future and am thrilled to participate.
Maria Leticia Monroe is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Stupid bot comments.
Under the radar stocks are much riskier than companies with established history’s. And stocks will go down, the market will crash. You have to take emotion out of investing if you want to invest successfully
I graduated college 9 years ago and my wife 12. We hit $1.1m combined in our 401k's this year, we each contribute near max. Its been a good 10 years - averaging 17% returns. Another 3-4 years like that and will hit $2m. We have another 20 years before retirement and at that rate would be $30m, although if/when we hit $10m I'm retiring early.
Small business owner here. It is very tough but incredibly rewarding, and since its likely in something you're passionate about its worth the trouble. I grew my business in my free time as a hobby after work and on weekends. Then when it started taking off I worked 70-80 hour weeks for years.
Lots of sacrifice in there but I don't regret it at all. It definitely isn't all sunshine and rainbows, but for people with a burning desire to build something its an awesome journey.
it is certainly possible, but not always. It depends on the situation of the individual. To me, it isn't about getting to a dollar amount but about getting to a certain state of mind when it comes to my finances.
I just want to pay off my house and have a net worth of around $1 million. I got about 15 years to achieve my financial goals. Cheers. Good luck 👍
I started my transport company last year and the first year the company made 254k but I had about 150k worth of expenses but it’s a 70 hr a week 48 weeks of being on the road
@@travispalaszewski9799 Proof that there is no such thing as a free lunch :)
Definitely! It took us 7 years, and we grew from $0 to $2M. Now, I'm in a position where I don't work solely for money. I left my job, began teaching at a university, and started creating videos to genuinely share the journey and what I've learned. It's been a heartfelt transformation. 💫📚🎥
I think they mean one income in 10 years. If there are two incomes then it should be 5 years.
My wife and I are at $500k net worth less than 5 years out of college. We weren't at 0 when we graduated, but I think we are on track as a household.
How much of that is home appreciation. And of course that’s 250k per person.
Nobody splits net worth between spouses. @@devenmurray3580
@@devenmurray3580 $500k if we value our home at what we paid for it. Probably closer to $550k if you include the appreciation.
@@devenmurray3580 ok
I am alone @ 335k net worth in 12 years working night at a warehouse here in Sweden which pays good money. About 55-60k per year pre-tax
I did the math on the asking 1M for a buck each. If you can get one person to give you a buck every 6 minutes of every waking hour for ten years, invested in a 10% average fund, you can a hit a million in ten years.
Or you could invest $4882 a month from a job and have time to live.
i havent been able to watch this episode yet, but i know bo is so excited about this
. 😁😁
Omg how did you know?!! 🤣🤭
I am sure he luvs it too.
Bo is the most excited guy of youtube
thanks guys now Im maxing out my pretax $22500 roth $6500 and after tax $8500 and still saving $25000 cash annually at 24. Feel like im in a pretty good spot
Uh, yeah…you’ll be a multimillionaire in your 50’s. Sow your seeds early.
Stock market wise you’d need to invest about 5,200 a month getting a 10% annual return to get to 1,000,000 dollars in 10 years, which isn’t plausible for most people. Though if you factor in compounding dividends being re-invested getting there in 15-20 years is doable, but you’re still going to have to invest a lot.
It's the total return. Not "compounding dividends". Dividends are just a part of your return. It doesn't add anything to your account.
@@brianmcg321 They do if you are using DRIP. I have funds that use the dividends to buy more shares. When I retire, I will stop that and have the dividends come to my bank account.
@@brianmcg321most investment platform give you the option to auto reinvest dividends
15-20 years can be done with $1000/month & a few times above $1000
(Strictly $1000/mo will be about 22 years)
Wife and I are both in management and own multiple rental properties, money. We invest a large portion of our income, discipline. We both went to college (4 years) and got married shortly after (6 years), time. When we got married we had negative net worth, now we have over a $1M; accelerated by real estate and high paying jobs. Is it possible, yes; would I say everyone can do it, clearly not.
So... you're telling me there's a chance?
I'm gonna do all of these strategies at once so I can be a multi millionaire in 10 years or less 🚀🚀🚀
May I have $20? 😂
Only a hundred people left to ask today😅
Most people aren't even starting from $0 haha. Starting the negatives
When I was deciding what university to go to a lot of people were asking "Aren't you afraid to go there?" What was happening was I afraid to let the opportunity pass and NOT go there.
I couldn't be happier with my decision 😁
I guess in a way it was FOMO but I knew the safer road was going to be harder.
The same person put all points into luck.
After finishing the video, the last 1-5mins is killer, I couldn't agree more as I'm hopeful for the market in the next 40 years, I'm 28 now and seriously started investing into retirement about 2-3 years ago and I won't stop!
The best way to build wealth is to start at a young age. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a good book for new investors.
Good show, but it wouldnt hurt to inflation adjust the 1milion in 10 years, it will demand a higher savings rate to end up where you set of to :)
Just read Wall Street bets, right? 🙃
LoL
I bought a duplex a few years ago. It wasn't hard at all to find a lender willing to deal with me. If the numbers work, the numbers work. House hacking isn't really that hard/bad. You just have to find good people. If anything it was easier for me to close than if I had tried to buy a single family house because the underwriters were able to use some of the expected income to help me qualify for a better loan. They want to lend money. That is how they make money.
After a massive rally in stocks came and yields collapsed, bond yields and the major averages are higher on Wednesday. How do we deal with such market conditions? Typically my $2m worth of holdings go up 8% then lose 20% right after and the cycle continues.
Investors embracing the idea that abruptly cooling inflation will put interest rate hikes on ice. During recessions your dividend gains or income reduces. Speaking to a certified market strategist can help with navigating this downturn. A colleague proposed the idea of diversification to me, hopefully for positive results to offset any negative performance. At once, I backed it up using an advisor in order to avoid any fiasco. As of today, my portfolio has yielded over $450k in profits, from an initial $180k this year alone.
impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now
I'm being guided by “Laura Marie Keilman’’ who is widely recognized for her competence and expertise in the financial market. She has a thorough understanding of portfolio diversification and is regarded as an authority in this field.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Scam
My wife and I got to a million net worth in 8 years but $500,000 of that is in real estate appreciation in the last few years
Do you still have a mortgage?
@@IrisP989 I sure do
@@peternguyen1911 We also have mortgages. Crossed $1M net worth a few months ago at the age of 37 and 38.
It took me 11-12 years working a blue collar job. That was having plenty of fun along the way. Could have done it a little faster if I were more intentional but I dont regret the experiences and still being a millionaire in my early 30s
House hack a 4 plex for 24 months, save up then buy a 3 plex that you move into and house hack that one while you rent out the last room in the 4 plex. Live in it for 2 years, then purchase a duplex, househack the duplex, then in another 2 years, purchase a single family home to live in...You'll have 9 rental units and a home, then wait...
Yes, I did it.
Easy. Get a job that pays $500k a year! Less than 10 years!
Here is what I would consider a more realistic aggressive passive investment plan to get to taxes-paid $1m in 13 years:
1) start with $30k in a ROTH 401k
2) save $30k/ year in your ROTH 401k using regular and mega backdoor methods
3) increase savings 4%/year (e.g. from increased earnings)
4) assume 10% RoR
5) employer match may be part of the annual savings total, but must subtract future taxes to be paid (in reality despite new Roth option).
6) use 401k rule of 55 or become age 59.5 before withdrawing.
It's possible and I will make everything to achieve it
What if you only have 10 years and you’re just getting started, and we are in the current market we’re in?
When I'm presented with an opportunity and take it I usually just get screwed, has happened to me several times with free opportunities, and two that I paid thousands, foreign scams. Yet when I get legit opportunities, I'm in no position economically or socially to go for them.
There is potential for considerable wealth increase with the correct strategy. I want to know; How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
A solid strategy can be a key component of an investor’s portfolio. Well, the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals.
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and mutual funds
Pls who is this Advisor that guides you? I’m in dire need of one
*Sharon Louise Count* does a good job. She is quite the genius in portfolio diversification. You can look her up on the web as she is SEC regulated.
SCAM
@@Redwood4040
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
I currently have 4500 shares of SCHD! My goal is 5k shares. This is my retirement plan!! My portfolio consists of 200 voo 200 vug 150 vgt 4500 SCHD! Is the future bright or not?
Bother less and enhjoy the time you have left.
I inherited something similar but growth of is 4.74% in the past 12 months. In this environment does investing under a brokerage with a custodian outperform a 401k? should I seek a pro to grow my funds on brokerage acct or still hold? I have 5 years to retirement. Happy to discuss.
I'm 47 right now, I have about $62k in my federal TSP account, which my employer matches up to 5%. If I invest 15% of my income for the next 15 years, I will probably have around $800k just in that account alone. And that's not mentioning that my house will be paid off by then, another $250k into my net worth, plus my pention from work, which will be around $1200 per month. So my bet worth will be around $1 million at least. My Plan is to keep driving good reliable used vehicles $10k or less that I pay cash for and keep living in my modest home in San Antonio TX. So can I be worth $1 million in about 15 years? Most likely yes. It's just going to take time, discipline and money. And a good well paying job like mine. My base salary is $71k per year. Un my situation, I doubt I could make a million dollars from zero to 10 years . Unless I had a higher paying job. I have the option to do overtime, so I could hit $100k per year and clear about $80k, but it takes a toll on the body. I've done it before, but it's not easy. Great video as usual money guys!
It's incredibly "easy" (that is partial sarcasm, I will explain later) to become a milionare in 10 years working an average career job (60-80k). All you need to do is make one main lifestyle choice. You don't move out of your parents home. Assuming you have parents that are even willing to let you stay rent-free, you can allocate +80% of your take home pay to investments, with the remainder going to food, your car, cellular, and that's about it.
The reason I say "easy" is while this is simple and very effective, it comes with the * of being a total social outcast. You will be heavily judged by friends and family alike, and you are also sacrificing any chance at starting a family of your own in those first 10 years.
Personally I did this for 3 years. It's enough to build a very nice safety net to grow upon and the social outcast part is backloaded so it wasn't to bad for my mental health. It's just a shame how stigmatized this is in America when it is SUCH a helpful way to kickstart your wealth.
Real estate is a job. If you already have a job and just want to go to sleep after your 8 hours a day, you will not enjoy being a real estate owner. Stocks do not need maintenance or upkeep.
9:44 Don't buy your first house in 2007 with 0% down on an ARM...ask me how i know. Barely held on to it but now I've moved out of state so it's a rental for me. Worked out in the end but it was tough for several years to climb out of that hole sans bankruptcy.
Money Guys, I’m surprised you don’t strongly recommend a higher than 25% savings rate for high income earners. For individuals making more than 200k/year, spending 75% on needs and wants seems like a breach of the Discipline component of wealth building. It locks that individual into the standard 3 decade career timeline, which might be hard to maintain at that high level of productivity. It also locks them into a high speed hedonic treadmill.
They do recommend more if you CAN
I haven’t watched the video yet, but this is my take:
Absolutely you can, if you are starting from $0(no debt) and you have a career with an average or higher income.
Step 1: save down payment for house
Step 2: buy house you can comfortably afford
Step 3: invest 25% of income in index funds averaging 10% per year.
Step 4: pay off mortgage as early as possible with the rest of your cash
$2000/mo into investment compounding daily for 10 years is $412,000
+
A $350,000 home today will be ~$600,000 in a decade theoretically and if you were paying it off early, you’ll have maybe $50,000 left on the mortgage and $550,000 in equity.
That puts you right at the cusp of $1 million in 10 years as an average American.
if you live in a multfamily you can use your FHA loan to do 3.5% down, you pay allot of PMI and you have to refinance to get rid of it but its possible.
Step one find a high paying job.
99% already fail at step one.
Lending rules:
A 2-4 unit property that will be a primary residence only requires a 5% down payment.
If investment property, requires 25% down payment.
I mean, as a full time uber driver for the past 6 years, i definitely appreciate the "only an uber driver", while laughing, remark 😬. Totally didn't kill any momentum this video had given.
Seriously, i dont get people who crap on others for the work/job they do. It's ridiculous.
Hello Money Guys! I am a senior in college! I have been working in college and have saved up as much as I can! I have a maxed out Roth IRA for 2023 and am ready to max it out for 2024. I am extremely interested in house hacking but I don’t know if I will be fully employed next year or not! Can you give me some advice of what I should be doing?
Very nice! Are you trying to go high risk in your Roth or conservative? If you can get something by a large medical center, especially if it’s like a 3/3, you can rent 1/1 to travel nurses, 1/1 to a friend or just someone and have the other 1/1 to yourself. In my area, you can get this setup for around $400k, get around $1500/month from nurse and like $750/month from person who does a full year lease. If you can put 20% down, those two should about cover your mortgage.
One of the best videos so far
Absolutely possible! Just let me pick which 10-year period we’re looking at…
Yup! It’s easy, as long as the 10 years do not have to be consecutive 🤪🤪🤪
You need cash reserve to invest in real estate safely. My wife and I made this rule that we have to have $100k I liquidity to buy the next house and 20% in equity in the recently purchased house
My wife and I make quite a bit through our W-2 jobs. We have been stashing money away in IRAs, 401ks, and an after tax brokerage. She recently changed jobs and now has a pension - I have no idea how pensions work and how I should calculate it into our savings goals. Has the Money Guy Show done anything on pensions?
Generally a pension pays out a set percentage of your wage every year after retirement. It's usually a set # of years before you are fully vested 5-10 for jobs like schools. For my job I must work 30yrs to get 100% on my retirement. It's based off my last 3 yrs of pay. Yearly the fund determines a COLA adjustment which can be anywhere from .5-3% depending on inflation and the strength of the fund. You and your wife should sit down with the person in charge of that fund at your wife's job. They can show you the exact projections. I get an annual statement that shows how much I will receive depending on year I chose to retire.
They have lots of shorts on that question. Just search. Others do as well
Points all well taken but what I would like to say, in the real estate examples, you are assuming that you’re going to live in the house in your first example and excluding the fact that the renter is paying the mortgage - accelerating the gain, and all the depreciation. Then, on the house hack you are excluding the fact that you have to pay to live somewhere anyway. So you’d be paying rent, which is money out of pocket but you are saying that’s going to “waste” in the mortgage and you could be investing it but you couldn’t because it would be going to a loan slots for rent.
A million in 10 years is actually easy. Just make 200K a year, and invest half of it. The hard part is making 200K a year. For the average person making an average income of 60K a year though, its not possible unless you get extremely lucky with investment.
Definitely possible. I graduated 7 years ago with $0 to my name and I'm at ~$800K now. I'm guessing I should hit $1M next year. But I don't think it's easy, I've had a lot of career success and I am very frugal
You must have a nice income to reach that level of success at such a young age.
Do you have a mortgage or a car loan?
How much do you make to be able to do this?
Step 1: get elected into Congress
Step 2: be courpt
Done
I did it but I got lucky with timing and buying rental properties, can it be replicated maybe in another location not where I invested
Just save 100k/year. StOp BeiNg PoOr
Lol
Your investment returns are a little optimistic don't you think? Especially because we are coming out a free money era where capital was so cheap. I would say that 6% is probably more realistic if you're going into a widely diversified fund. By my calculations, you'd need $6103/month
I dont believe its possible to start with an actual 0$
with 0, you cant do anything, you cant start a business, you cant invest, so how can you leverage 0 to anything without even some kind of back up, you will need to work to have some kind of say, a few thousand to start small business to start selling yourself and such.
people saying they did was not from an actual 0$, they had some kind of leverage somewhere.
if you own nothing and you have less than 1k$ in your saving, beside having a well paid job to back you, its just not feasible.
We made it in six years… but only because of really good jobs, lifetime low rates and the once in a lifetime housing market those rates created… we’d be 7/10 of the way there with just normal trends
I have no passion for anything that adds value to others...makes work difficult.
If all you had to do was ask for a dollar from people homelessness wouldn't exist.
Yeah so true. Getting paid well seems like such an ordeal I just can't understand these UA-cam people.
FHA will back a multi-family, for sure. With 3.% down
Great video!
15-20% minimum for a down payment on any home under 500k...going for a million...likely even higher as it is a higher risk.
How much money should you invest to make it to a million in 5, 10,15 20,25 years?
💰💰Only way to achieve that is on a 130k and up salary. $70k(5833/mo) yearly at 8% return will yield just over $1million. $30k for taxes/health ins/etc and $30k(2500/mo) to live on for housing/food/transportation in a Low cost of Living area.
I have a burning retirement question. If my husband and I have a little under 300000 in RRSPs, around $160,000 in Company stock, if we bump up our retirement fund to 2000 month will that give us the magical number of 1.2 million for our retirement? Oh yeah we’re 53.
Using a compound interest calculator on the 2k/month at 10% interest per year gives you almost 400k. Added to the rest of your Investments you should be fine. That's assuming the other Investments also grow over the next 10 years of course.
Assuming your 460k has ten years to grow? You don’t need to touch any of it and you will be a millionaire just with it staying in the s and p/american market
You can do retirement catch up up to $30k each year until 2026 for age 50 years or older.
Sell that single stock stuff(very risky) and put it into a good mutual/index fund that has had 10% or more returns over the course of its life.
A dollar and a dream.
Who on earth is getting 10% returns on index funds post 2020
Got 24% last year alone…
Easy said than done
The easiest way to become a millionaire is to convert your currency to dong. $40 dollars is $1,000,000 dong.
😂
If youre eligible for a VA loan you can buy a multifamily home with 0 down and a lower 8nterest rate.
2-4 units
The only Bo-Zo I listen to is Bo 💪😄
Yes.
If you are a net worth millionaire you aren’t a millionaire….if you have a million dollars in your bank account that’s yours, you are a millionaire
Absolutely right. Don’t count your primary residence as an investment. If you’re ever thinking of leveraging your home to get wealthy, you’ll be chasing your tail forever
“From $0 to one million dollars in 10 years (Is it possible?). Sure is, it’s even possible overnight by playing the lottery.
It took me 11 years. Started at 23. Networth millionaire at 34. Lost $200k along the way too 😬
Challenge accepted
Is Bo ever NOT so excited today?!
I bought my house in 2015. It is still worth the same amount as it was then. It is also asking for 30 000 in renovations. How the hell does someone even make a profit in real estate? Sounds to me like people who got lucky with rising values who promote it. People like me are just losing money.
The goal is to purchase in an area where prices will increase. My home has doubled plus some in the few years I've been here.
@@stephaniel6867 isn't that like picking stocks? Who'd voluntarily buy a house from an area where houses didn't go up in price? If we can't pick winning stocks, what makes you think we can pick areas of growth?
@latuman if that's the approach you're taking, sure! It's not the same though but have a great day.
@@stephaniel6867 why not?
@@latumanlocation location location
I'm beginning to love your content. The factual analysis is constructive. The only thing that kind of stops me from finishing the video is the slight high-pitched grating voice of the guy in orange. I think a slight lowering of his modulation would make it more bearable. Or speaking slower and more relaxed would bring in more bass in his voice. Otherwise, it's a great channel, and I am looking forward to more helpful data.
Cash millionaire is where it’s at. The faster way is to learn a high paying skill and crush it.
Becoming a millionaire in 10 years just off investing is surprisingly achievable. A bit under $60k a year is doable for many people especially married couples who both work fairly high paying jobs and live frugally. Certainly if they don't have kids or the kids have already moved out. If you each earn 80k that's 160k combined for about 110k after taxes, you could easily live off 50k and invest 60k. If you use 401ks to the max then do the extra in Roth or after tax that puts your living budget up to a bit over 60k while still saving 60k. A single person earning 150k+ can do about the same thing, they'll pay a bit more taxes but can probably get by on lower living expenses.
Can't be right. The median numbers suggest almost 1/2 of seniors have 400K and less.... Nope anyone telling you that is up to something....
Idk I guess I can try.
I'll let you know in a decade, pin this comment, and if it everything still exists, and I'll be back in 2033 and let you know if it's possible
If I become a millionaire and it's in my 401k am I really a millionaire? I won't be able to touch it until I'm old.
No.
Yes. The point of 401ks are for retirement. You can also pull money from it although I wouldn't suggest it.
I try to max Roth IRA every year. Any money left over should I put it in a brokerage account?
Lets smash that like button fellas.
If you’re dual income then the challenge is five years
I was able to do this without home appreciation in 15 years
Most businesses fail. Those that make it. Has owners that are putting in mega hours.
Never start a video with somebody yelling at you