I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat
I think the whole thing about holding stocks for long term will always apply. So I think you should get a quality broker who is able to analyze and pick stocks that will do well in the long term, else you will be in a long bear ride.
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 broker, 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.
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
I’ve been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
This is misleading because it doesn't mention that interest rate cost is based on the REMAINING principal. So in the example, you say at 0:47 that "each year, Ben will pay the bank $2,500 in interest" NO. He will pay the bank 5% interest on whatever is left over from what he paid. You pay interest on a loan each year but you also have to pay back part of the actual loan each year. The interest is charged on whatever you owe, so that $2,500 will get lower and lower each year because you will be paying 5% interest on an amount that gets lower and lower each year as you pay it off.
@@djw5415 more like they want citizens to be more selfless, you making more money actually helps the government more than you think; it's just that income inequality is something that they'd need to keep in mind. This of course excludes zimbabwe, they are a joke lmfao.
@@xastric6944 the original comment was about how this lack of basic financial education is missing in schools. I commented on how the government does not want its people to be educated. So explain how not being educated “selfless” in the financial world helps someone become wealthy thus helping out the government. I can’t understand your logic.
Kudos for the Video! Forgive me for chiming in, I would appreciate your opinion. Have you researched - Bonincoln Wordless Authority (Have a quick look on google can't remember the place now)? It is a good one of a kind product for getting finance for your business minus the headache. Ive heard some amazing things about it and my buddy at very last got excellent results with it.
When governments print money, it causes inflation. And governments print money in order to lower the value of the money the government has borrowed, making it easier to pay back in inflated dollars.
Could you explain this to me, if for example an economy has 100 dollars, and 50 dollar is used as a loan for a 10% interest rate. Once the money is back to the owners, you have 105 dollars right? How is this possible, or is there something which I am missing.
Since the economy has 100 dollars, and the bank has 50 dollars to loan, than the person who took the loan already had money in his pocket before taking the loan, so as long as the person has more than 5 dollars in his pocket he will be able to pay back his debt and the economy would still be 100 dollars *BUT* , if the person taking the loan had less than 5 dollars in his pocket he would go bankrupt and will not be able to pay back his debt wich means the economy would still be 100 dollars.
Lend money so increase interest rates lower inflation easy. But if you put money in bank they take your money and pay interest. The profit is lending and borrowing money
Interest is a modern way of slaving other countries into debt it may look harmless to an individual but if you look into big picture you can see the impact it had on other countries this system sucks.
as citizen of a poor country that pays billions of its precious few earnings paying back interest on loans and taking out even more loans to pay its old ones, i agree with you a hundred percent.
As a citizien of a poor country that pays billionn dollars of its precious earnings, I say that our problem are our politicians who spend our few money so badly. Im from Brazil and Im a witness. We are respinsible for our problems. But politicians, who don't work serious and right, says that the responsible for our problems are USA.
Housing is only as good as the governments which regulate the housing market. If it no longer becomes profitable to build a house and rent it out, THEN WHY WOULD I RISK MY MONEY DOING IT?
I'm confused about the Bank charging Ben 5% on the $50,000 and him having to pay them $2,500 each year. Does it mean Ben has to pay a certain amount of money + the 5% interest rate each year? Or does it mean that the $2,500 he has to pay the Bank is increased by 5% each year?
OK imma give it a try from what I understood. SO you will be right, Ben has to pay a certain amount of money + the $2,500 a year. Since the banks are trying to make some money they will lend you a certain amount of money but instead of just getting what they lent in return and gain nothing from it they will instead charge interest in which the person who got loaned money will pay both the amount he needs to pay back + the additional costs of interest. This is one of the reasons why people tell you, when it comes to credit cards, to never borrow more than you can pay since after a certain time the bank will then charge you interest so now not only will you pay what you borrowed but now you have to pay an additional cost called interest.
@@deathstroke8639 Ok so let’s say I’m Ben. The Bank loans me 50k. I pay 2,500 dollars for 8 years. On year 9, I pay back the 50k they loaned me. Will I also have to pay an additional 2,500 for year 9? Is there an exact day when the 2,500 will need to payed?
So if he pays the debt over 10 years then he has to pay $25,000 + $50,000 = $75,000!!! That’s a blatant scam especially for a degree that won’t get him a job
Should have more dramatic soundtrack. This isn't a banal topic. Actual jobs are lost because interest rates are too high. This concept should be understood by the majority of the population.
What is the strongest force in the universe? "Compound interest". Albert Einstein My first home loan was VA at 7.25 percent and considered a good deal in 1974. Today Wall Street fast talkers set their hair on fire when bank rates are increased 1/4 %. They do not want people taking money out of the market and making 4 or 5 percent in a CD with zero risk. The idea scares them to death. Historically, mortgage rates have been as high as 12 and 13 percent. CDs have returned a little higher than that. Unless you have a seat on the Stock Exchange, buy stocks in thousand dollar lots with the speed of a computer; you are playing the sucker to the high rollers. Start young, save 10 to 15% of your income and let compound interest work for you for 40 or 50 years. Everything else is gambling and the house always wins.
So the bank has an interest rate of 5% on the loan to Ben, and Ben has interest rate with his bank account of 5%? - No bank would function like this terrible profit. Try 0.5% for Ben and 5% for the bank. The house always wins !
But where does the money go after? They flood a market with non existent money that has to be paid back with real money, but they also charge a fee for this so the money paid as interest is taken away from the local economy. Where does this money go and if it does not go back in to circulation it is taking away purchasing power from the economy. They are not being paid as interest for storing money in the banks. I don't know any banks that offer even 1% rates on accounts other than apartment saving loan accounts which again benefit them with the interest they will get from the loan I will take with them for buying an apartment.
No, go create something with your hands. THAT is money. Useful tools are money. Generators are money. FOOD is money, because without it, you would starve.
I want to say something. Rich people loan money to poor people, who are desperate for it. We are so grateful to the rich people who take the risk, and loan it to us.
-_- No.... "Maybe" the other way round...IE; If he put 10000 in (and had an amazing bank) he would get 500 at the end of the year. But this only serves as an example. and is extremely unlikely to happen.
It depends on wich bank you're saving your money at, if you find a really good bank with high interest rate and monthly payment (wich is very rare and pretty much impossible) than yeah you will be given that 10,000 dollars.
invalid question... If you take $50,000 from bank, the banks add 5% of interest per year until you payoff the loan taken from the bank (In this case interest also adds). Whereas in other scenario if bank holds our $50,000 they pay 5% as interest to us, as they use our cash for different purposes! Hope I made you clear... 😊
Lets say you live outside the USA. And you DESPERATELY need money TOMORROW! How much interest would YOU pay? 25 per-cent per week, 30? MORE? Right now, I would pay 100 per-cent interest on a $100 loan, and count myself lucky to get it. (And I live in the USA) (jackfenn6241@gmail.com) Make me an offer.
If you are a private lending institution, and you want to make money, you make loans. But if you cannot make any money from the interest on those loans, then why take the risk of LOSING that money you loaned? The interest rate should be 7 or 8 per-cent, MINIMUM!
what is the difference between Central Banks and Commercial banks interest rate? Does central Banks interest rate determine how much commercial banks should charge in interest rate since they are the one who have mandate to change interest rate? please help me guys Anyone?
5 percent interest rates will be a dream in heaven but sadly that is not a thing and I make a couple cents from have 500 dollars in the bank ps I'm not old
A certain sum of money,invested at compounded interest amounts to rs 27783 in 3 years and rs 26460 in 2 years .what is the rate percent of interest ?plz sir solve this question
There is a remote desert island. On one end of the island is a billion dollars. On the other end is a billion hamburgers. Which end do you go to? Which end is more valuable? Money is only as good as what it will buy. Work is money. Cars are money. Useful and necessary things are money. Cash is only a promise to pay. You cannot eat it, or use it to build a wall, or a house. Work is what you will DO!
The bigger the loan, the bigger the profit, if you loan 100,000 dollars at interest rate of 10% then you will make 10,000 dollars profit, that's why banks take that risk.
Using my credit card, if I borrow $20,000 from the bank, )which of course depending on the interest rate will be payed back In a few years) then put the $20,000 in my savings account which is technically loaning the bank my money which means compound interest will take place and by the time I'm 46 I'll have $348,988.05?
![MV วิถีชีวิตใต้ - ผา อัยย๊ะ [Official MV HD]](http://i.ytimg.com/vi/nODlkOUu9B0/mqdefault.jpg)
I see the rising interest rate as a very big problem, as more investors will definitely pull out more money from the Stock market. This might have worked when I was still invest-ing with a couple thousand dollars, but it is more difficult now to decide whether to pull out more than $365k from my port-folio. I know some inves-tors still make that despite the strong bear market. In wish I could pull that feat
I think the whole thing about holding stocks for long term will always apply. So I think you should get a quality broker who is able to analyze and pick stocks that will do well in the long term, else you will be in a long bear ride.
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 broker, 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.
This sound interesting. I’m not really one to use pro analysts, but I guess it would not hurt to try one. My portfolio is in the red waters right now
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
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.
I learned more from a random guy on YT in 2 minutes than in 12 years of school
Fr smh
Lmao same only today I understood it clearly after 13 years of education
12 years of knowledge vs interest?
I’ve been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
I will advice you should stop trading on your own if you keep losing.
If you can, then get a professional to trade for you I think that way your assets are more secure.
I’d recommend Viola Patterson , her profit is great even when there’s a dip
you dont need to be shocked haha because i'm also a huge beneficiary of her
I've seen a lot of positive reviews about this professional, she must be exceptional for people to talk about her goodness
This is misleading because it doesn't mention that interest rate cost is based on the REMAINING principal. So in the example, you say at 0:47 that "each year, Ben will pay the bank $2,500 in interest" NO. He will pay the bank 5% interest on whatever is left over from what he paid. You pay interest on a loan each year but you also have to pay back part of the actual loan each year. The interest is charged on whatever you owe, so that $2,500 will get lower and lower each year because you will be paying 5% interest on an amount that gets lower and lower each year as you pay it off.
Aka amortization
When some random dude on yt teaches more then your teachers in 2 minutes
We just pay more attention when we are at home , stoned .
I'm actually convinced that TH-cam, properly utilized, can give you a better and more real-world applicable education than 95% of colleges
Reason being is the government “banks” do not want you to be financially literate. It’s in their best interest.
@@djw5415 more like they want citizens to be more selfless, you making more money actually helps the government more than you think; it's just that income inequality is something that they'd need to keep in mind. This of course excludes zimbabwe, they are a joke lmfao.
@@xastric6944 the original comment was about how this lack of basic financial education is missing in schools. I commented on how the government does not want its people to be educated. So explain how not being educated “selfless” in the financial world helps someone become wealthy thus helping out the government. I can’t understand your logic.
“As long as he keeps his money in the bank the he will be gaining compound interest unless a 2008 happens”
Thank you for the insight big dong jong
i like your username
Or a 2020
@@shaistashaheen5450 what happened in 2020?
@@hmt-0764 bruh tf u been lol?
There are plenty of banks who will charge you huge interest
But when it comes to borrowing money to the bank they pay back shit
And the difference is what is called "profit".
This is one of the most important concepts in economics
What bank you speak of that pays 5% interest rate? Lol highest I seen is 0.95%
ikhosa 5% was chosen for simplicity, it's just an example.
Kudos for the Video! Forgive me for chiming in, I would appreciate your opinion. Have you researched - Bonincoln Wordless Authority (Have a quick look on google can't remember the place now)? It is a good one of a kind product for getting finance for your business minus the headache. Ive heard some amazing things about it and my buddy at very last got excellent results with it.
Dude, it’s a friggin example. I’m so sick of “technical nazis” annoying video creators.
Some of the Russian ones have it, but the loan rates are in the double digits zone, so...
Some money market accounts can get close to 3%
🤯 I was looking for this. Thanks my brain just expanded.
Thanks thats really help a lot we were studing compound Interest ,Growth and Depreciation
Thanks for making this video I learned something new today
Ayamashe h
Hows 2014?
This is the best fucking comment i have ever fucking seen.
@@josephjoestar275
Joseph, what are you doing here watching an interest loan video?
@@kcviin Hows 2018? were not doing good so far here in 2020
You didn't mention inflation
The problem is that the value of most currencies is dropping each year
When governments print money, it causes inflation. And governments print money in order to lower the value of the money the government has borrowed, making it easier to pay back in inflated dollars.
Could you explain this to me, if for example an economy has 100 dollars, and 50 dollar is used as a loan for a 10% interest rate. Once the money is back to the owners, you have 105 dollars right? How is this possible, or is there something which I am missing.
Ne Nedir Nasıl where the 5 dollar come from. out of thin air
Rivai Bachtiar, no from interest rates...
Since the economy has 100 dollars, and the bank has 50 dollars to loan, than the person who took the loan already had money in his pocket before taking the loan, so as long as the person has more than 5 dollars in his pocket he will be able to pay back his debt and the economy would still be 100 dollars *BUT* , if the person taking the loan had less than 5 dollars in his pocket he would go bankrupt and will not be able to pay back his debt wich means the economy would still be 100 dollars.
This really helped me out, cheers
thanks
Doesn´t compound interest earning go hand in hand with inflation?
So that means that if I keep 1 million dollars in a bank, interest rates will give me 50,000 annually until I remove the money?
Lend money so increase interest rates lower inflation easy. But if you put money in bank they take your money and pay interest. The profit is lending and borrowing money
Interest is a modern way of slaving other countries into debt it may look harmless to an individual but if you look into big picture you can see the impact it had on other countries this system sucks.
as citizen of a poor country that pays billions of its precious few earnings paying back interest on loans and taking out even more loans to pay its old ones, i agree with you a hundred percent.
Taner Duman those who borrow money they know what they're doing
If they're morons wasting money
...
As a citizien of a poor country that pays billionn dollars of its precious earnings, I say that our problem are our politicians who spend our few money so badly. Im from Brazil and Im a witness. We are respinsible for our problems. But politicians, who don't work serious and right, says that the responsible for our problems are USA.
Okay, so work hard, and then loan YOUR money to someone else for NO interest, all right?
Thanks, i finally understand this
so putting your saving in the bank for longer = more interest/money i guess
"Who bets against housing?"
Steve Carrel
Housing is only as good as the governments which regulate the housing market. If it no longer becomes profitable to build a house and rent it out, THEN WHY WOULD I RISK MY MONEY DOING IT?
great explanation!
What interest? The .001% interest that amounts to $10 interest for the year on Ben's $10,000? And the $10.01 cents he will earn in year 2?
Are interest rates the same for bonds and for borrowing money?
Yes! For mortgage, loans, bonds etc.
Finally, understood the significance of interest rates.
Simple Quote's my friend's. "Life is nothing without interest"
Thank you for this week explained video. Your story telling helped me get a full grasp of interest rates concept. God bless you
very helpful and understandable video thanks :)
I'm confused about the Bank charging Ben 5% on the $50,000 and him having to pay them $2,500 each year. Does it mean Ben has to pay a certain amount of money + the 5% interest rate each year? Or does it mean that the $2,500 he has to pay the Bank is increased by 5% each year?
OK imma give it a try from what I understood. SO you will be right, Ben has to pay a certain amount of money + the $2,500 a year. Since the banks are trying to make some money they will lend you a certain amount of money but instead of just getting what they lent in return and gain nothing from it they will instead charge interest in which the person who got loaned money will pay both the amount he needs to pay back + the additional costs of interest.
This is one of the reasons why people tell you, when it comes to credit cards, to never borrow more than you can pay since after a certain time the bank will then charge you interest so now not only will you pay what you borrowed but now you have to pay an additional cost called interest.
@@deathstroke8639 Ok so let’s say I’m Ben. The Bank loans me 50k. I pay 2,500 dollars for 8 years. On year 9, I pay back the 50k they loaned me. Will I also have to pay an additional 2,500 for year 9? Is there an exact day when the 2,500 will need to payed?
You saved my ass, thanks!!
+Primetime Jake Glad we could help Jake!
So if he pays the debt over 10 years then he has to pay $25,000 + $50,000 = $75,000!!! That’s a blatant scam especially for a degree that won’t get him a job
PREACH BROTHA PREACH!!!
Should have more dramatic soundtrack. This isn't a banal topic. Actual jobs are lost because interest rates are too high. This concept should be understood by the majority of the population.
ok so whats a easy definition for interest?
This is amzing
It was a little confusing :(
Thank you so much you're the only person who has made that make sense to me!! :)
love this channel
Thanks!
Is it weird that I’m only 12 and already thinking about my future and watching these vids cuz they don’t teach it in school?
Mya Marquez not at all, learning all of this early is way better than learning it too late
keep going you are on a good track
Same Im only 13! 👍🏼
No, what your doing is good! Keep yourself educated and prepare yourself for the future
These kinds of lesson should be added to the current curriculum for most countries.
So what if someone deposited one billion what'd happen in 1 year?
How is it that the bank is paying me interwst rates when interest rates is the rate i pay them back?
Thank you so useful
What is the strongest force in the universe?
"Compound interest". Albert Einstein
My first home loan was VA at 7.25 percent and considered a good deal in 1974. Today Wall Street fast talkers set their hair on fire when bank rates are increased 1/4 %. They do not want people taking money out of the market and making 4 or 5 percent in a CD with zero risk. The idea scares them to death.
Historically, mortgage rates have been as high as 12 and 13 percent. CDs have returned a little higher than that. Unless you have a seat on the Stock Exchange, buy stocks in thousand dollar lots with the speed of a computer; you are playing the sucker to the high rollers.
Start young, save 10 to 15% of your income and let compound interest work for you for 40 or 50 years. Everything else is gambling and the house always wins.
That’s video is motivating let’s gooooo
Thank you for this!
so does this mean that People can rely on compound interest instead of a Job?
Would you allow me to use this video on a course I'm making for a fee?
So the bank has an interest rate of 5% on the loan to Ben, and Ben has interest rate with his bank account of 5%?
- No bank would function like this terrible profit. Try 0.5% for Ben and 5% for the bank. The house always wins !
But where does the money go after? They flood a market with non existent money that has to be paid back with real money, but they also charge a fee for this so the money paid as interest is taken away from the local economy.
Where does this money go and if it does not go back in to circulation it is taking away purchasing power from the economy.
They are not being paid as interest for storing money in the banks. I don't know any banks that offer even 1% rates on accounts other than apartment saving loan accounts which again benefit them with the interest they will get from the loan I will take with them for buying an apartment.
And if you know this, why would you continue to participate in such a scheme?
Thanks!!
thank you!!
Very helpful video! Thanks so much. I now understand interest rates for life, and you helped me with my summer math project!!!
Keeping your money in the bank is a terrible idea. Your money basically loses its value through inflation. Go buy a lot.
No, go create something with your hands. THAT is money. Useful tools are money. Generators are money. FOOD is money, because without it, you would starve.
usually, the inflation is higher than interest rates
I want to say something. Rich people loan money to poor people, who are desperate for it. We are so grateful to the rich people who take the risk, and loan it to us.
Great video dude!
Thank you. 🤟❤️
Awesome
what if the total intrest sums up to the loan
Wait so if he puts in 500$ in the bank a year later the bank will give him 10.000$ for keeping it in there?
-_-
No....
"Maybe" the other way round...IE;
If he put 10000 in (and had an amazing bank) he would get 500 at the end of the year.
But this only serves as an example. and is extremely unlikely to happen.
It depends on wich bank you're saving your money at, if you find a really good bank with high interest rate and monthly payment (wich is very rare and pretty much impossible) than yeah you will be given that 10,000 dollars.
Does the bank pay you interest every year until you pay off the 50k?
invalid question... If you take $50,000 from bank, the banks add 5% of interest per year until you payoff the loan taken from the bank (In this case interest also adds). Whereas in other scenario if bank holds our $50,000 they pay 5% as interest to us, as they use our cash for different purposes! Hope I made you clear... 😊
Not an accountant but I think the interest they pay you is less than the interest they charge for loan.
what bank account pays 5% ?
it's called being hypothetical
hi
hello jibbol
No bank Will give you 5% interest you must do it through a market investment
Lets say you live outside the USA. And you DESPERATELY need money TOMORROW! How much interest would YOU pay? 25 per-cent per week, 30? MORE? Right now, I would pay 100 per-cent interest on a $100 loan, and count myself lucky to get it. (And I live in the USA) (jackfenn6241@gmail.com) Make me an offer.
WHAT IS PACE? Is the amount that for our pace???
If you are a private lending institution, and you want to make money, you make loans. But if you cannot make any money from the interest on those loans, then why take the risk of LOSING that money you loaned? The interest rate should be 7 or 8 per-cent, MINIMUM!
great
Thanks man this actually helped me out
what is the difference between Central Banks and Commercial banks interest rate? Does central Banks interest rate determine how much commercial banks should charge in interest rate since they are the one who have mandate to change interest rate? please help me guys Anyone?
you found the answer to this right>
@@xastric6944 yes ... thanks for the reply
5 percent interest rates will be a dream in heaven but sadly that is not a thing and I make a couple cents from have 500 dollars in the bank ps I'm not old
Eli that’s right we are kind of an inflation rate. we are close to the zero interest rate
A certain sum of money,invested at compounded interest amounts to rs 27783 in 3 years and rs 26460 in 2 years .what is the rate percent of interest ?plz sir solve this question
By keeping is cast? or By keeping is casher? can anyone help me to understand this.. thanks.
There is a remote desert island. On one end of the island is a billion dollars. On the other end is a billion hamburgers. Which end do you go to? Which end is more valuable? Money is only as good as what it will buy. Work is money. Cars are money. Useful and necessary things are money. Cash is only a promise to pay. You cannot eat it, or use it to build a wall, or a house. Work is what you will DO!
Ben is a really nice guy I see
0:53 sooo you would have to pay $2500 for 20 yrs?
No buddy that’s every year. In 20 years you have to pay $50,000
Good video
I've learned so much. Thank you!!!
YES THANK UUU
short time explanation but it would be better if reduce the speed of explanation
Great video!!👍🏼
If you loan money, and you can only make 5 or 6 per-cent on that loan, then why take the risk?
The bigger the loan, the bigger the profit, if you loan 100,000 dollars at interest rate of 10% then you will make 10,000 dollars profit, that's why banks take that risk.
This has only further reinforced my belief that people who work in the banking industry are money alchemists
Using my credit card, if I borrow $20,000 from the bank, )which of course depending on the interest rate will be payed back In a few years) then put the $20,000 in my savings account which is technically loaning the bank my money which means compound interest will take place and by the time I'm 46 I'll have $348,988.05?
you sound like mr beast
Hola
why not helping ben with fixed amount. you pay his tuition say for 60000 dollar. banker profit, ben profit
Ben lives in a fantasy world... no bank pays 5% interest to you on anything!
a 1000s thanks, pretty informative, comprehensive and quick!
Ben is a baller
Interest it's no acceptable in islam
Dont go near interest
And without interest, why would anyone loan you money?
Remember banks pay interest of 0.1% not 5% like this video , so after 10 years you’ll make about 1100 on your 10k investment! Invest elsewhere!
Lol 5% in interest where lol
huh
Im rich because of compound interest, and I started with just $2 😎
My sister want 100 from me for shoes I tell her to pay me back with interest and I want 22 dollars each month for the span of 5 months
That's why Interest is Haram in Islam.
@onee - think I know how to clear this concept up for you. Shoot me an email michelle@wallstreetsurvivor.com :)
You guys think the bank is so great? Search up inflation rate
Lol whose bank is giving 5%?
hypothetically
OhOk