I came here to knock the video due to the thumbnail... But yeah, the math here is sound. I mean, the idea of stock picking for a 2-3x return is a bit of an unrealistic expectation every year, and will probably even out with loosing picks to bring the average back in line... But outside of that, this video is spot on. My kids are just starting to hit those middleschool years, and I am trying to lay that foundation of understanding and expectations that when they do start working, to start investing aggressively and early. They may not want to live with mom and dad forever, but as long as they are aggressive savers and building wealth, then they are more than welcome to live with us as long as they want. We are even considering doing at least a partial "match" for their Roth when they start working to help them put their money towards other things that they need as a young adult (like a car, furnature fund, future house down payment, etc). Because at a young age, maxing out your Roth nearly guarantees that you have half a million dollars by retirement. Do that for 4-5 years and you should have an easy $2M by retirement age. Even with inflation, that is enough safety net so that they can have a basic retirement safety net in place. $2M won't be crazy money in 60 years when they retire, but it will be enough to put a roof over their head, keep the lights on, and keep food on the table. As long as they continue investing, even a little bit, then they will have an awesome life ahead of them. This last year I turned 40... And man did I get a late start lol. I did get into a house early, but I had a ton of debt early on, and wasn't in a career with any kind of retirement plan options, so I didn't really start saving until 35... But as we paid off debts we saved extremely aggressively to make up for lost time. In the last 5 years, through a lot of hard work and sacrifice, we have made up for the last 15 years of not investing. The temptation is to say we are caught up, and to enjoy our income now that we are caught up to where we ought to be... But we still have 20-25 years of compounding ahead of us. Continuing to sacrifice and save aggressively for another 5 years should put us in a place where we hit critical mass. It is the point where even if we stopped investing, it should compound the rest of the way to our goal for our current lifestyle. We can then step waaaay back and either work a lot less to maintain our current lifestyle and not worry about retirement investing for 20 years. Or we can keep working hard, save only 10%, and continue growing retirement to the expanded lifestyle target. Both of those options sound amazing to me! So we continue with the sacrifice. The one thing I wonder though is the goal of building wealth significantly beyond needs. I mean, if I have $2.5M in retirement then I'll never run out with my current lifestyle, even when accounting for inflation, and not factoring in any kind of social security. If we continued to save like crazy, I kind of fail to see the point. I could potentially hit $10M if I really tried... But... Why? My goal with money is security and safety. Accumulating significantly beyond that doesn't provide more security (security theater maybe), so all things equal I would rather spend that money on making my world a better place. Money for it's own sake is fine if you genuinely enjoy the game of it. But most of us have other goals.
The math is not sound it is a mathematical impossibility for compounding to occur in the markets due to the fact that all gains must be locked in for them to compound, which can never occur in a fluctuating market. It is a lie perpetuated by financial planners and Wall Street forever and there should be a lawsuit filed with the SEC to disallow it.
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 follow 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.
Uncertainty... it took me 3 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 3 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Annette Marie Holt, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, “Rebecca Nassar Dunne” turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I want to invest roughly $700,000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?.
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. Patience and a long-term perspective are key. You should consider a market expert to guide you.
that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+
“Rebecca Nassar Dunne”’ 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.
Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as stock, EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE
True. My portfolio was diversified across several markets with the help of a financial planner, and were able to achieve over a million in net profit among high dividend yield equities, ETFs, and bonds. It is vital that you have a variety of exposure, including in firms that are currently generating cash flows.
'Laurelyn Gross Pohlmeier' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this advice. Very useful. I live frugally and I was able to save up to 40k, alongside my wife, and we invested the money. The portfolio has compounded for the past four years and is up 300k this year, and it's by far the best financial decision we have ever made, and all we have to do is keep our method simple.
Oh no, I don't really trade. Too complex and random for me. I work with a financial advisor. It's a much easier and less risk way to manage my finances.
My life changed too when I started doing this and putting money in stocks. The first few years it as really great, but this year I haven't felt like my portfolio is doing well. I have lost more than $40,000 from my portfolio the past four months, and it's now very worrisome.
The year has been really rough for everybody. But I've been able to cushion the effect though. Have you thought of using an investment advisor? They can make you good money especially during uncertain times like this.
Yes, I agree. I use a financial advisor too. Same person since 2020. I don't worry about whether the economy is going up or down or sideways. I always ride through.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
It's a common misconception that when a stock you buy skyrockets, the smart thing to do is sell it (or at least sell some of it) to lock in your profits. But the context matters. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...
I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly, which means more red ink for portfolios this second quarter of the year. How can I profit from the current volatile market? I'm still at a crossroads deciding if to liquidate my stock portfolio.
Since the market is currently volatile, I will recommend that you hire a financial adviser who can advise you on entry and exit points for the shares or ETFs you focus on
You are right! I've diversified my portfolio across various markets with the aid of a financial adviser, I have been able to generate a little bit above $450k in net profit across high dividend yield stocks, ETF and bonds.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've been stuck with *KAREN* *MARIE* *GENDRON* for about five years now, and her performance has been consistently impressive.
Thanks for this. I just googled her name and found her webpage. I'm really impressed with her credentials and I reached out to her since I need all the assistance I can get.
With that in mind, I want to start shifting my portfolio among various equities and other digital currencies. I am aware that the second quarter has a lot of potential. I'm considering sharing my about $300,000 portfolio spread across several asset types. Any suggestions?
I won't make any recommendations specifically, but I can assure you that he has a good chance of winning. As many people believe, it's not as hard to allocate your assets wisely. Ordinary investors lack the necessary level of competence, thus a financial counsellor is typically quite helpful.
I concur. A financial advisor, like mine did in advising me during COVID on how the pandemic will shape things, may really help you re-adjust and uncover blindspots that you yourself do not perceive. I made it out large and continue to make up to at least 20k in dividends each month.
Her name is "Melissa Jean Talingdan." If you Google her, you can obtain the information you need to work with a correspondent to schedule an appointment.
I simply happened to Google her out of curiosity, and I must say that she has an extremely outstanding background in investment. I'll send her an email soon.
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her
put that cash in stock market within next 26 weeks , every friday or saturday invest 1/26 of ur total capital in index or valued stock if u can do some analysis , and if u see an sharp fall on market like corona etc , then invest capital in 1/4 , in 4 total times invest all like that .
I was told to put the roughly $250,000 in cash savings I currently have into stocks. Which long-term investing techniques should I employ to safeguard my future finances?
Its best if you buy growth/blue-chip/large caps stocks only. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio so you don't get burnt in this volatile market.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I consulted with a coach when I needed to invest my $120K savings, and my p0rtfolio surged by nearly 85% in 6 months.
Could you share how I can reach out to them? I've recently sold my condo in Alabama and I'm interested in investing in stocks, I'm just seeking proper guidance.
*Sharon Lynne Hart* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment. she's really good.
It's a common misconception that when a stock you buy skyrockets, the smart thing to do is sell it (or at least sell some of it) to lock in your profits. But the context matters. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas
And someone bought Birkins worth $400k in one shopping trip! We are not ready to tell each other the truth about currency: where it comes from & where it's going to! I personally refuse to accept these kinds of talks.
Sell a small percentage of your GAINS...and BUY BACK the SAME STOCK...at the next dip..and this time but a small percentage more than the stock you earlier sold!! This is super compounding
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life
@JayniecloseAs a beginner investor, it's essential for you to have a mentor to keep you accountable. George Powell is my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
1. I will work hard 2. I will invest 3. I will invest more 4. I will invest more and more 5. I will not fullfill my besic need 5. I will not buy car 6. I will not take my parents to any tourist place 7. I will buy more share. More and more 8. Now I have billion dollars worth a stock 9. At the age of 60 I will die 10. My money will be enjoying by next generation 11. I have done nothing in my life, not ever taken good care of my parents. and only investing and investment. Never enjoyed my life. Great Idea boss. I already started investing.
this is how I see it, invest moderately and get the finest things in life that makes you happy. You will age with good money invested and not regret your younger self or years.
Compounding is like magic. The interest you earn starts earning interest itself, and over decades, it can really add up. It’s one of the reasons I started saving early.
It’s tough, though, with the current market situation. Even with compounding, inflation eats away at the gains. I feel like I’m just treading water sometimes.
It’s frustrating. But even in a down market, if you keep contributing regularly, those compounded returns can still work in your favor. Remember, it’s about time in the market, not timing the market.
The key is, don't be tempted to spend it. Life is hard. Most of us at some point pull those meager funds we've built up to pay for whatever emergency or fancy that comes up. I certainly did. But... Start saving early. Be disciplined. Just more advice from an old man. Take it or leave it. Even on a low income, wealth can be achieved.
The power of compounding with such powerful examples should be taught in schools..that will eliminate the "why am I learning this stuff question" that some have.
But the ordinary person does not have 400 years for this kind of example. A typical person has 30-40 years at max of working life. Not saying compounding isn’t great, it certainly is. But this kind of example is not relatable to a human life.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
truly appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
I'm curious about the greatest investment prospects right now. I read certain perspectives, but I soon learn that these opinions are meaningless because the stocks they mentioned took a completely different turn.
The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalising on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.
You can start by dollar-cost averaging instead of buying a lump sum at once. Also, consult a fiduciary with crypto expertise for informed buying and selling decisions since talks of a bitcoin ETF approval. Time in the market is more valuable than timing it. Using this approach, I grew my crypto holdings from $50k in 2017 to $690k in 2023.
The decision on when to pick an Adviser is a very personal one. I take guidance from Sharon Ann Menyto meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Excellent video as always but here is my problem I have been making losses trying to make profit trading. I thought trading demo account is just like trading the real market... can anyone help me out or at least advise me on what to do
You're right! I have lost a lot trading all by myself without a guide. It's been an uneasy ride for me. Who is your mentor please. how can i reach her i really need help in this bear market now?
@@calmnarrative yes, I opened an IBKR account and will transferred most of my cash there in some index funds. My kids are still in preschool, so by the age of 20 if they dont turn into brats, I will get them to watch this video 20 times and leave them a nice jumpstart :)
The world doesn’t work like that. Firstly, which company would you have invested in 1600s? Secondly, considering most companies go bust in a few decades down the line, chances of losing singnificant portion (or probably all) of that invested amount would have been very high no matter how diversified you’d have been. Thirdly, if this 7% rule holds true, inflation growing with the same rate holds true as well so everyone would have been needing billions of dollars just to survive today. Lastly, what about gold prices? Wouldn’t they have gone infinite by now since that has been a form of currency since ages?
Yeah but this example is awful. Given the native Americans effectively had their land stolen and were subject to a genocide, this story is fist biting for even the least politically correct person. The best example I've heard of compounding is a grain of rice doubling for every square on a chess board until there is no more rice left in the entire kingdom. Only takes 64 doubles. You cannot get your head round it until you visualise it or do it yourself on a calculator.
Very informative video you have, I have been able to understand the messages you pass but there are some other challenges that may come about when taking some other risks
I don’t think anyone that has dedicated time,money and efforts to scale to new net worths in whatever field of investments hasn’t reach some of the challenges that you would face personally.
My brother has been able to help with such issues through a CFA he was able to link me up with. Since hiring my advisor? It’s been better handling such financial turmoil that may happen
Oh yeah! You can definitely say that, it does worry me a bit, but not as much as it would worry the average guy, my investment portfolio has survived a couple of recessions unscathed, been privileged to be guided under the stewardship of an extremely gifted investment manager by the name ERIC PAUL ELMAR
Sure.. Eric Paul Elmer has a really unique gift of being able to looking far ahead down the road to spot future investment portholes and possible major mishaps, so he helps me make the safest investments and also helps me hedge all my investments against possible future downturns
In 1990 no one talked of compounding or long term There is no organised thing for compounding like today ( evey one say if we invest in titan or Infosys they are now multi baggers out thousands of listed stock who knows which grows and which will be like anil Ambani stocks )
I'm astounded this video only has c400k views! This is one of the reasons i started my channel. Basic financial and personal development opportunities are being missed because people don't know or don't understand. Fantastic upload🎉
Big house, Expense car, iPhone, big fat wedding mein BIG amount spent karte ho & jab investment karne ko koi kehta hai life kab enjoy karenge kehte ho .....5 days marriage enjoy ke liye 10Lakh hai but investment ke liye nahi hai....yahi mentality MIDDLE CLASS & POOR people ko aur jyada down lee jata hai.....& RICH get Richer ..... Foreign country ke jaisa agar early 20s se koi income karna start kia & thoda save karke investment Kia to early 40s mein uske pass sufficient Paisa hoga early retirement & life enjoy ke liye..... REMEMBER average life expectancy in india is 65 now.....with medical development after 20year it will 75 age.....so from 45 age to 65age ......Good 20 yo 30 year for happily enjoyed ....... Young age mein thode paise se kya hi enjoy kar loge better to achieve big amount at age 40.....They life will happier
Many underestimate the power of compounding but same time he's only giving a limited perpective and based on assumptions that seasons don't change and also not the bigger picture on how finance economics truly operates and what fiat based money actually is which is really just a tool/energy and That the value in that energy is being siphoned without us realizing and so it's not that things are more expensive It's that the dollar is worth less and less in energy value exchanged for your hour of work, fiat money inflated/created out of thin air is the diluting of your dollar's value in energy, that huge compounded amount at the end looks good on paper but it's not worth what at first glance you percieve that value amount to be on the surface level I mean what about factoring in the devalueing of the dollar for 99 Years.
the thing about this kind of compounding is your have to start young to hopefully live long enough to enjoy the benefits. also you need to think long term for generations. we only have one life. do we live for ourselves and let the future generations live for themselves or live off our sacrifice? I’ll argue to live you life but leave a little for future generations.
Yes but everyone who made that deal died and never saw the benefit. Compounding is amazing and you can compound to the moon but I do all my investing and compounding figures around my retirement age so I'm realistic and keep my figures revolving around my life expectancy.
if people thinks he is saying something extra ordinary thing , i'm sorry to say this but in india it's a very small thing. we are taught many difficult things. please start learning things he is telling very basic things . don't see it as in a negative way but try to educate yrself. their are many mystery in maths. you will enjoy a lot
Compounding means to be wealthy when you have no teeth to eat,no eyesight to enjoy nature, no friends to enjoy with, Just a weak body and memories of youth when you wanted to become rich.
What is the best and safest option to be ensured to get 7-10% return in 2024? That's the key element to know as all knows compounding but key factor is where to invest?
Inflation compounds the same way too so the value of money at that time will not be significant and also currencies collapse time and again so savings could be lost..
It's too easy and way too hard to commit to DCA into the market (even small amounts) early and reach $1mil in 30yrs...the later you delay the later that $1mil moves out. Everyone wants a far easier track
Two problems were not mentioned in the video: Inflation over 50 years and 7% per year. If you make 7% per year over 50 years you outperfrom 99.8% of all fund managers. -That is rediculous for an avg. investor. The inflation over 50 years is about 400%,- (3% per year). So if you take his example of 1 Millon Dollar in 50 Years, saving 1500 per year and 7 % every year it is only 250.000 Dollars from today on if he would start today - if you achieve 7% per year. Compounding is strong in a way but not below 10% per year, included inflation! So if you make 15% per year than you can get wealthy in 30 - 40 years. Everything else is saving your savings for someone else (also called non-consuming).
Man I put 350k in my brokerage about 2 months ago and it’s already down to 336k and this is during the greatest bull run in history. I’ve made some dumb day trading blunders. At this point I’m guessing letting it sit in cash and get the 5% interest is my best option because I am an idiot in the market.
@@TheRPatel1 Inflation is a negative aspect of Investing, rather than focusing on inflation why can't we focus on getting returns that will beat the inflation with a big margin.
Yup starting a business is highly rewarding but for us in India 7% is a risk free return, In Index investing its easy to achieve 12-14% returns considering inflation around 6% we achieve a real returns on 6-8%, and if you are a good stock picker excepting 20% is conservative.
More inflation more money printing exsess money printed will surely be diverted to market and upcoming asset class That's the best and only way to fight inflation
I'm having a query regarding SIP. I'm having my Demat account in zerodha app. I want to invest in funds like Nippon and Sbi both small cap but the their is no option for Sip instead it's showing Create AMC SIP which is also good but in AMC sip I'll not able to step up my sip which will affect my corpus after some time say after 10 years... Please suggest me what you do.
I think the problem people have with compounding is that it takes so long. I have to wait 10 years for my $50 to double when I just have to work a couple of hours to just make another 50
That's a valid point. Additionally, while compounding benefits significantly from time, the overall value of investments plays a crucial role in its impact. For example, doubling $100k to $200k has a much greater impact than doubling $1k to $2k.
@@TheFinancialEconomics what ppl are looking for who make 30-40-50k a year are ways to turn their 100 into 200 like in a month because that could help them way more
Remember Your wealth is what you have spend and what you have consume. Your money in bank and investment belong to your wife, kids and family or other benefector. When you are dead those people who will enjoy it.
At 2:35 mins when he says 100 yrs period, u take 2 to the power 10 what does that mean? Does ‘2’ means 2 times ( I.e doubling the money) and ‘10’ means 10 yrs in context of the anecdote he is explaining? But then where does 100 Yr fit into the equation? Similarly at 8:20 mins what is meant by ‘2 to the power 5’ for 50 Yr period if money doubles every 10 yrs?
1. Since it doubles every 10 years for 100 years it will double 10 times, so 2^10 is 1024 times ( to make math simple he excluded 24 and kept 1000 only) 1000 times your initial investment. 2. Again here 2^5 here is 32 times, 32 times your initial investment.
@@TheFinancialEconomics Thanks a lot. I figured it out after thinking a bit post putting the question. Its quite profund and thanks for sharing this video
The man who sold Manhattan for 24 dollars did not have 400 years to live on planet. He did not have other resource other than 24 dollars to survive. SO in his lifetime of say 40 years after making this deal, he would have spent 23 dollars, and invested remaining 1 dollars and his offsprings keep doing same thing over years, in 2026, the value would be millions or so. The point is sole purpose of money is to earn and save say 10 to 20%, remaining money will be spent for living. If you achieve compounding on saved 20%, it would suffice to save until your retirement. Dying wealthy should not be the aim, Living with enough resource is important.
Only question is are you sure you are going to live till you are 68 or 69? What grantees do you have. I understand you need to save, but his logic is not very good because life is a bubble. All you can do is invest and hope for the best. That is the only strategy. Don't think about or calculate the outcome. Just try to do it.
Great video on a life changing subject 📸🔥😊👌 To start investing has been one of my best decisions for sure, and I'm still 36, 30 more years of growth ahead 💹
what is the value of $1500 in 50 years after 50 years of inflation? Now do the reverse into labor hours and think: was this time lost, or it had value back then? is there better investment then USD, which loses value since it was created. The history has 100% statistics on paper currencies: they all go to zero!
IK, everything goes to ZERO, but that doesn't mean we should stop earning and investing. You have to live your life with some sort of ambition, everybody is gonna die one day but that does not mean we stop breathing today.
Explain that math in each 10 years the money double. 5000 after 10 years 10000 28 years More 10 years 20000 38 More 10 years 40000 48 More 10 years 80000 58 More 10 years 160.000 68 For 5 million i gess would take a little more time
What’s the point of making millions of money at old age of 60 or more if you don’t have the health or time to enjoy it ? There should be a balance you have to maintain of spending your money and enjoying your young life…. If you are saving the money for your future generations, yes, then definitely you can see this long compounding magic to work but it will not work for you.
@@hakimlukka5511 this is how I see it, invest moderately and get the finest things in life that makes you happy. You will age with good money invested and not regret your younger self or years.
I came here to knock the video due to the thumbnail... But yeah, the math here is sound. I mean, the idea of stock picking for a 2-3x return is a bit of an unrealistic expectation every year, and will probably even out with loosing picks to bring the average back in line... But outside of that, this video is spot on.
My kids are just starting to hit those middleschool years, and I am trying to lay that foundation of understanding and expectations that when they do start working, to start investing aggressively and early. They may not want to live with mom and dad forever, but as long as they are aggressive savers and building wealth, then they are more than welcome to live with us as long as they want. We are even considering doing at least a partial "match" for their Roth when they start working to help them put their money towards other things that they need as a young adult (like a car, furnature fund, future house down payment, etc).
Because at a young age, maxing out your Roth nearly guarantees that you have half a million dollars by retirement. Do that for 4-5 years and you should have an easy $2M by retirement age. Even with inflation, that is enough safety net so that they can have a basic retirement safety net in place. $2M won't be crazy money in 60 years when they retire, but it will be enough to put a roof over their head, keep the lights on, and keep food on the table. As long as they continue investing, even a little bit, then they will have an awesome life ahead of them.
This last year I turned 40... And man did I get a late start lol. I did get into a house early, but I had a ton of debt early on, and wasn't in a career with any kind of retirement plan options, so I didn't really start saving until 35... But as we paid off debts we saved extremely aggressively to make up for lost time. In the last 5 years, through a lot of hard work and sacrifice, we have made up for the last 15 years of not investing.
The temptation is to say we are caught up, and to enjoy our income now that we are caught up to where we ought to be... But we still have 20-25 years of compounding ahead of us. Continuing to sacrifice and save aggressively for another 5 years should put us in a place where we hit critical mass. It is the point where even if we stopped investing, it should compound the rest of the way to our goal for our current lifestyle. We can then step waaaay back and either work a lot less to maintain our current lifestyle and not worry about retirement investing for 20 years. Or we can keep working hard, save only 10%, and continue growing retirement to the expanded lifestyle target. Both of those options sound amazing to me! So we continue with the sacrifice.
The one thing I wonder though is the goal of building wealth significantly beyond needs. I mean, if I have $2.5M in retirement then I'll never run out with my current lifestyle, even when accounting for inflation, and not factoring in any kind of social security. If we continued to save like crazy, I kind of fail to see the point. I could potentially hit $10M if I really tried... But... Why? My goal with money is security and safety. Accumulating significantly beyond that doesn't provide more security (security theater maybe), so all things equal I would rather spend that money on making my world a better place. Money for it's own sake is fine if you genuinely enjoy the game of it. But most of us have other goals.
Thank you for sharing this will definitely help a lot of viewers!! ❤️
The math is not sound it is a mathematical impossibility for compounding to occur in the markets due to the fact that all gains must be locked in for them to compound, which can never occur in a fluctuating market. It is a lie perpetuated by financial planners and Wall Street forever and there should be a lawsuit filed with the SEC to disallow it.
VRAU BANI MEJ.CHES 990.billion. /£/DATA. 20.may.2023
Qq
Q
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 follow 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.
Uncertainty... it took me 3 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 3 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
@@hasede-lg9hj How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?
Annette Marie Holt, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
We have learnt in investing journey that you can't control the market but you have the power to control your actions in the market
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to over $750k.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, “Rebecca Nassar Dunne” turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I want to invest roughly $700,000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?.
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. Patience and a long-term perspective are key. You should consider a market expert to guide you.
that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
“Rebecca Nassar Dunne”’ 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.
I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Diversification is the secret to optimal performance. This is why I have my interests set on market sectors based on performance and projected growth, such as stock, EV sector, renewable energy, Tech, and Health. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE
consider investment planning, learning from a well experienced advisor is invaluable
True. My portfolio was diversified across several markets with the help of a financial planner, and were able to achieve over a million in net profit among high dividend yield equities, ETFs, and bonds. It is vital that you have a variety of exposure, including in firms that are currently generating cash flows.
You seem to know the market better than we do, so that makes great sense. Who is the guide?
'Laurelyn Gross Pohlmeier' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Thank you for this advice. Very useful. I live frugally and I was able to save up to 40k, alongside my wife, and we invested the money. The portfolio has compounded for the past four years and is up 300k this year, and it's by far the best financial decision we have ever made, and all we have to do is keep our method simple.
Wow, that's a good ROI. You trade or you have been holding all this while?
Oh no, I don't really trade. Too complex and random for me. I work with a financial advisor. It's a much easier and less risk way to manage my finances.
I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with please?
Marissa Lynn Babula is the licensed advisor I use. Just research the name. You’ll find necessary details to work with to set up an appointment.
I'll definitely look her up. Thanks for the recommendation. I hope I'm able to connect with her.
My life changed too when I started doing this and putting money in stocks. The first few years it as really great, but this year I haven't felt like my portfolio is doing well. I have lost more than $40,000 from my portfolio the past four months, and it's now very worrisome.
The year has been really rough for everybody. But I've been able to cushion the effect though. Have you thought of using an investment advisor? They can make you good money especially during uncertain times like this.
Yes, I agree. I use a financial advisor too. Same person since 2020. I don't worry about whether the economy is going up or down or sideways. I always ride through.
Oh, really? I have never thought of that as an option. Can I ask who it is you've been working with? I bet I could use some help myself.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
It's a common misconception that when a stock you buy skyrockets, the smart thing to do is sell it (or at least sell some of it) to lock in your profits. But the context matters. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas...
I think the next big thing will be A.I. For enduring growth akin to META, it's vital to avoid impulsive decisions driven by short-term fluctuations. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K
Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly, which means more red ink for portfolios this second quarter of the year. How can I profit from the current volatile market? I'm still at a crossroads deciding if to liquidate my stock portfolio.
Since the market is currently volatile, I will recommend that you hire a financial adviser who can advise you on entry and exit points for the shares or ETFs you focus on
You are right! I've diversified my portfolio across various markets with the aid of a financial adviser, I have been able to generate a little bit above $450k in net profit across high dividend yield stocks, ETF and bonds.
Please how can i get to reach out to your adviser?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've been stuck with *KAREN* *MARIE* *GENDRON* for about five years now, and her performance has been consistently impressive.
Thanks for this. I just googled her name and found her webpage. I'm really impressed with her credentials and I reached out to her since I need all the assistance I can get.
With that in mind, I want to start shifting my portfolio among various equities and other digital currencies. I am aware that the second quarter has a lot of potential. I'm considering sharing my about $300,000 portfolio spread across several asset types. Any suggestions?
I won't make any recommendations specifically, but I can assure you that he has a good chance of winning. As many people believe, it's not as hard to allocate your assets wisely. Ordinary investors lack the necessary level of competence, thus a financial counsellor is typically quite helpful.
I concur. A financial advisor, like mine did in advising me during COVID on how the pandemic will shape things, may really help you re-adjust and uncover blindspots that you yourself do not perceive. I made it out large and continue to make up to at least 20k in dividends each month.
I could definitely benefit from this advertiser's experience.
Her name is "Melissa Jean Talingdan." If you Google her, you can obtain the information you need to work with a correspondent to schedule an appointment.
I simply happened to Google her out of curiosity, and I must say that she has an extremely outstanding background in investment. I'll send her an email soon.
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her
Invest in lump sum mutual funds index is best options
put that cash in stock market within next 26 weeks , every friday or saturday invest 1/26 of ur total capital in index or valued stock if u can do some analysis , and if u see an sharp fall on market like corona etc , then invest capital in 1/4 , in 4 total times invest all like that .
Just look up John Bogle (of Vanguard) as a start. His book commonsense investing has it all.
Don’t invest in individual stocks. Buy the s and p 500 and thank me later (average return of 11.5%)
I was told to put the roughly $250,000 in cash savings I currently have into stocks. Which long-term investing techniques should I employ to safeguard my future finances?
Its best if you buy growth/blue-chip/large caps stocks only. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio so you don't get burnt in this volatile market.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I consulted with a coach when I needed to invest my $120K savings, and my p0rtfolio surged by nearly 85% in 6 months.
Could you share how I can reach out to them? I've recently sold my condo in Alabama and I'm interested in investing in stocks, I'm just seeking proper guidance.
*Sharon Lynne Hart* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment. she's really good.
Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.
It's a common misconception that when a stock you buy skyrockets, the smart thing to do is sell it (or at least sell some of it) to lock in your profits. But the context matters. If the stock has increased sharply because the business is performing exceptionally well, it could still be a bargain. I'm still looking for companies to make additions to my $350K portfolio, to boost performance. Here for ideas
You can always borrow against your shares.
And someone bought Birkins worth $400k in one shopping trip! We are not ready to tell each other the truth about currency: where it comes from & where it's going to! I personally refuse to accept these kinds of talks.
Sell a small percentage of your GAINS...and BUY BACK the SAME STOCK...at the next dip..and this time but a small percentage more than the stock you earlier sold!!
This is super compounding
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life
@JayniecloseAs a beginner investor, it's essential for you to have a mentor to keep you accountable.
George Powell is my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
Can you introduce me to George Powell, l'd love to learn more about his service.
Georgepowellz
On Tele G
@@Collins-w5e Ty i will text him right away 🙏
1. I will work hard
2. I will invest
3. I will invest more
4. I will invest more and more
5. I will not fullfill my besic need
5. I will not buy car
6. I will not take my parents to any tourist place
7. I will buy more share. More and more
8. Now I have billion dollars worth a stock
9. At the age of 60 I will die
10. My money will be enjoying by next generation
11. I have done nothing in my life, not ever taken good care of my parents. and only investing and investment. Never enjoyed my life.
Great Idea boss. I already started investing.
Compound your money only as much as you need, and set a financial goal.
this is how I see it, invest moderately and get the finest things in life that makes you happy. You will age with good money invested and not regret your younger self or years.
You won our Hearts ♥️
This is actually ancient Indian knowledge said in modern way. Jai Bharat!!!
Jai Hind!
I’ve been looking into how compounding can really boost retirement savings. It’s fascinating how it works over time.
Compounding is like magic. The interest you earn starts earning interest itself, and over decades, it can really add up. It’s one of the reasons I started saving early.
It’s tough, though, with the current market situation. Even with compounding, inflation eats away at the gains. I feel like I’m just treading water sometimes.
It’s frustrating. But even in a down market, if you keep contributing regularly, those compounded returns can still work in your favor. Remember, it’s about time in the market, not timing the market.
But what about those of us who didn’t start early? I’m in my 50s, and I feel like I’ve missed the boat.
it’s never too late to start. Even if you didn’t begin early, you can still take advantage of compounding
The key is, don't be tempted to spend it.
Life is hard. Most of us at some point pull those meager funds we've built up to pay for whatever emergency or fancy that comes up. I certainly did.
But...
Start saving early. Be disciplined.
Just more advice from an old man. Take it or leave it. Even on a low income, wealth can be achieved.
Thank you! Appreciate it.
The power of compounding with such powerful examples should be taught in schools..that will eliminate the "why am I learning this stuff question" that some have.
Very True!!
But the ordinary person does not have 400 years for this kind of example. A typical person has 30-40 years at max of working life. Not saying compounding isn’t great, it certainly is. But this kind of example is not relatable to a human life.
Yes Amit, but it shows How powerful compounding can be. Right?
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
truly appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Being 22 myself I would definitely love to show this video to my future kids ❤
Fantastic!!
I'm curious about the greatest investment prospects right now. I read certain perspectives, but I soon learn that these opinions are meaningless because the stocks they mentioned took a completely different turn.
The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalising on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.
You can start by dollar-cost averaging instead of buying a lump sum at once. Also, consult a fiduciary with crypto expertise for informed buying and selling decisions since talks of a bitcoin ETF approval. Time in the market is more valuable than timing it. Using this approach, I grew my crypto holdings from $50k in 2017 to $690k in 2023.
Amazing! I hope it's okay to inquire if you're still collaborating with the same fiduciary and how I can get in touch with them?
The decision on when to pick an Adviser is a very personal one. I take guidance from Sharon Ann Menyto meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Excellent video as always but here is my problem I have been making losses trying to make profit trading. I thought trading demo account is just like trading the real market... can anyone help me out or at least advise me on what to do
Trading is easy, but trading the right coin without a time-tested strategy is incredibly hard.
My advice, never do shorts or longs on stocks or #crypto
most people went bankrupt better buying in parts monthly
You're right! I have lost a lot trading all by myself without a guide. It's been an uneasy ride for me. Who is your mentor please. how can i reach her i really need help in this bear market now?
Trading with Kate Herman trading analysis
Though I started with as low as $15,000 actually because it was my first time and it was successful, She's is a great personality in the state
This is video I needed 25 years ago.
🙃
It's never too late.
Even if you are too old, your money can compound for your children or grandchildren.
@@calmnarrative agree
@@calmnarrative yes, I opened an IBKR account and will transferred most of my cash there in some index funds. My kids are still in preschool, so by the age of 20 if they dont turn into brats, I will get them to watch this video 20 times and leave them a nice jumpstart :)
Good luck 🤞🏻
The world doesn’t work like that. Firstly, which company would you have invested in 1600s? Secondly, considering most companies go bust in a few decades down the line, chances of losing singnificant portion (or probably all) of that invested amount would have been very high no matter how diversified you’d have been. Thirdly, if this 7% rule holds true, inflation growing with the same rate holds true as well so everyone would have been needing billions of dollars just to survive today. Lastly, what about gold prices? Wouldn’t they have gone infinite by now since that has been a form of currency since ages?
It’s just an example of compounding & how it works
Everyone knows this buddy
the example shouldn't be utopian or
lie 😅😊@@TheFinancialEconomics
Example is an example no discrimination here 😀
Some crazies here saying there were no concept of shares in the 1600's. This is just figuratively speaking. Understand the concept is more important.
Exactly!!
Yeah but this example is awful. Given the native Americans effectively had their land stolen and were subject to a genocide, this story is fist biting for even the least politically correct person. The best example I've heard of compounding is a grain of rice doubling for every square on a chess board until there is no more rice left in the entire kingdom. Only takes 64 doubles. You cannot get your head round it until you visualise it or do it yourself on a calculator.
@@paulbo9033 That's a classic example.
Very informative video you have, I have been able to understand the messages you pass but there are some other challenges that may come about when taking some other risks
I don’t think anyone that has dedicated time,money and efforts to scale to new net worths in whatever field of investments hasn’t reach some of the challenges that you would face personally.
My brother has been able to help with such issues through a CFA he was able to link me up with. Since hiring my advisor? It’s been better handling such financial turmoil that may happen
Oh yeah! You can definitely say that, it does worry me a bit, but not as much as it would worry the average guy, my investment portfolio has survived a couple of recessions unscathed, been privileged to be guided under the stewardship of an extremely gifted investment manager by the name ERIC PAUL ELMAR
Sure.. Eric Paul Elmer has a really unique gift of being able to looking far ahead down the road to spot future investment portholes and possible major mishaps, so he helps me make the safest investments and also helps me hedge all my investments against possible future downturns
Ok… I’ve been able to do some research on the Web and I found his site, he has his license so that’s reassuring
Phenomenal video. Explains the relation between compound and time to anyone at any age!
We feel the same!!!!
Thanks for watching 😇
In 1990 no one talked of compounding or long term There is no organised thing for compounding like today ( evey one say if we invest in titan or Infosys they are now multi baggers out thousands of listed stock who knows which grows and which will be like anil Ambani stocks )
True sir
I'm astounded this video only has c400k views!
This is one of the reasons i started my channel. Basic financial and personal development opportunities are being missed because people don't know or don't understand.
Fantastic upload🎉
Thanks for the motivation!!!🤩
Patience is Hardwork while 😊 Compounding is it's reward 🎁
Exactly Rohan 🙌🏻
Big house, Expense car, iPhone, big fat wedding mein BIG amount spent karte ho & jab investment karne ko koi kehta hai life kab enjoy karenge kehte ho .....5 days marriage enjoy ke liye 10Lakh hai but investment ke liye nahi hai....yahi mentality MIDDLE CLASS & POOR people ko aur jyada down lee jata hai.....& RICH get Richer ..... Foreign country ke jaisa agar early 20s se koi income karna start kia & thoda save karke investment Kia to early 40s mein uske pass sufficient Paisa hoga early retirement & life enjoy ke liye..... REMEMBER average life expectancy in india is 65 now.....with medical development after 20year it will 75 age.....so from 45 age to 65age ......Good 20 yo 30 year for happily enjoyed ....... Young age mein thode paise se kya hi enjoy kar loge better to achieve big amount at age 40.....They life will happier
Perfect 👌
Many underestimate the power of compounding but same time he's only giving a limited perpective and based on assumptions that seasons don't change and also not the bigger picture on how finance economics truly operates and what fiat based money actually is which is really just a tool/energy and That the value in that energy is being siphoned without us realizing and so it's not that things are more expensive It's that the dollar is worth less and less in energy value exchanged for your hour of work, fiat money inflated/created out of thin air is the diluting of your dollar's value in energy, that huge compounded amount at the end looks good on paper but it's not worth what at first glance you percieve that value amount to be on the surface level I mean what about factoring in the devalueing of the dollar for 99 Years.
Ufff that’s intense David
Stocks doesn't compound,
Its value just grows on the invested amount.
If only this simple concept would be a mandatory part of every high school curriculum.
World would have been a better place to live 🥰
the thing about this kind of compounding is your have to start young to hopefully live long enough to enjoy the benefits. also you need to think long term for generations. we only have one life. do we live for ourselves and let the future generations live for themselves or live off our sacrifice? I’ll argue to live you life but leave a little for future generations.
Agreed 💯
Superb and simple explanation ❤ a lot of dim witted comments
Yes his explanations are the best
Wonderful explanation, Compounding is very complex topic but not anymore after watching this 😀
Glad it was helpful ❤️
I could listen to to this guy the whole day.
Same here.!
Yes but everyone who made that deal died and never saw the benefit. Compounding is amazing and you can compound to the moon but I do all my investing and compounding figures around my retirement age so I'm realistic and keep my figures revolving around my life expectancy.
All the very best ❤️
if people thinks he is saying something extra ordinary thing , i'm sorry to say this but in india it's a very small thing. we are taught many difficult things. please start learning things he is telling very basic things . don't see it as in a negative way but try to educate yrself. their are many mystery in maths. you will enjoy a lot
Very True!! Agreed.
Dude just changed my thinking in life. - Thanks.
Good Luck for your new Life!!! ❤
What i will do of all money at 68. When i will be suffering from Diabeties hypertension joint pain and many more. I need money now to njoy my life😂
That’s a serious problem 😂
apply power of compounding to human health .. deteriorates at faster rate and when we realise the goal we are in wheel chair.
Sad truth 🙃
fantastic and interesting demonstration of compounding
He is a gifted teacher 😇
Health is the true wealth
Top priority 👌🏻
Compounding means to be wealthy when you have no teeth to eat,no eyesight to enjoy nature, no friends to enjoy with,
Just a weak body and memories of youth when you wanted to become rich.
You have got it completely wrong
Really well spoken with great examples.
Yupp
What is the best and safest option to be ensured to get 7-10% return in 2024? That's the key element to know as all knows compounding but key factor is where to invest?
Why not Index ?
Large cap or mid or small cap index? Which one to choose
Large caps are less volatile but Small & Mid always outperforms Large caps if you are holding it for longer duration.
I'll give you 15%@@gmronit
@@gmronitI'll give 15
Inflation compounds the same way too so the value of money at that time will not be significant and also currencies collapse time and again so savings could be lost..
Agreed
It's too easy and way too hard to commit to DCA into the market (even small amounts) early and reach $1mil in 30yrs...the later you delay the later that $1mil moves out. Everyone wants a far easier track
Early the better
Two problems were not mentioned in the video: Inflation over 50 years and 7% per year.
If you make 7% per year over 50 years you outperfrom 99.8% of all fund managers. -That is rediculous for an avg. investor.
The inflation over 50 years is about 400%,- (3% per year).
So if you take his example of 1 Millon Dollar in 50 Years, saving 1500 per year and 7 % every year it is only 250.000 Dollars from today on if he would start today - if you achieve 7% per year.
Compounding is strong in a way but not below 10% per year, included inflation! So if you make 15% per year than you can get wealthy in 30 - 40 years. Everything else is saving your savings for someone else (also called non-consuming).
Agreed Thomas
But why he took 7% is to make the math simple like at 7% CAGR it double every 10 years, that’s only the reason.
This is great
Yes it is!!
Compound interest is hope
Haha no doubt 😉
❤Please add inflation in calculation.❤
Mate, 4RA events have brought us closer, now we enjoy every match together
✌🏼✌🏼
This was mind boggling🤯
🤯🤯🤯
What ‘suggested’ stock should one buy for a child ISA .. ftse world + sp500??
My runway is short, am 54 this year, do you think I would be able to compound sufficient in time before 68 ?
Yes Javed you can, 15 years is good enough runway start right away!! Good Luck!
Thanks for the excellent information.
You’re welcome Anand ❤️
Dude, 4ra is getting the World Cup T20 soon, the hype is real, bros
✌🏼✌🏼
Bhai utni compounding kro jitna uske maje lene ke liye Zinda raho....amar nhi hai insaan..
Khahani yo may thoda compounding ka kaya maza 😜
Man I put 350k in my brokerage about 2 months ago and it’s already down to 336k and this is during the greatest bull run in history. I’ve made some dumb day trading blunders. At this point I’m guessing letting it sit in cash and get the 5% interest is my best option because I am an idiot in the market.
You can do better, give it a 1 more try!
Buy Indexs😮
@@lapx1 Copy that 😄
Amount of inflation will lead to the same position that you started.
It’s was an example for compounding & how it works
And taxes. But it's a great vídeo. Thanks for.sharing.
Look like his comment hurt your sentiments. Jignes made valid point
@@HugoZierth-jj2pd Thank you!
@@TheRPatel1 Inflation is a negative aspect of Investing, rather than focusing on inflation why can't we focus on getting returns that will beat the inflation with a big margin.
Getting 7% is not that easy and involves risk. Nothing earns you more money than starting a successful business, although that involves risk too.
Yup starting a business is highly rewarding but for us in India 7% is a risk free return, In Index investing its easy to achieve 12-14% returns considering inflation around 6% we achieve a real returns on 6-8%, and if you are a good stock picker excepting 20% is conservative.
@@TheFinancialEconomics
So please tell us where this 12-14% risk free investing is?
I’d be interested to know.
@@EnquiringMinds-vx8gb Read it again 7% is risk free (Govt Bonds, Fixed deposits etc) and 12-14% is Index.
Come to India!!
Great video but where can I get information about investments with 7% returns
Which country you are from?
Great presentation!
Yess Sir!!!
Cost of living blows this theory out of the water..
What else can beat inflation other than Stocks?
Real Estate? Crypto?
Amazing video thanks for sharing 👍🏻
Thanks Shubham!
What about an over 6% inflation rate, which halves the value of money every 12 years.
Beat it.
More inflation more money printing exsess money printed will surely be diverted to market and upcoming asset class
That's the best and only way to fight inflation
Yup
Phenomenal video. Impressive
Thanks Abdul!!
I'm having a query regarding SIP. I'm having my Demat account in zerodha app. I want to invest in funds like Nippon and Sbi both small cap but the their is no option for Sip instead it's showing Create AMC SIP which is also good but in AMC sip I'll not able to step up my sip which will affect my corpus after some time say after 10 years... Please suggest me what you do.
You need to contact Zerodha support.
@@TheFinancialEconomics sir they have suspended the Sip services for some small cap.
I think the problem people have with compounding is that it takes so long. I have to wait 10 years for my $50 to double when I just have to work a couple of hours to just make another 50
That's a valid point. Additionally, while compounding benefits significantly from time, the overall value of investments plays a crucial role in its impact.
For example, doubling $100k to $200k has a much greater impact than doubling $1k to $2k.
@@TheFinancialEconomics what ppl are looking for who make 30-40-50k a year are ways to turn their 100 into 200 like in a month because that could help them way more
Could be ppl have made it a race
@@TheFinancialEconomics average life expectancy is 82 you don’t want to enjoy your life when there’s only 10 years left if it
Hmmm
That’s great when you’re 18 but what do you do when you’re 50 and only 18 years to go until retirement?
18 years aren’t less! Go for it!!
The question is where do you invest to get 7% a year?
Emerging markets
Amazing.... thanks a lot
Thank you 🙏🏻
Remember Your wealth is what you have spend and what you have consume. Your money in bank and investment belong to your wife, kids and family or other benefector. When you are dead those people who will enjoy it.
Agree 👍🏻
At 2:35 mins when he says 100 yrs period, u take 2 to the power 10 what does that mean? Does ‘2’ means 2 times ( I.e doubling the money) and ‘10’ means 10 yrs in context of the anecdote he is explaining? But then where does 100 Yr fit into the equation?
Similarly at 8:20 mins what is meant by ‘2 to the power 5’ for 50 Yr period if money doubles every 10 yrs?
1. Since it doubles every 10 years for 100 years it will double 10 times, so 2^10 is 1024 times ( to make math simple he excluded 24 and kept 1000 only) 1000 times your initial investment.
2. Again here 2^5 here is 32 times, 32 times your initial investment.
@@TheFinancialEconomics Thanks a lot. I figured it out after thinking a bit post putting the question. Its quite profund and thanks for sharing this video
That’s great 😀
Thanks for watching!!
Best!
🙌🏻🙌🏻🙌🏻
The man who sold Manhattan for 24 dollars did not have 400 years to live on planet. He did not have other resource other than 24 dollars to survive. SO in his lifetime of say 40 years after making this deal, he would have spent 23 dollars, and invested remaining 1 dollars and his offsprings keep doing same thing over years, in 2026, the value would be millions or so.
The point is sole purpose of money is to earn and save say 10 to 20%, remaining money will be spent for living. If you achieve compounding on saved 20%, it would suffice to save until your retirement. Dying wealthy should not be the aim, Living with enough resource is important.
Agreed 👍🏻
But those ppl are not there to enjoy 24 trillion!!! Jiyo ki har din aakhri ho! Don't over-invest in future and forget the present.
Noted ❤️
Fanatics video to educate people about value of investment and not touching until fully mature
Thank You! Mohnish Pabrai is the best 😇
after 50 yrs 1 million will be 20K in today's term
Who is talking about 1 million? you meant 1 billion?
Thanks for this video
You are welcome Dr. 😇
Only question is are you sure you are going to live till you are 68 or 69? What grantees do you have. I understand you need to save, but his logic is not very good because life is a bubble. All you can do is invest and hope for the best. That is the only strategy. Don't think about or calculate the outcome. Just try to do it.
Earn and invest whether one will live till 68 or 69, today’s job is Earn, Save, Invest & Spend
I always tell people it is not making more money it is how much you let compound
Perfect Michael!!
Perfect Michael!!
Great video on a life changing subject 📸🔥😊👌 To start investing has been one of my best decisions for sure, and I'm still 36, 30 more years of growth ahead 💹
Thank so much!! We are glad that it was useful ❤️
Tell me the compounding effect of 2 companies which u hold. 1 ) rain Industries 2) edelweiss Finance
😂
😅
what is the value of $1500 in 50 years after 50 years of inflation? Now do the reverse into labor hours and think: was this time lost, or it had value back then? is there better investment then USD, which loses value since it was created. The history has 100% statistics on paper currencies: they all go to zero!
IK, everything goes to ZERO, but that doesn't mean we should stop earning and investing. You have to live your life with some sort of ambition, everybody is gonna die one day but that does not mean we stop breathing today.
m doing SIP for past 2 years.... but its just going down!!!!😢😢😢😢😢😢
You’re doing a great job!! Give some time to it to grow. Good luck 😇
@@TheFinancialEconomics hope so 🤧😰😰😰
@@jennbi1627 😇
4rabet also known as 4rabet hosting the World Cup T20 soon is big news for cricket buffs
✌🏼✌🏼
Explain that math in each 10 years the money double.
5000 after 10 years 10000 28 years
More 10 years 20000 38
More 10 years 40000 48
More 10 years 80000 58
More 10 years 160.000 68
For 5 million i gess would take a little more time
Double it every 5 years at 15% CAGR
@@TheFinancialEconomics you are right, too much optimistic from them. But numbers are correct
@@hugoviegas1292 Yup!!
Cute story
hahaha
What’s the point of making millions of money at old age of 60 or more if you don’t have the health or time to enjoy it ?
There should be a balance you have to maintain of spending your money and enjoying your young life….
If you are saving the money for your future generations, yes, then definitely you can see this long compounding magic to work but it will not work for you.
Valid point Raja Ram ji
Then maintain your health also
@@hakimlukka5511 this is how I see it, invest moderately and get the finest things in life that makes you happy. You will age with good money invested and not regret your younger self or years.
@@hakimlukka5511 Thats the secret sauce !
What about inflation?
Only Stocks can beat Inflation by a big Margin
💎 Constellation ☀️ Energy Corporation (CEG) 💎
No librarian in the U.K. is making 40,50 000 at age 18
In Euros?
This is how you take an amazing topic and make it extremely boring…
Gosh!
Om namah shivay har har Mahadev Jai hind vande matram ❤️❤️🙏🙏
Jai Hind!