Compound Interest: How You Can Turn $200 into $500,000

Head to www.Fool.com/Start for our FREE Investing Starter Kit, it includes 5 stocks!
0:39 - The compound interest formula
2:20 - What is compound interest
4:40 - How to save money to invest
7:47 - The 50 30 20 rule for budgeting
9:26 - How to save for retirement
17:54 - Paying off debt vs investing
18:41 - How to invest for retirement at age 50
22:32 - Tax loss harvesting 101
Albert Einstein reportedly called it the 8th wonder of the world.
We call it "your golden ticket to financial independence."
With three numbers and the right attitude, you can reach financial freedom with the help of compound interest and a long investing time horizon.
If you do it right, you can take less than what you'd spend eating out for lunch in a month ($200) and over time turn it into a half a million dollar nest egg for your retirement.
We explain how in this broadcast and give you the tools to make it work for you - with tips on budgeting, big pitfalls to watch out for, and most importantly some ideas on where to invest the money you're saving away!
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[@philipcollen482]

I began my investment journey at the age of 38, primarily through hard work and dedication. Now at the age of 42, I am thrilled to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity

[@user-cr8nd1sy8e]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@SophiaBint-wj8wn]

This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?

[@philipcollen482]

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.

[@alicebenard5713]

I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

[@blessingpaul5484]

Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

[@jesbensommichael8397]

Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking the bold steps we need in other to reach our goals.

[@raychristopher7797]

I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value

[@jesbensommichael8397]

@@raychristopher7797 This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant by name *PRISCILLA DIANE AIVAZIAN* and everything changed. I started enjoying huge returns from my investment.

[@raychristopher7797]

@@jesbensommichael8397 Oh, that sounds good but how do I reach out to PRISCILLA DIANE AIVAZIAN?

[@jesbensommichael8397]

@@raychristopher7797 Look up her name on the webpage

[@raychristopher7797]

@@jesbensommichael8397 Okay, thank you. I just found her website very impressive and dropped a message for her.,. I hope she replies to me

[@elizabethyork590]

Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence. As Warren Buffet said, he has seen this happen many times in his life. Not an investor, My husband and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $4M. We have never sold so much as one share of stock.

[@MatthewVinson]

Most people do not understand the power of compound interest or are just impatient. However, for the average Joe, I think it's better to invest in the S&P 500 and wait, which is reliable, albeit extremely long: many years, or just use an investment advisor and speed up your wealth creation. Most people underestimate the power of the latter.

[@sommersalt88]

@@MatthewVinson I agree with you. I started investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money with an investment advisor and in seven months raised almost $873,000.

[@84gaynor]

@@sommersalt88 Any chance you can recommend who you work with for those of us who want to make the right plays now and be better positioned for a healthy retirement?

[@sommersalt88]

Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "JILL MARIE CARROLL" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.

[@84gaynor]

@@sommersalt88 Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@mitchellfernandez3107]

Success is not built on success. It's built on failure, It's built on fraustration. it's built on fear that you have to overcome. I pray that anyone who reads this will be successful in life

[@kevinadalberto8564]

Assets that can make one successful in life

[@kevinadalberto8564]

I.Crypto 2.Stocks 3.Shares

[@bhekanimuzikayise7303]

@@kevinadalberto8564 You are right.

[@bhekanimuzikayise7303]

But I don't know why people remain poor due to ignorance..

[@danieleban9968]

@Francesco Giovanna I totally agree with you, the crypto currency market is the most profitable venture I ever invested in, I reached my goal of $500k yearly trade earnings. Setting realistic goals is an essential part of trading

[@mavricxx]

I wish I had started investing sooner like this guy says about his kids, I would be a millionaire by now. I really wish schools taught kids about investing and compound interest.

[@Mistyfgdf]

I Agree turn 18 Soon first thing im doing is High yield savings + Broker to invest My math teacher freshmen year hated how these courses are not taught to kids (Obviously he was a math teacher so a math nerd with numbers) Well one day (only one cause it was an exam day so scedules were not normal, and we had a free day) Well instead he did a small lesson on what stocks were, and how he got like 30 dollars a amonth from dividends (At the time i didnt care, and it was boring, i minimally paid attention) If i could go back, id say thanks for trying back then, The benefit of the corona virus for me was a finance video popped in my recommendations and caught my eye, 2 weeks later i feel like im way more financially "intelligient" Atleast more than most kids my age, cause these are the same people spending on $200 shoes, while i lived frugally my whole life TLDR: Cant wait to invest and reap in compound interest, Best case scenario 1m+ by age 35

[@marcusgarvey7588]

My boys are 3 and 2 and I have started their portfolio when they were born.

[@mauricelevonte]

Why would they teach it in school? Too many cognizant citizens who would know how to manage money... not the priority here in America

[@zramp2779]

My math teacher spent the last week of school explaining to our senior class what compound interest is and stuff , can say it led me and many other students to look into this more

[@precious5605]

This is a fantastic breakdown of the steps you have to take to build true wealth. I feel exceptionally lucky I started investing in my early 30s and consistently compounded my income via assets to create more cash flow. I grew to a 7 figure mark well-diversified portfolio having exposure to different prolific lnvestments. Passive income is mandatory for building long term wealth

[@paulrivera3252]

We need to really get children excited about this. It is so so hard to get them to be patient and excited.

[@matthewmazur9579]

We need to not have children so we can prosper faster first. Always good to lead by example.

[@israellewis2]

I don’t know if I’m impatient but y’all take forever to get to the point

[@lenak1438]

🤣 it's not just you. Lol

[@marykrigbaum9021]

Yes!

[@earlwilliams1006]

yes!! PLEASE get to the points name names

[@ThriveWithLouise]

just like the 401k

[@tiggermichaelson]

For people that have an idea of where they are headed it seems long winded. However, for most people who have no idea how to save/invest, etc. it’s a proper amount of information/teaching opportunity.

[@dimitarmargaritov]

I am 30 years and just got started investing this month, in September 2020. I feel I put together a decent portfolio consisting of both growth and essential companies, so in the long-term I feel I will be fine. I plan to put around $1500 every month for the next five or six years so I can eventually fund a house construction without taking on debt, which is the goal of the portfolio. Hopefully I will be able to make it happen.

[@LP-ow3kd]

This comment is six month old how is it going? I just started investing myself.

[@leannchandler8467]

Smart Man!

[@cjstrong8381]

Update?

[@dimitarmargaritov]

@@cjstrong8381 Down about 30% currently lol. Hopefully will break even soon.

[@rajvo7406]

I think your portfolio would be even better if you invested in the S&P 500

[@abdel7649]

This is by far the best youtube channel on how to invest or better say, how to mentally be prepared in order to invest. Thank you very much guys!

[@nialld2638]

I’ve only recently done a degree in investment funds and boy did it open my eyes. In school they don’t teach compounding properly in school, they show it in a savings context and not an investment context. I’m 31 now and although I have a private pension scheme from my employer I have started my own other investments with some etfs and some traditional and growth stocks. Should have been doing it in my 20s. The 50/30/20 is a brilliant rule as well

[@jack-ls3rs]

This is quite cool and informative but Before going into any investment i will recommend you to do a bar ground check up to ensure you are investing in a solid foundation to avoid loses of funds , An alternative seek guidance from some pro trader's and more then see how happy you will be with your self.

[@lewisfair8523]

That's correct i keep losing trying to trade and investing on my own with some online youtuber trader's but I'm still trading improve my techniques, i just need a better source to invest and earn while still trading, any recommendations please?

[@jack-ls3rs]

In all my years of trading and research the most valuable insight i made was getting in touch with a pro trader Mr. Briggs Donald and ever since i started investing with him have been making cool profits like never before, will recommend him as one of the best trader have ever come across.

[@jack-ls3rs]

I'm not bragging a trial will definitely prove, i connected with Mr. Briggs via mail at

[@jack-ls3rs]

( Or feel free to connect him via WhatsApp @ + 1 6 2 3 3 3 5 2 2 8 5 )

[@arantzazubasilo106]

Wow what a coincidence so you invested with Mr. Briggs Donald also? this man is really dominating the trading zone and making things easy for his investor's, This is exactly how i got recommendations about him and gave a trial though i was a bit skeptical at first, but after investing and making cool profits with his strategies i can boldly say he's the best trader with profitable strategies, keep the good works sir.

[@Juan_Hernandez_Jr.]

Why do financial advisors always say to wait till 70 to retire? What kind of life will you have at 70? What are you going to be able to do? You're old as hell. You'll most likely have medical issues to deal with. I think that's terrible advice. Stop with the new cars every other year, the 60 inch screen t.v., etc..... Save your money in some of the things these guys are talking about, so you can retire at an age in which you can actually enjoy your retirement.

[@cancel.lgbtq.6892]

You just want instant gratification like 90% of people. Slow and steady wins marathon. Its not too late for you to start investing.

[@Juan_Hernandez_Jr.]

@@cancel.lgbtq.6892 Is that what I said? You don't know me. How do you know what I want? If you're one of the dummies that waits until you're 60 to realize, "oh damn! I haven't saved any money for retirement".. That's your problem. I just don't understand why anyone would want to wait until they need a walker, to retire. What quality of life is that? 🤔

[@Juan_Hernandez_Jr.]

@Cheryl Brown 🤣😂🤣 You got me confused with someone else. I would never invest in currency.

[@Juan_Hernandez_Jr.]

@Cheryl Brown What reasoning is that? I'm lame cause I'm not stupid enough to invest in that Bitcoin B's? 😏😏😏

[@Juan_Hernandez_Jr.]

@Cheryl Brown Yeah, and alot of people are going to "lose their ass"🤣😂🤣 Enjoy the ride😉

[@jongillies4871]

I wish somebody told me about this when I was 16 🤣🤣🤣

[@benden5095]

You wouldn't have listened. I'm trying to teach this to my 19 old right now, zero interest, she more interested in friends, IG and Snapchat.

[@walterclements1466]

@@benden5095 kick her out and i bet she'll be interested in compound interest

[@joearmstrong8560]

@Lorenzo West just keep investing my guy. I wish I started at your age. If I would have put the total of what I sold my house for at 20 into bitcoin I would be a multi millionaire right now. Unfortunately I didn't know anything about investing at that time. My advice for you is to invest in blue chips and ETFs go for the long game and stay away from anything that is "popular" the real gains come from world changing companies. But.....it take a few years to see that growth.

[@wasserpophim5935]

I’m glad I’m fourteen starting now

[@ziggyc4474]

Seems like an infomercial

[@gloriamaddison9890]

Getting to that point!!!😂😂. The question isn't at what age I want to retire, it's at what income

[@anthonycyril9977]

Exactly 👍👍This is a great reminder that retirement ages aren't fixed; they are unique to everyone. Some people will be able to retire earlier than others

[@nwokedigift3785]

People should retire when they feel they have the means to live comfortably given the type of retirement they want for themselves. For some this means collecting social security at the "early retirement" age of 62. The first point at which they are eligible to do so. Others, however might choose to wait until age 70 to allow their social security disbursement to grow over time while living off their other retirement savings

[@billypeters9435]

Retirement is ultimately what you make of it and you remain in the driver's seat at all times

[@karensophia5172]

Same with investing, it should start as early as possible and continue throughout your working and retired life

[@mitchellealexander5846]

Karen Sophie..not all investments are always successful

[@paulinajordan9047]

Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works

[@beckansmith5224]

@Lori Mata Your right . Ever since I started investing in stock I've had a very good life

[@andrewpeter6783]

Having a stable investment package keeps you financially stable!

[@jamesmorgan7066]

@@beckansmith5224 the stock market is a vast platform to invest in. It's very profitable especially when you've got a trusted professional to assist you

[@hunterlandon6280]

I'm interested in this stock market but I don't know how to come about it . Any advice ??

[@greysonrobert9246]

I've got over £100k to invest in cause a lot of my friends are benefiting greatly from stock market and I want to convert my account to millions

[@drbarr54]

Marty D stated this below... WE CAN'T HEAR YOU. INCREASE YOUR VOLUME, People can always turn the volume down.

[@katelynrenesse4798]

Anytime you want to spend money, “turn around, go home, and turn on one of these videos so the Motley fool can tell you why you shouldn't spend it, rather save it and invest into something reasonable and profitable, like I did and it was of no regrets", thank you

[@chuajunlee2347]

lol. true, investing is the key to wealth. The stock market controls a huge part of my passive income flow, I invest big and my profits come even bigger...thank god for stocks like TSLA, DOW j, NYSE made most of my profits from these

[@stanleyfujiwara1394]

yeah and i think smart investors are current trading the volatile market and not waiting hopelessly for the market stability right now

[@nataliehinnes5221]

lol this sounds like a whole other language. can't seem to wrap my head round it. I need advice. any help?

[@chuajunlee2347]

you should really get a financial advisor. That's how to beat the market and also compound interest is a good way to earn too.

[@katelynrenesse4798]

@@chuajunlee2347 hmm..i and my husband have been looking for financial guidance on increasing our portfolio.. can i get a link to yours ?

[@jredd801]

I canceled my fool subscription and invest that money instead now 🤭

[@nocturneowl2660]

VGT and VOO are in my first 2 in my portfolio. KO, and MSF

[@philg7528]

VGT and VOO. 👍

[@briannabella1940]

In this present economy The Stock market is the ultimate decision anyone can relate easily and create a wealth . This your idea make me feel more comfortable cos I applied it's recently on my trade account with $3000 deposit it's works perfectly as you said . Thanks on the advice

[@katehenshaw8440]

I will appreciate your response if my request to trade stock market is granted .

[@audberychloe2357]

@@katehenshaw8440 learn how to trade With jeffersonlewis390

[@audberychloe2357]

He's @@@ G ( mail)

[@brendcole7756]

Without A guide trading Bitcoin becomes faustrate mostly on the new investor's

[@bobbyholan2489]

I'm a militia and jeffer has been doing perfectly well in delivery profit to me without delayment . Right now I Trade Bitcoin on my mobile using Trade Signals I got from him .

[@freeaudiobooks7469]

They need to teach this stuff in school. Thanks for all the good info you guys put out

[@cbellz232]

It’ll hurt the economy

[@cactusleoni6675]

I took a class in public school called consumer math. They invited every friday a military recruiter, life insurance, etc. everything you dont wat to hear as a 17/18 yr old. I was washing dishes for $5 an hr

[@camilochaves4771]

Compound interest is taught in middle and high school in every school in America.

[@TheNuclearBolton]

There’s a service called BlockFi, you store your crypto in there and get up to 8.6% annual return on stablecoins. You can trade crypto within the account and take out loans. All you need is a penny to get started and if anyone is interested, HMU.

[@bobby1602]

unfortunately schools only teach feelings these days.

[@KyngD469]

discussion starts @ 9:45 (the video has been fixed to start at 0:00)

[@MotleyFool]

Thanks Ni - We're trimming the video now!

[@derrick19944]

Ni Tian you’re a god sent gift ❤️

[@MemeKingChangwei]

Up

[@lindokuhlengcamu519]

Jumped to 9 minutes thanks to this comment. Thank you man

[@Mikesroadtrip-ec5kp]

I have 14,000 cash. Where can I put it but not lock it up in IRA or ROTH?

[@SiddhantGoenka.Official]

I am a simple man,I see compound interest, I press like.

[@MotleyFool]

Heck yeah!

[@SiddhantGoenka.Official]

@@MotleyFool these videos are very essential for all age groups. Most of us worry of making ends meet or living paycheck to paycheck. Seldom do people give importance to the power of passive income and long term investing. If we listen and read Sir John Bogle and Mr.Buffet's life changing views. Most of us would not let the debt compounding kill our bank accounts. Thank you for your informative videos. It's truly been a fruitful day that I came across this content.

[@isabacashclub9990]

😂

[@castrorincon6179]

Success is dependent on the action or steps you take to achieve it. Show me a man who doesn't have an investment and I will tell you how soon he'll go broke. Investment is building a safe haven for the future: with the right choice of investment that has at least 1% minimum risk and with an Expert guidance, profit and interest should be 💯 guaranteed.

[@jerryassam2040]

I agree with you 💯... I had a senior colleague at work who was doing well but never had an investment. Unfortunately he lost his job and went from living a comfortable life to hardship. There would had been something to fall back on if he had an investment

[@jerryassam2040]

So I agree with you 💯

[@harrisonjerry813]

@@jerryassam2040 This makes so much sense, just like he said, for someone to invest, the person should be consider an appropriate choice of investment with limited risk level. I encourage anyone to do same with the help of an expert.

[@harryroland9333]

@@jerryassam2040 Speaking of investing, forex trading is the best business in the world right now with the ever raising amount of bitcoin. I know a couple of friends who makes a lot of money weekly trading the financial market

[@sagazmelvin9380]

For anyone building for posterity I think crypto is the next gold but the problem is scammers are everywhere.

[@htallii1069]

Vanguard Index funds and Vanguard ETFs are the way to go for long term!! Like they say, give it time, keep pumping cash into it (reinvest your dividends too), and just sit out and wait!

[@MoneyMan28]

No, invest in Real Estate or your house where you live to get higher returns, don't trust wall street crooks

[@Mudoh415]

Aren’t etfs in a bubble right now?

[@MoneyMan28]

@@Mudoh415 The stock market is at an All-Time High right now so it's time to short or sell, buy when the stock is on sale 30 percent off from all-time high.

[@Hyperpandas]

@@MoneyMan28 The thing about market timing is people don't generally time it right. For example, the markets have been at an all time high for five years now. If you had decided to short then, you'd have forgone significant growth and been seriously out of pocket to do it. The truth is, nobody really knows when the market will turn, which is why the dollar cost averaging in a low cost etf that Prajod suggested has historically performed better than the approach you're suggesting. As for your other advice, real estate (e.g. REITs) haven't historically performed as well as markets, and most peoples' homes won't provide even close to market-level returns either. That said, putting money into your home does offset the cost you might otherwise pay in rent (i.e. the consumer good aspect of a primary residence, as opposed to its investment quality).

[@MoneyMan28]

@@Hyperpandas Paying the mortgage for 10 years is cheaper than paying rent for 70 years increasing at 2 percent every year. 70 is greater than 10, just trust me on this one

[@jamesteed9850]

Learn to trade stocks and that 7-10% could be 100+ % annually. I set micro goals of 0.15%-1% everyday not being greedy at all and just taking small profits. This could be potentially upwards of 200% annually.

[@annagaddisnetwork]

Love this conversation. Easy to listen to and understand. Thank you!

[@RalphWalton]

The formula for compound interest is P (1 + r/n)^(nt) P is the initial principal balance r is the interest rate n is the number of times interest is compounded per time period t is the number of time periods.

[@oldman9843]

The most important advise is , Get out of debt and stay out of debt ! Pay off every credit card asap , cancel them , and cut them up . Down size your home if the loan is eating up your finances .

[@guillermo2k90]

Or you can use your credit card pay it every single month by having self discipline to only use what you have in your debit and then use the points, rewards, and cash backs to work for you. However I'm trying to preach to a person who probably doesn't have the discipline to walk away from a donut.

[@oldman9843]

@@guillermo2k90 What do you have against donuts ?

[@KD-mx8cw]

I’m 27 with about $2500 in debt $1200 a month salary (South Africa) Starting invest or at least form a tax free savings account for investing. I’m trying to look after my future self and I know I will.

[@luzvimindarader6394]

Luzviminda Rader 12 crescent St apt a Columbia SC 29206

[@luzvimindarader6394]

Wood Forest bank account 5142 300032522098 /04/24

[@heriffnetwork2722]

Fantastic video! I still see crypto currency as one of the best digital investment and I totally love the technology when it comes the largest crypto asset bitcoin.

[@coincentral2413]

When the market goes bearish investors/ traders loose their investment which is very painful.

[@liamzachary6088]

You can take advantage of the market now by getting an expert trader that understands the market and use topnotch strategies to make profits. I myself trade with an expert.

[@burtonclarke2193]

Hello everyone Who is the best broker to work with

[@martinreyes6330]

I found my home trading with Davelucastrades and specifically directly with him. The course work is very informative and all of this trading lessons are great.

[@martinreyes6330]

Burton Clarke Here + 4 4 7 4 5 1 2 7 3 5 2 2

[@mindsinmotion2825]

I believe that everyone has the ability to invest and take advantage of compound interest some just have to make the necessary sacrifices financially and life adjustments.

[@veritaskairos9466]

That's where I'm at...I'm on disability but I've decided to make this happen regardless

[@janembilder3835]

Nice strategy i must comprehend,Well i don’t make as much as this video claims but i earn about $3560 every week and I don’t do that by watching this video lol

[@martinacarla3587]

Earning that would go a long way for me,How do you do it? Fill me in please

[@janembilder3835]

You know crypto trading is very profitable,I invest with pro trader Erin and i get good profit in return,she is a financial advisor con tact her she’ll guide you earn

[@janembilder3835]

Erinsawtell1 @ g m a i l , T e l e g r a m Erinsawtell1

[@lacichauche6344]

I suppose you are talking about the same Erin,she trades for me too and i make more through her than i do from my job

[@raysurx2010]

Yes all your videos the sound is 50% lower than the average youtube video. Please increase your volume on your recordings. Whoever is recording level too low. It's ok for it to hit 80 to 90% peak.

[@MartyD]

Why is the audio always so low on these vids?!

[@cl759]

Not true, there is another guy, loud and energetic. Advice sounds the same to me.

[@user-yg2nu7zc4c]

@@cl759 it sounds low on phone. I had to save it for later to play through my car speakers..

[@andrewteh3059]

Maybe it was supposed to be a secret 🤫

[@MotleyFool]

@@andrewteh3059 Shhhhh don't tell anyone. JK tell all your friends!

[@andrewteh3059]

@@MotleyFool LMAO 😆😆😆

[@WestZ]

Timely video for me to watch considering we are now in a COVID-19 recession.

[@florryyoung3187]

I really don't think $200 can be turned to $500k, that's unrealistic and is the reason most traders go into long term investment with little capital and expect to get back millions as profits. I started my portfolio with $25k in 2018 and i haven't made up to $500k despite the fact that I invest with Mrs Lilian Wan. She is my portfolio Manager.

[@aranhodge4920]

you are absolutely correct about all you've said here, i'm glad i never had that kindof mentality.

[@tahliacastaneda9502]

The Stock Market is a liquidated market that has been on for ages, its only beneficial to those who follow through the right procedure. I have been investing in it and i get a good return on investment.

[@khadijasutherland3219]

I’m also an investor in the market, but i invest in stocks and bonds. I’ve been able to make a fortune of these market by allowing a portfolio manager trade for me

[@codydavid6800]

i’m new to this whole entire thing, its very stressful to acknowledge the trends in this video. I need guidance as to ‘How to become successful in this field’.

[@tahliacastaneda9502]

Hello Cody, it’s actually not really hard, trading should be kept simple trends normally shift due to the economic of the environment

[@tonnyhar72]

I just register with monthly fools and I have not seen anything interesting as they talk about the stock and better ways to invest like they do when they advertise

[@MrNGTfan123]

Acorns is not a savings account it’s a index fund along with government bonds, averages 3-7% which is not great but it’s better than nothing for people who are bad at managing money. The round up feature helps people who spend a lot. For the more educated investor this app is not necessary. But good for people who spend a lot.

[@princessleyla]

You're right but which one would you recommend then?

[@MrNGTfan123]

@@princessleyla M1 Finance

[@mimk526]

I bought Microsoft when the bottom fell out I'm in my 70s and have it in drip with the idea my son will inherit. is that a good idea?

[@johnf6687]

Mim K yes never sell Msft. And southwest air were million makers If you got in early that’s lucky 🍀

[@VIKDR1]

Not if this is your only stock. You don't want to be dependant on what happens to one single stock. Beyond that, the stock has beaten the S&P 500 over the past 5 years.

[@jetlife313]

Great idea . You’re son is lucky 🍀

[@user-ug3rj4ij9j]

How much money have you made in the stock market in the past 12 months with compound interest? Probably not much as the s&p500 has only gone up about 3%

[@MotleyFool]

That's why we're talking loooooooong term in this video. That's the way to be with investing :).

[@harrymajarian9680]

3%??? Try 30%

[@bdd2752]

@maximilian paul is this fake?

[@sparcx86channel42]

3% is in fact very good because most interst rates are now zero or negative around the world.

[@sammyalabamy111]

Dividend Growth or Compounding interest, which is better?

[@Somuchcooleronline1]

Don't follow the 50 30 20. Invest 50% or more of your take-home pay.

[@TrailBlazer5280]

Yeah honestly copy what businesses do, keep money in certain businesses in place of cash because even a slow mostly flat company is better than cash.

[@shimonnyman1138]

Yeah if you're a multimultimillionaire

[@lastdonuts]

.....how much are you assuming someone is being paid? 50% of your take home pay?!?

[@marcusgarvey7588]

I save 33%,

[@dirt32278]

@@lastdonuts weebit hard to slap 50% of my take home when my payments are 80% lol

[@withwilk7473]

I wouldn't use 7% interest as a base rate for working out these figures, more like 4 or 5%... if you wana be realistic

[@sickkunt1573]

look at the stock market over the last 100 years, average anually is about 8-10

[@canuwd2016]

Why so?

[@SUPERCHIC1989]

What is the best account to invest in or use as savings that includes interest, to maximize compound interest?

[@MotleyFool]

Like they talk about in the video, it's going to be hard to get a meaningful amount of compound interest working for you in a savings account because interest rates are so. darn. low. right now. For this discussion, we're talking about using the 7-8% annual returns of the stock market to put compound interest to work for you!

[@tedb2776]

Get into trading forex. Way better returns. I can get 30% return in a month.

[@SUPERCHIC1989]

@@tedb2776 What type of investment is Forex? Also, is it local or foreign?

[@tedb2776]

@@SUPERCHIC1989 Forex is the buying and selling of currencies. You're not investing but trading currencies online. It can be done anywhere doesn't matter whether it's local or foreign, you only need internet. Way better returns if you ask me. I live off trading Forex making about $10k in a bad month.

[@TheGreyGhost_of43rd]

Ted b teach me.. im willing to try my absolute hardest and put in whatever it takes.

[@aorjarsrelaxingvideos6126]

Thankyou ... I got my funnel working well now ... Made $38.00 in the first 10 mins .. Thankyou !

[@Atypical82]

How did you do that?

[@dilberta6046]

Shops are are tanking on Etsy right now, online sales are down altogether. eBay sellers might be doing better, but there's that 10% fee per sale. Couple that with the demand for free shipping on both these venues and there's all too little profit.

[@virginiaengler2064]

i agree. The volume is way too low!

[@luzvimindarader6394]

[e-mail]

[@lt7798]

If the government doesn’t crash the economey

[@kreem4852]

Length of time is the reason this is not appealing to most people. I mean, 40 years is a long time and according to Seymour Schulich, money loses value by 90% every 30 years. That's roughly $290K in today's value give or take depending on inflation rate. My 16 yr old son just reminded me of that. "Why not try to make $290K now. How do we do that?" he asked

[@HH-pj5bl]

Hello I just starting out "investing" and I hear yall always mention compounding, can you please explain is there a specific stock or account? to invest in? Im confused, I started an account and the money is in a federal money reserve, does that also compound or is it just like normal bank account to hold money? And does compounding work with all stock?' A lot of questions, just eager newbie, want to understand so I can retire financially worry free, and in turn help others like you guys :) Thank you for these educational videos!

[@bellajlo4128]

Your best bet is to open a fidelity investment account and then invest in a index fund and over time your money will grow between dividend and capital growth

[@TheSmartLawyer]

They specifically mentioned Vanguard, indexing, and s&p 500 fund. Read between the lines. Vanguard S&P index fund!

[@ethanfialkov7504]

I’m a 15 year old and I want to start investing using compound interest. What suggestions do you/ where can I start?

[@noahthomas8258]

You technically cannot have a traders account until you are at the age of 18 but I am 13 and I invest through my dad he buys the stocks and I pay him back my losses or I just pay the original amount if I profit and I keep the profit I have started investing since I was 11

[@investorbettor505]

Dude called etsy a year ago What a call lol

[@crazyprayingmantis5596]

Why would anyone save or value something that has an unlimited supply?

[@alexanderbreschi90]

Yes this is good in theory but how do we apply it to the stock market? Let’s say the stock you have grow in price, you can’t do anything with that growth until you sell it, but if you sell it and go and want to buy more with the difference between what you paid and what is worth now you can’t because the price is obviously higher. it’s a theoretical gain that doesn’t use the compound interest. The only thing you could do is use the dividend the distribuite (if they do) to buy more of that stock, is that what you mean? Please help me understand, when you say the stock market grows let’s say 10% you don’t get that 10% to reinvest it and use the compound interest do you? I don’t know how in practice to follow that exponential increase of earning interest on interest. Maybe with etf? But even so if you buy let’s say 100 dollars a month, they are not compounding but just buying a higher number. Let me know if you can give a practical example ?

[@FighterFlash]

These are so much better than sending me freaking advertising emails thank you.

[@paull3179]

I am bombarded with their ads and I am also a subscriber but don't bother reading most of their emails.

[@mtnbkr777]

The title is total click bate. They missed the PER MONTH FOR 40 YEARS part. But yes, compound interest is powerful.

[@MotleyFool]

It all starts with that first $200.

[@racekrasser7869]

That's chump change regardless, literally everyone can do that.

[@hypnoz7871]

@@racekrasser7869 they also missed the part where they count the inflation. In 40 years trust the me the 500k will not be the same you envisioned at the begining.

[@TheNuclearBolton]

Hypnoz 78 well then increase the $200 by 2% each year.

[@SupaChinido]

It sounded too good to be true, I click to just make sure maybe I didn't know better. But indeed no one can turn 200 to 500k

[@OPPOSMITE]

Great content thank you guys

[@everythingdaytrading5096]

The volume on this video is really low. I have my settings boosted and still cant really hear yall. cant watch

[@InvestingEducation]

Well I am startin with 150k and hope to turn it into 1million in 10 years for my youtube portfolio.

[@MotleyFool]

Seems like you're starting from a pretty darn good spot!

[@InvestingEducation]

@@MotleyFool Tks I like the motley fool alot, I just did a video abt two great writers u hav

[@MotleyFool]

@@InvestingEducation Nice, we just watched it. Brian is a fantastic person to follow -- really lives everything he writes, puts the personal in personal finance!

[@InvestingEducation]

@@MotleyFool Tks, keep up the great content!

[@myjourney2financialfreedom91]

@@InvestingEducation Compounding power !

[@raymondjones8450]

Lovely practical video hereI was introduced to my current broker Mrs Sarah Pearson sometime during the lockdown period this has really turned out a huge blessing.

[@johnrichardson2093]

I make huge profits on my investments since I started trading with Mrs Sarah Pearson, the strategies she uses are top notch.

[@jonathanmaxwell7225]

I’ve been making huge profits since I started investing with her. I earned my first $4000 in profits investing with her

[@jeremyharshfold4649]

As a first time investor I started trading with Mrs Pearson with just a thousand bucks, my portfolio is worth much more than that now within just few weeks of trading with her.

[@charlottebenson58]

You invest with Mrs Sarah too? I’m currently on my third trade with her, my wallet is increasing nicely.

[@hannahdoomsday1385]

Truly she has been God’s blessing to me and my family. I never knew she has helped this much people too, I’m a testimony to her good works.

[@johanolwage213]

Yes, always a good solid plan of you have LOTS of time. LOTS of it at current interest rates. Best is, educate yourself and find means to beat the banks at their own game.

[@Junitaco]

The question at 22:39 about reducing taxable income... can't believe these guys didn't mention an HSA

[@JamesJohnson-ic6dc]

I can't be less grateful to a woman who God has used in blessing me and my family.I was introduced to Mrs Kimberly brown for just 2 weeks ago and I told her about my plans of becoming a successful trader and he assured me 100% successful trading with her platform.

[@honeyjackson8125]

As a new beginner in binary options trading you need a professional broker like Kim to assist you in trading bitcoin.

[@michaeladams622]

Binary options trading is the source of living my dreams in life with a little sum of capital I got a profitable returns.

[@sarahsamuel3868]

At first I was afraid to invest due to the High rate of scam online until I came across Mrs Kimberly brown she proved me wrong with huge profit in returns of what I invested.

[@miraclejoshua4116]

Making money trading forex is easy and awesome when you have a genuine trader to put you through.

[@hernandezmaria1888]

I can't tell how she gain in making profit for individuals under her platform including me I'm here to testify how good work.

[@MemeKingChangwei]

Good talk

[@MotleyFool]

Thanks Changwei, glad you enjoyed it!

[@Exercisewithleah]

Hey. When it comes to buying a stock should I set a take profit or not?

[@stevenkurt32gmailcom90]

Greetings mate, this is Very Insightful content However personally I feel, those who would allow the market dynamism determine when to trade or not are either new in stocks / crypto currency world in general or probably just naive, stocks and crypto currencies have seen far worse times than this , Enlightened traders continue to make good use of the dip and pump even acquiring more equities towards trading sessions. I know doing Technical Analysis can be quite difficult which is why most newbies / traders neglect day trading their coins and stick to Hodling which is very dangerous as when the market goes bearish, they loose their investment. 'The strongly advise any newbie / traders to buy the dip and seek help from not just any trader but an established trading expert with at least 89% trade accuracy. I underwent series of trading loses'd best not talk about before l was introduced to trading analyst Mr.Elvis Hercules My contact with him has been the Hallmark of this year for me, under his careful guide and his signal service I've been able to recover my losses and even grow my trading portfolio massively from 13k to 50k in just 5 weeks. I wil | advice traders esp newbies to have orientation of trading before they involve in it. Mr. Elvis makes you learn daily while you make profit with his signals. He can be contacted, at 📧 ([e-mail]

[@tjmanou6422]

Is it better to invest in stocks every month ($500) no matter how high/low the stock price is or wait till it is relatively low than buy in bulks please? Tank you

[@joshcooper7]

Buy every month. It is called dollar cost average. Also don't buy individual stocks, stick to mutual fund/ETF to get a piece of the whole stock market

[@Blancheivey]

The stock market has the highest return rates of any investment asset over the long term. With the aid of the trading services provided by Lance Ingrid Bernthal I’ve been able to generate a passive income streamline

[@kevinleyles1193]

Blanche Ivey that’s interesting, i hear a lot about these trading experts how does it work actually?

[@Blancheivey]

Kevin Leyles Working full time leaves me experiencing lapses in trading effectively so I have him trade for me with his vast knowledge and outstanding market tactics. Was a bit skeptic at first but I guess life is all about taking risks

[@kevinleyles1193]

Blanche Ivey seems steadfast enough, he can’t be doing this for free so what’s in for him anyways

[@Blancheivey]

Kevin Leyles That’s correct!!! he isn’t doing this for free that’d be suspicious don’t you think??? he charges a 20% commission on the cumulative amount of profits generated on your behalf

[@kevinleyles1193]

Blanche Ivey indeed it really would be suspicious. I desperately need more enquiries on his services how do i reach him?

[@moneymotivationmadness3275]

I wish I had a 10 year time machine. I'm 28. Lol

[@moneymotivationmadness3275]

@@Jakub.K0 great!! I started my research phase at 23. Bought one small mutual fund for a test run. Don't do that. Mutual funds are the devil. But i learned alot. Then i lost funds and had to wait. But I started back up at 27 and I've deposited 16-17k. I gotta catch myself up. Lol. The corona crash compresses time lines. You can exponentially increase your money faster. Good luck.

[@jlo5470]

I’m 38 and just getting started. I wish I started 10 years ago

[@brewstanton9844]

@@jlo5470 but you are doing it now.

[@paddyoak1]

Lucky you. I’m 45; FINALLY got into investing last year.

[@KeithLburns]

@@paddyoak1 thats still better than never

[@thefinancedude9100]

Hi The Motley Food, you cannot use a average return on a compounding interest calculator. because a compounding interest calculator assume that the percentage you have entered is a constant value that never changes. compounding interest calculator does not factor in losses only gains of the % you have entered. compounding interest calculator also assume that your selling your investment at the end of the year and reinvesting it again to "compound the interest" so tell me how did your calculator cheat in 2008? or did it ignore that the S&P 500 in 2008 dropped -38.49%? unless you own a credit card company and your racking in the same amount if interest every year from your credit card scheme, what your explain in your video doesn't work. if your read a compounding calculator result there is never a loss, and it assume your selling at the end of each year and then reinvesting it again at the begin of next year. so how does the compounding calculator take in to affect S&P 500 2008 -38.49%? do people to sell out at the end of 2008 at a loss -38.49% and rebuy the index again at a loss? compounding interest calculator and using an average return doesn't work hahahaha

[@El_Cid-40]

TheMotleyFool's Jason Moser @30:36 uses historical market data (starting all the way back to 1865!) to predict the recession of 2020. Man, I was a follower of the Fool before, but now I am a fan.

[@herlockholme7321]

Audio is very low!

[@cryptosavy7477]

Keep learning and practicing, hard work pays off in all trades, These were Mr Graham Stephan words to me that made me realized that the market is really profitable to all and it has been my holding back

[@vanessafadyla2169]

I love trading with Mr Graham Stephan. He doesn't require extra fee before you receive your profit

[@diegoksouza9346]

My account is currently $140,000 what I earned from my $25,000 investment with Mr Graham Stephan

[@admin5736]

I lost about $5,000 to a scammer before I was linked to Mr Graham Stephan and believe me he helped me recover the $5,000 and made an extra of $10,005 in space of a week and 3 days

[@kagneykarter2848]

Have you ever thought of making investment to get good profit..Try bitcoin investment with Mr Graham Stephan

[@stevenedmonds6751]

Haha you don't have to be surprised Mr Graham Stephan trading services are really good and everyone loves genuine service they've helped me recover what I lost trying to trade on my own

[@thatgymboy0171]

So is compounding interest, Investing say $200 then once it goes to $400 for instance you sell the dividend and re invest it?

[@oliverzink6370]

you should be considering BVT for 2020 and the years after! TSX.V: BEE FSE: 1UR1 OTCQB: BEEVF This will be the biggest rocket for the next decade !!! Chance of 1000x ?!

[@pd783]

Oliver Zink no such ticker as BEEVF...

[@yoelor09]

If i get a 100k a day. By day 1 i send that money to work... Profit

[@Noanator]

I just opened my bank account a couple months ago and have under 2,000 in my savings. Is it a good time to start an investment or should I wait until I have more in the account. This video was really helpful. Took a lot of notes thank you.

[@begaqincer]

Noanator start today, time is the biggest factor .more time =more money

[@terryharris1291]

Have a look at investing through M1 Finance.Start with a small amount and add to it each week or month.Until you feel confident in what you are doing.Joseph Carlson on you tube ,has soon good video's on using M1 .Go well.

[@daejonmoody3304]

I’m in the same boat but I’m going to beef up the savings more for a solid strong foundation

[@istvanpraha]

Well most brokerages went free a few weeks ago. Ameritrade went from $7/trade to $0. But the markets are pretty high right now, so I might put some in a high-yield well-known dividend stock (VZ, T, TU, ABBV), but not put too much $$$ in just yet, as of October, and wait for a dip.

[@tedb2776]

Get into trading forex. 2000 is a pretty good amount to start with considering i've grown $100 to over 140k trading forex. I make five-figures a month.

[@thegamergeek1534]

Graham Stephan: Why u drink starbucks make some 20 cent iced coffee

[@matthewmazur9579]

Why you drinking and smoking and eating out every day

[@krihanek117]

#1 Max out our HSA, health savings account.

[@lgalina997]

It does not inspire confidence when the Fool defines Compound Interest to be = Your Money*(1+i)^n. See the formula at ~2'00".

[@MrC0MPUT3R]

It's technically not wrong. If you assume you'll only apply interest once a year the formula a=m(1+i/n)^(nt) can be simplified to what they show. If n = 1 then i/n = i and n*t = t

[@bx8321]

That is actually the text book formula.

[@leisuretime9177]

Besides the S&P 500 Where can I invest to get the 7% growth annually for sustained years?

[@DEK981967]

QQQ

[@idreeselane9542]

Aggressive growth mutual fund

[@philg7528]

I have the VGT. It's a tech stock ETF that is paying higher dividends than the QQQ. Both have consistently outperformed the S&P 500 but is more volatile. It's definatly an aggressive investment. I'd recommend seeing a financial planner if you're not sure which direction to take.

[@TheSmartLawyer]

Vanguard has many excellent funds.

[@Axel-mm4qv]

43~ years to go from 200 to 500,000 if you are averaging 20% per year (good luck with that) and then you have to adjust for inflation so it goes down to 200/300,000 if you are lucky and then on top of that you have to pay tax so your turning 200 into 100,000 even with amazing and consistent 20% earnings per year smh

[@njoysuccessnow]

Arbitrage Airbnb is a great idea or start a high in demand service business with an automated model, establish BUSINESS CREDIT and migrate into real estate investing over the next 10 yrs or so.

[@CustomSneakers]

I wish I had this information explained to me like the three gentleman explained 20 yrs ago. TIME is everything.

[@MrMakemusicmike]

I think that every day

[@Kj-gn2ex]

Money=Time 💯💯💯💯

[@sachinmore6832]

Other videos : Compound Interest explained (EASIEST WAY) = 1 view This video : Compound Interest: How You Can Turn $200 into $500,000 = 500k views

[@tigerrx7]

Why does everyone keep focusing on the bits when they talk about cutting expenses!? If you’re living in a house or apartment that is excessive and expensive, choking you financially, you need to cut your housing expense. That’s $500 a month right there.

[@cryptosaiyan7267]

I love it. But one thing people don't talk about is COMPOUNDING FEE'S. Mutual funds and 401K are the worst of breeds. And why save? The interest on saving gets taxed at the highest rate, working income rate.

[@I-Know-Best]

Use index funds instead like an s&p 500 index fund. I use fidelity’s which only has .015% fee per year which is pretty good. I think vanguard also has similar fees as well.

[@adamlake3003]

A million thanks for putting out such great content. Very, practical and informative...

[@chaosdream21]

Volume too low. But good show.

[@alapatikumar1373]

can someone explain, how to double $200

[@nunyabuisness21mill]

Yup, 1.buy a lawn mower with it. Work hard 2. Buy chickens 12-14 should do make a coop buy chicken food. Sell their eggs 4-5$ for a dozen at an egg a day from every chicken it add as up quick.

[@epemsley3787]

Been working on this and came up with a reasonably good approximation equation for all [1=

[@AnythingMike]

EP Emsley I’m not ashamed to say i do not understand what you typed!

[@epemsley3787]

@@AnythingMike That's okay. This is probably not the right forum to try and convey calculus. ( Not that you need to understand calculus to be successful in the markets, if anything it's probably a distraction!)

[@AnythingMike]

EP Emsley Hmm, well said, what are your thoughts on the current state of stocks out there, do you think it’s a good idea to put 1000 dollars in bitcoin??

[@epemsley3787]

@@AnythingMike 80% of my portfolio pie is in Tesla so I'm going big on Elon to deliver over the next few years. Regarding bitcoin, I don't understand it so I don't get involved.

[@AnythingMike]

EP Emsley okay, thanks for your insight, it is well appreciated.

[@heleneric3648]

Need to be disciplined, have a plan and you need to stick that plan. Risk management is important, no matter how sure your next move I suggest investing is the future plan, It requires money to make money. this is the best secret I have ever discovered we don't make money, we EARn and MULTIPLY money

[@user-nw5hh5gp1m]

Most intelligent word I've ever heard👍

[@digitalassetsdaily2378]

Bitcoin is the future, Investing in it now will be the wisest thing to do especially with the current rise

[@juanhenandez1109]

@@digitalassetsdaily2378 Exactly!

[@sortokeith4692]

Seems the crypto market is overtaking the stock market in the recent bull run haha

[@gabbytony3597]

@@sortokeith4692 Stocks are good but i swapped and invested in forex, Bitcoin and other Cryptocurrency. I have been making good profits.

[@PaulHardingham]

And yet, how many people have actually turned $200 into $500,000?

[@YoungDen]

These guys are talking about long term.

[@PaulHardingham]

@@YoungDen Yeah, but in practice no one has that long to wait. I'm talking about reality vs theory. Theory doesn't make you money.

[@roninbushito]

@@PaulHardingham yeah its all theoretical i doubt it could turn into that much money. I rather invest in real estate actual property. Unless you won the jackpot than making money is not easy as people claim and there's many scams out there too.

[@happymolecule8894]

​@@roninbushito It could turn into that sort of money. And it'll turn into that faster if you get into RE and leverage

[@samueldarchibong9841]

Am putting aside 35% of my income for savings and hopefully invest in what you gentlemen are talking about

[@RahulYadav7]

Jason's idea to buy Etsy aged really well. The stock has just soared!!

[@Moneykingkevo]

Can this happen in a brokeage account i got 7 stocks in the green 3 in the red

[@24_AB]

Moneyking Kevo what color they are now doesn’t say they will be that color in the future

[@Moneykingkevo]

@@24_AB great advice

[@Javidfarali1980]

PLEASE INCREASE THE VOLUME ON YOUR AUDIO OUTPUT also thank you for the good video

[@drkevincampbell]

www.freewealthsystems.com

[@Moneykingkevo]

I invested in docusign they dont pay a dividend should i still reinvest into the company ???????????

[@ohhmesohungry584]

I just invested in them too! I'm so excited for the future of the company. I think it'll be life changing for investors on the ground floor!

[@Moneykingkevo]

@@ohhmesohungry584 i believe the company got way more room to grow...everything going digital and docusign company is all about that when i did my research on them they got ties to apple google Amazon etc...this stock in my eyes is still undervalued

[@jonathanduran5502]

Hi @themotleyfool I have a question, in the interest compound formula, how can I calculate the impact of inflation? Thanks