Here's How Long It Takes To Become A Millionaire

[@SteveDutton-v]

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars

[@PASCALDAB]

Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?

[@PASCALDAB]

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 email shortly.

[@dianarabbanii2]

The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?

[@angeladeem2988]

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.

[@SloanJane-xp4kr]

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

[@ClaudiaSchreiber-b1p]

impressive gains! how can I get your advlsor please, if you dont mind me asking? I could really use a help as of now

[@Robbertskypes]

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.

[@StressLessFinancial]

Absolutely, investing can be both exciting and daunting. Leveraging compound interest effectively is key to growing your savings. What strategies have you considered or used to harness the power of compound interest and move closer to your $1M retirement goal?

[@garrickphillips-x1z]

I need at least $2m today to be considered 'wealthy' 20 years ago, the definition of wealth was nowhere near $2m, and in 20 years time, this amount may not be enough, however I do agree that one has to start somewhere, hence I now look to the stock market to fuel my goal.

[@everceen]

wise observation, for many years equities and some fixed-income assets have produced yields needed to provide solid income for financial needs, the importance of mitigating risks could be why investors are turning towards advisors for guidance

[@beautifulpeopleonearth]

Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.

[@justamanwithbeliefs]

bravo! mind sharing info of your invt- advisor please? tried learning few strategies to profit in this current market, but all of that flew right over my head

[@beautifulpeopleonearth]

I’ve shuffled through a few advisors in the past, but settled with ''Katherine Nance Dietz" she's the most resourceful, extremely intelligent, cautious, and shows a great deal of expertise, you can vet her info online.

[@justamanwithbeliefs]

thanks for the lead. I just searched Katherine by her full name and easily spotted her profile, no sweat. I have sent her an email, hoping she gets back to me soon

[@jacnelson3423]

Thanks for the update, keep up the good work.< Learned a lot from my market journey, especially the importance of living within one's means. With Shea Ardolf’s guidance, my nest egg has grown to a 7-figure sum. My advice - get an analyst for better financial trade decisions and peace of mind

[@jacnelson3423]

Shea Ardolf program is widely available online..

[@lucaspaciello866]

Insightful comments, very much appreciated.. just came across the consulting page of Shea Ardolf after inputting her full name on the web, super impressed with what i've seen so far

[@dorothyweller7736]

Thanks, I just googled her I'm really impressed with her credentials. . I will write her an e-mail shortly.

[@chesteradams9764]

Reason i invest in the crypto market; to make my money work for me, to prevent inflation from eroding my savings

[@normandholland8374]

Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience..

[@phase2re]

The best returns are made by the people who forget their passwords.

[@crimsonpirate1710]

I like this and its very true.

[@BillyCarsley]

The first million took forever. Before we realized we had the first million, we had the second million.

[@steveno7058]

How is that even possible. You suddenly had $1,000,000 more in your accounts then you realized 😂

[@BillyCarsley]

@steveno7058 because it's automatically deducted and we never look at it.

[@dnajournal4321]

​@@steveno7058 I bought a house. It doubled in value over 7 years from 500k to a million. Then it double again in 7 years to million. It took me 25 years to get to that first 500k house.

[@mapmanlxii1715]

This should be used in high schools to educate the next generation of workers!

[@Vanguard-c1u]

They do (I was a high school principal and had to show my staff, as well as my students). People would rather buy expensive cars, clothes, or travel. BUT, I saved $70 per month in a 403b, and after 10 years, I had no where near the numbers demonstrated her.

[@mapmanlxii1715]

@@Vanguard-c1u me too I always threw money in 401k but getting a flat 8 9 or 10% is crazy it doesn't work that way. Rob should redo this with 5 6 or 7%

[@Fold-p5c]

​@georgeroesser974 you understand that one school doing this doesn't indicate that schools do this in general, right?

[@Acvdsxbfz]

Our economic system is not set up to benefit workers. That’s why this information is not taught in the schools.

[@matthill2957]

Everyone at my work believes a 401k is usless even though my company does a 6% match and profits shares 1% of its profits with us turns up to about 4500 a year per employee, I usually get 15% returns on my stock package I have chosen.

[@CATRINAHK12]

This video indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. What would be the right investment to generate more income to retire with at least $3m for long term care?

[@YNZUNZA-s3p]

@JIANHENGLUG i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well

[@YNZUNZA-s3p]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@Christensen554]

You're only as good as the decisions you make today with the money you have. This time last year I considered getting into stocks without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. One year and a couple of months in, and I'm almost debt free. I truly cannot stress enough how helpful experts in this field are!

[@Sithembile499]

How are able to make profit? It’s not just clicking for me I don't know what I'm doing wrong.

[@Christensen554]

Jonas Herman, a certified fiduciary is the brain behind my success. I've gotten into a plethora of assets with $13k spread across stocks (options and futures) for the short term and, index funds, and ETFs, for the long term. Now with over 87k, I sit back and just reinvest at intervals while I focus on my job and family.

[@Pathston]

To me, stocks is not worth it, just too risky and I know that's the same mindset holding me back from taking a step forward in my finances. I guess I'm just scared since I'm green to it.

[@RareLovesunflower]

Just clocked 52 some days ago I hope it's not too late for me to start investing. How can I connect him? It's just so much going on for me right now.

[@Christensen554]

Hermanw jonas that’s his gmail okay

[@pritamrp]

Great video, I made the same in google sheet but tried to add inflation to the mix to see what level of contribution is required. Might be an idea of next video ;)

[@AgileSnowWeasel]

It's just easiest to factor out inflation at the beginning and take it off the assumed rate of return, ditto with the fees. Just calculate everything in terms of today's values that you understand and can relate to.

[@robertmeyers3640]

It took me 40 years for 1st million and 12 years to 2 million and should take 6 more for 3 million. But hey, I’m 70. We’re not trying to build net worth anymore but with kids gone,no mortgage and natural slowing down, we don’t spend as much as we did when we were young.

[@TaylorOpee]

@@robertmeyers3640 very true

[@matthill2957]

At 10% return rate that 3 mill should give you 300k every years and should double every 7 years. You clearly dont have your investments growing good enough, but sounds like you can afford a nice getaway lake house or Caribbean home

[@whatta7793]

@@matthill2957 I would imagine he is spending his investments considering he is 70. Probably has grand children to spoil, too.

[@navymathboy]

If you factor in say a flat 2.5% average inflation rate, a million dollars 40 years from now would have the same buying power of around 372k in todays dollars. In order to reach the equivalent of a million dollars in todays dollars but 40 years later (i.e. roughly 2.6 million), and based on your assumption of a 9% return, a savings rate around 565 dollars every month would be needed. Like x2.6 more than stated. Good point you made with the power of time.

[@javiersterling7599]

I completely agree and the compounding curves at 6% or 6.5% (assuming 2.5% to 3% inflation vs the 9% returns proposed there) are much less powerful in the longer time horizons. It also ignores taxes on the returns whenever applicable. But in 6:07 he makes a very good point: it's reasonable to assume that you can increase your monthly savings to counter that effect. We can add that to the model.

[@METVWETV]

Yes, increasing your contributions is key and, I'm speaking to the savers, you know when you start to see your portfolio growing you get bit by the saving bug! Budget, cut out waste and save every dollar you can!

[@samrusoff]

I wonder if you watched until 6:04 ... Hmmmm

[@CokefishR]

I'm about 6 years in. It's a miserably slow grind. You think of all the enjoyment you could have if you had the money now. But you have to slowly earn it until you're outpaced by complications from sitting in an office all day, medical problems, marital problems, not having the same energy from when you were younger, etc.

[@chasingpowder200]

The content that will likely have the most impact on someone's life is free and from someone who has comparatively very few subscribers.

[@davidfarr1093]

Best simplified explanation I have seen on the 3 keys to investing; time, return, and fees. Sent to my kids, hopefully they watch

[@barneyfyfe8313]

Just run for Congress. Quicker and no restrictive laws to worry about.

[@brakmaster]

I started investing in 2020 at age 36. I'm closing in on 100K, maybe by the end of this year or next year. I believe within a decade I may be able to reach $1M. I'm currently investing $1300/month but I will be upping this amount every year by 5% until I reach my goal. I will ease off at the million dollar mark.

[@cwaters3700]

I wish you had shared this spreadsheet. Fantastic tool!

[@DavidDLee]

For the 20 years x $1500/month use =-FV(9%/12, 20*12, 1500, 0) (Google Sheets, Excel etc.) You're welcome.

[@LarryWebb-gv8dz]

I got a nice screen shot when the spread sheet was full but yeah it would be nice to have that spread sheet calculator

[@oliverdefusco6313]

He's using google sheets and the formula is FV, google will get you straight to the documentation page for it

[@METVWETV]

Investment Calculators are plentiful! You can get apps or go to websites....

[@Darrel-d7f]

Thanks Rob I sent this to my sons 26 & 29 they are already investing, but this reinforces what I've been preaching. db

[@josh9231]

I shared this video with my brother who is showing it to his kids. You are a great educator, thanks Rob 👍

[@clarkazimut1065]

What I've learned from this video is that by the time I was born I should have been investing in the S&P500

[@Novaximus]

but you won't learn this until you're in your 40's...

[@AKINALTIOGLU-r8i]

@@Novaximus you re talking to 41 years old man who re just learning stockmarket

[@Novaximus]

@@AKINALTIOGLU-r8i :) It's funny how priorities change. In my 20's and 30's I would just surf right past CNBC and anything "financial". Then you get tired of the work grind and worrying about your health and future. Suddenly, at 40 entertainment isn't nearly as interesting as consuming media about how to get financially free.

[@chasewrenn7109]

Took me 8 years, no inheritances, only now started making over 6 figure salary, just saved 60-70% of my income and invested in index funds!

[@robertryan3490]

Great video!!! Its a game changer if the person watching is truly able to understand what is being said.

[@davidpowell3347]

Most people I encounter have little concept or appreciation of inflation or its magnitude.

[@markgregotski8973]

Rob, would you please consider a podcast showing your actual ETF/allocation percentages over the last 10 years, so we can see how you adjust your portfolio. Obviously, you can omit the dollar figure in each allocation. This would be very much appreciated. Thank you!

[@martintancer156]

I second this!

[@carlyndolphin]

Mine is 100% global equities with Vanguard 63% weighted on North America. I think that America will probably outperform the rest of the world but I think owning a fund with some global equities helps soften the blow during a down turn

[@Lolatyou332]

I'm 31 and even if I don't invest another dollar and only get 7% returns I'll still have 2.2$ M by 65.. I'd rather keep saving 2-3,000$/month and retire early / mid 50s with 2-3$ M assuming a 7% return, if markets still return close to 12% over that period of time and inflation is only 3% it should be closer to 3-5$ M

[@Melior_Traiano]

Shoot for the moon. Even if you miss, you'll land among the stars.

[@AgileSnowWeasel]

My advice to any 20-something with a degree is to bullshit your way to a higher salary as quickly as you can even if you have to jump jobs frequently before you are found out. By the time you otherwise have the decent wage you have a house, kids, and responsibilities and you cannot take those same risks to get higher salaries.

[@BarnabyBarry]

Get a CALPERS pension-100 K USD annual-retire at 55-if you live until 90-around 60 or sooner (you can work another career-work lots of OT over the years)-may qualify for SS as well

[@JenniferPearsonJP7]

I love that you showed starting at 5 years of age. Beyond the educational aspect of making the child aware of it over time, that's a huge financial gift to a young adult who then only has to maintain the $35 (in theory--I understand the variables) rather than finding $200/mo.

[@Lolatyou332]

The thing is, it's mostly irrelevant as you should be investing in your own portfolio rather than your childrens. The children will ultimately inherit anything that's left over, but for retirement it's similar to putting on an airplane oxygen mask. Put your mask on first before your children. You don't want to run out of money and then depend on your children to help you through retirement for what social security doesn't cover. Only thing worth saving for your children is for college through a 529 plan.

[@METVWETV]

​@Lolatyou332 I'm with you 💯%!! However, $35/month is nothing and when you show your kids How much money "they have" and their eyes light up.... It's a teachable moment! What I did was set up accounts within my own portfolio and simply named each of those accounts with each child's name, Ie: "Tilly's Investments" Then, when the market has performed particularly well, I show them "their" account.

[@flexiblehorse12]

Great work, Rob! Thank you. Just sent this to my thirteen year old niece!

[@janethunt4037]

I think about this when I see a person buying a fancy drink at a well known coffee shop wondering if they might also be putting the same amount into savings that day.

[@tysone1254]

I opened my roth ira when I was 14 so im glad you showed the scenario when you start at age 15!

[@rick_vv7754]

With 3% inflation, in 25 years $1 million is equal to a present value of $477,606 with annual compounding. For investment returns, there is a difference between simple arithmetic returns and real life geometric returns.

[@atruewhiteknight3044]

great video mate

[@Rocky77756]

I get the idea itself but I think we should always assume a lower return number maybe it’s closer to 7%.

[@karenduplease]

Great video I wished I had seen in my younger days

[@hartzogLovesScience]

Back in the 1980’s, when bank accounts gave much better interest rates on savings accounts, I did the math on how $1 million can support someone for life. Little did I know, but I touched upon the 4% rule. Today’s $1 million does not provide the same security as then. But your insights and information has helped me develop a better understanding of how I need to position my finances as I approach retirement. Thank you!

[@richardgordon]

I wish I watched this video when I was 20 years old!

[@thethinkingstone9248]

On track to do it in 10 years……O-H-I-O! Subscribed.

[@glennshoemake4200]

AVGO has had a 5 year total return of 481%, so we can be conservative and say 50% return per year seems doable for a growing company. YTD they are up 48% not including dividends.

[@glennshoemake4200]

@Rob-lnvest ok I just unsubscribed, great advice.

[@frankbell1408]

From $10K to $110K that's the minimum range of profit return every week I think it's not a bad one for me, now I have enough to pay bills and take care of my family

[@joekuul8769]

ROM Spaceknight #1 in the background...awesome! I still have mine, bought off the rack when I was a kid. As for a million bucks, I'm not there yet, primarily because I spend too much money on books (not comic books anymore, though I did buy them until I was around age 30). If I'd only bought my very favorite books and used the library, investing the unspent money, I'd have many more millions by now. Still, I'll be there, net worth wise, in a few years, and liquid wise, before full retirement age, if historical returns are anything to go by.

[@alcw625]

thanks rob, sent it to all my young adult kids so show the power of compounding over their lifetime

[@slovelien]

Great short Rob. Sent it to my 20 something boys(3). They also have your book.

[@hownwen]

We did it in 13 yrs. Me 55. Hubby 60. We are 80,000 over a million 😁

[@whatsup3270]

That would be $3,500 month at a 10% growth rate

[@geovannyl.2801]

Yep, the last 13 years were amazing. Congratulations!

[@charletfoster8917]

👍🏿graph that needs to be seen by all

[@TripSoul10]

Like to see a similar video involving being a multimillionaire or how much & how long to hit $2 million. Many of us in future feel that is the number we need for comfortable retirement.

[@Snerdles]

If you started 60 years ago, in 1964, putting away 35 bucks a month or 420 bucks a year, when the average salary for domestic indistries is around 5500 bucks (or around 7.5% of income) then after taxes today you might have enough to buy a house. Nice!

[@pattyk8594]

Excellent video thank you!

[@chucksw1]

Looking forward to your list of low or flat fee Advisors, I NEED ONE NOW!

[@oscarsosa9503]

Great video! Thanks.

[@richardm.441]

If you dca, you will do better than the market. I started a job in 2002 with no match, and I maxed the 457 account for 13 years when I lost my hob. I probably put in 200k, and now it is 1.3 million. I calculated the return, and it was 12.5% even through the lost decade.

[@aaa4181]

Already been proven that lump sum > DCA

[@70qq]

anyone doing DCA from 2000-2009 (or near that time like you) and maxing out 401k or similar is a millionaire now , cause they were buying stuff so cheap during the worst times ... but lump sum would of probably gotten you more ... DCA isnt always the best , but its safer to avoid regret since no one knows the future ... and most people dont make $23k per month , so lump sum into 401k isnt an option anyway usually ... congrats and good job !

[@richardm.441]

@@70qq I am trying an act 2. In my current job I have a generous match so I will probably put in 23 k this year and get 10k from my company in addition to my contribution per year. This 401k is 100%us equity index as well. It currently has 243k. Once this one hits 7 figures , I think I will retire. Hahaha. I hope it can be accomplished in 7 years.

[@whatsup3270]

$100,000 invested (or a balance of) at the low (2009) would be worth $400,000 today. A typical earner would have added about $160,000 in contributions and growth since then so $560,000 is more accurate. People tend to really miss these estimates.

[@richardm.441]

@@whatsup3270 No, my number of 1.3 million is accurate, because it is what I see. I do not see how you arrived at your numbers though.. The low in 2009 on the S &P 500 was 666. If we use a round number of 700 as the low instead, we clearly see just on capital appreciation, it would be 8X on price since the S&P 500 now stands at 5600 now. That number does not even include dividends paid over the past 15 years which would have made the return more than 8x without even putting in any new investments.

[@funnlivinit]

I'd like to see 2 more columns added. E: Rate of inflation F: Value of column D in today's dollars. Then shoot for F to be $1M. A much more valuable analysis.

[@funtechu]

It's actually much easier. If you inflation adjust the amount contributed over time and then find the present value of the final balance accounting for inflation, it's the same as just keeping everything in today's dollars and adjusting your rate of return. So for example, if you want to account for a 2% inflation rate, reduce the annual return by 2%.

[@ccrider8483]

I realize it is difficult to predict inflation or dollar devaluation, but in these days of federal over spending it is a big factor. I recently had a solar power company wanting to lease some of my land for 20 years. I told them that I would not consider agreeing to a lease unless there would be an inflation adjustment annually. I don't think they will be back.

[@kevinschultz6091]

Yeah, for investment, the S&P 500's annual rate of return historically has been 9 percent. Adjusted for inflation, it's 6.25 percent or so. So use THAT number, and you can calculate it more easily.

[@JM.5387]

@funnlivinit That's a roundabout way to do it. Simpler is just to subtract the average inflation rate from the average rate of return. But he already did this: the average S&P return over the last 50 years was 11.47%. When adjusted for inflation, the 50-year average was 7.39%. (He used 8% and 9% for illustration purposes; feel free to be as conservative as you want.)

[@kevinschultz6091]

@@JM.5387 - hm. I had heard this (that the ROI was 11%), but when I went to look it up the interwebs said that 9% was the unadjusted rate. OK, just checked again - according to Investopedia, the average is 10%, and adjusted for inflation it's 6.3%.

[@OnCashFlow]

The beauty of financial independence is that the math is the same, your ending age doesn't have 65+ If you can save and invest a certain amount each month, then you can reasonably expect to achieve FI at practically any age.

[@BiggMo]

Rob… the power of compounding is diluted by inflation. You need one more column showing what compounding inflation does to that million

[@Melior_Traiano]

Very true. Realistically, you can expect an inflation adjusted return of 5% on stocks.

[@Freemarkets1236]

Well that’s why he mentioned it and said you should invest more as time goes by. With raises for example. The point of the video is compounding and time. The target goal is different for everyone.

[@Omar-et7sb]

I am always a pessimist (aren't all Bogleheads?) so, I run my own calculations with a 6 or 7% return (even though I am all-equities on my portfolio). While not perfect, I like to run exercises like these. I feel they keep me motivated!

[@davidpowell3347]

I have a suspicion that real returns could be (annual) 2% after inflation and tax drag. Even when using "tax preferred". Using a "balanced" mix of funds and bonds/cash. Or a single "balanced" fund or fund of funds.

[@sethdickfield2949]

Do I see The Power Broker over on your bookshelf Rob? Respect if so. Great book.

[@abdulrahm4457]

Perfect

[@georgechiu3636]

Rob, I think you should mention company match in 401K plan. That can be substantial. If you work for a good company, the company's match in 401k alone can make you a millionaire in 30 years.

[@Arkvin-s4w]

Yes, if you work for a good company is the key. Majority of 410k’s are not matched anymore this day and age, plus most of 401’s have very high fees .

[@Italo008]

Hello, Rob, I can't find I video that you tell us what your favorite retirement spending rule. Can you tell us?

[@deuceaces8114]

Is this 9% a month or yearly compounded?

[@levigoldson]

He glosses over with his "i know, inflation" but let's be clear -- you need to adjust it for inflation the longer your outlook . For example, with that 60 year example of 35 dollars a month... that 1 million dollars by retirement is only worth $100,000 in todays dollars if history repeats, and let's be real -- inflation will probably get worse. It's completely useless if you aren't looking at it with inflation adjustment. Which means, you need to take that 9% and use a realistic number after inflation, like 3-5%.

[@levigoldson]

What I'm trying to say is, the longer the period of time you have the more he is wrong about the "power of compounding". That 1 million dollars is meaningless in the future and will not be enough to buy even 1/20th of a house. So why even look at $35 a month savings? No, it's not meaningful. You need to be at that $1500-$5000 range if you want to make headway before it isn't worth anything.

[@davidfolts5893]

A twelve-year bull market has helped many become members of the Two-Comma Club.

[@evelynmurphy9102]

“Two comma club”…. Love it!

[@peabo4030]

can i download this spreadsheet?

[@yuruannyhilario3552]

Mr. Rob hoping all is well. Can you make a video on the difference between cash account 5% yield M1 finance vs a low cost index fund?

[@eIonmusk542]

When are we counting from and are we talking net worth? I came to the US at 9. If counting from when I started working after graduation then 21 years. If just retirement savings + cash then 27. House prices went crazy for a minute.

[@surfsidegunny4734]

Good video! Can you do one on DCA down from a million? Is it better to do it monthly , yearly. Like to hear your ideas

[@Miami_Chris]

Ah yes the 9% return no one will see after inflation and taxes you pay on interest income

[@ZCAR355]

Most people don’t want to become a millionaire, they want to spend a million dollars.

[@Steve_SEC]

The problem with dividend ETFs closer to retirement is that they will drop as much as VTI without the upside. Instead, I dropped my VTI to 60% and bought VMFXX as a bulwark to market drops. I would love to hear your thoughts on what did not decrease in 2008 and 2020 as stable investments for my 40%, especially as interest rates decrease

[@Steve_SEC]

@Rob-lnvest how?

[@Steve_SEC]

@Rob-lnvest I don’t know what this means, but I do appreciate your effort to contact me

[@Steve_SEC]

@Rob-lnvest I don’t know what this means but I do appreciate your effort to contact me

[@bryonsview]

The issue with this is consistency. People get laid off from work, get fired, have health issues during those 30 years and you’ll have 8months here …1 year here. Unexpected hospital bills and need to turn off your 401k contributions. Not as simple as this..

[@grantleavy9845]

FYI, these calculations assume monthly compounding

[@epbrown01]

A lot of this is mindset - are you “saving for retirement someday” or “trying to reach $1M?” The former is slow, easy and safe. The latter takes about 12 years on average.

[@mcruz2187]

Thanks for sharing. I didn’t even know that we, parents, could set up any type of retirement plan for the little ones. I only found a “early start savings” account for my LO that is giving only 0.01%, which is pretty much nothing. I set it up anyway to teach how to start savings early. Could you please suggest an account or a plan that parents could set up that could theoretically yield 8-9% return, that is not a 529 plan, for kids? Thanks

[@Freemarkets1236]

There are new rules that allow transfers from 529 to Roth. Worth looking into.

[@DNaupari]

10 years

[@Devillionaire]

I started my newborn daughter off with $12k a year (using mostly tax-advantaged accounts) inside S&P 500 and total stock market index funds. Even ignoring family gifts and other incidentals that end up inside that account over time, taking just the base $12k a year at an avg. 8% annual return, this puts her above $28mil by age 65. If it skewers worse over the next half-decade to a 6% average annual return, that's still above $10mil. I'm doing this for my next kid also, and I strongly suggest that anyone capable of doing this with any amount, $1000 a year, $5000 a year, whatever, do this for their kids ASAP. Don't start when they're 18, start when they're born. That effect of that extra 18 years of compound interest is insane. Of course you have to teach your kids how to really handle money as they grow up also, and how to save their own $12k a year to continue contributing, or else they can easily flush it all down the drain. But it's a lot easier to teach them once you've already got the ball rolling.

[@Freemarkets1236]

This is what Ive just started. Not that amount as I can’t afford that amount up front. I’m a little behind as the kids are 1 and 4 but today’s the second best time to invest. What tax advantage accounts are you using? I’ve started both in 529 with the intent to transfer to Roth when they start working. Thinking of setting up a separate 529 fund for their college as well.

[@mark5846]

I did it in 26 years

[@erickarnell]

I'm on track to do it in 26 years. But since that's still in the future, it'll be less impressive by then.

[@tialemon26]

Me too give or take a year

[@elbala777]

@@aaa4181 Everyone is a genius in a bull market.

[@Toomanydays]

@@aaa4181 Let me guess, you have a guru who uses their middle name on tik tok to advise you.

[@dantheman6607]

I did it in 21 years

[@cameronmurdock7760]

What are the best investments to see a 9% return yearly?

[@innacohen3199]

Can you please share the worksheet?

[@evelynmurphy9102]

Great video Rob! So simple but so powerful. I posted it on FB. My dad drilled saving into our heads when we were young. Took us to the bank to open savings accounts when I was in 5th grade. I can’t think of one friend whose parents also offered such great advice.

[@raleedy]

Latte money.

[@caparn100]

Inflation also compounds over time. If the inflation rate is 3% per year, $1 million today would only be worth approximately $412,000 in 30 years. Therefore, it's important to consider returns above inflation when investing in a pension. Expecting returns of 9% above inflation is likely unrealistic; a more reasonable expectation is around 3% above inflation.

[@LearningSFR]

How to get 9% yearly return consistently?

[@ohoffman10]

Is the spreadsheet he used shared? Would be nice to have it.

[@noreenn6976]

I don't see that Rob shared the spreadsheet.

[@whatsup3270]

you just need the formula which is: equal future value ( interest rate, time, deposit). He used cell references to add the values

[@Steve_SEC]

I am unsure how to do this

[@aaammm1033]

It took 16 years.

[@daninvests2263]

Took me 10 years. But I have aggressive allocations.

[@Koosiman]

I was that guy saying "inflation, inflation.....inflation "😂😅

[@last9up]

So basically, it's nice to have rich or financially savvy parents that save for you from birth. Got it. Joking aside. Thank you for these videos. You get into the math and what ifs. It has really helped me plan for retirement.

[@JM.5387]

Financially savvy is more important than rich. My 16 year old is working as a lifeguard and just started investing in a Vanguard Roth IRA. True, if we were poor, we would need his income to make ends meet. Thankfully, he's able to save a large portion of his income and take advantage of this time when his expenses are low. This isn't attainable for everyone, but it is for many.

[@Lolatyou332]

My parents were hardly rich and didn't really give me anything other than a place to live through college and a cheap 01' camry that I repaired myself. Really just having access to the information is all that matters as well as having discipline. Any wealthy parent who is wealthy because of their own actions will want their children to feel the same struggle otherwise you're working your whole life just so your children can be unhappy, ungrateful, and waste the money you amassed and could of spent on things you enjoyed personally.

[@dancooper6002]

@@jnalley Career choice matters more, she can scrimp and save as much as she wants, but in 10 years the classmates who went and got a 4 year degree in STEM and went into the financial sector will have significantly more saved and won't be changing diapers.

[@byttlejuice145]

Those return rates are very unrealistic. Where will u get a 9 percent return?

[@realalien1]

Where do you make 9%?

[@bribradt3450]

9 percent is right around the historical average of the sp 500. VTI or total us market is up 17 percent so far this year alone.

[@JM.5387]

Average stock market return over the last century has been 10%. Subtracting 2% for inflation, 8% is a good conservative estimate.

[@upperman17]

VOO which just the S&P has averaged 12.82% over the last 10 years. QQQ and VGTO over 18%. Even SCHD is at 10.84%.

[@whatsup3270]

The S&P 500's real return is 4.5% the rest is compounded inflation.

[@LarryWebb-gv8dz]

Let say you started saving around 20 years old , you would want the money by age 55 because waiting until 65 would mean you'd likely be dead by the time you cashed it out , If you have kids they ain't going to need the money because it's good for them to work for there own money. Cashing out at 55 would give you at least 10 years to spend it. So any thing over 35 years of savings would be pointless unless you had a kid start saving young . A alternative to saving would be spend all the money on tools and business equipment to make more money and convert all money into assets that you could sell or trade for money if you ever needed more money to buy something. Just a thought

[@tombkk1322]

What if you live to 85?

[@LarryWebb-gv8dz]

@@tombkk1322 I plan to make money or get resources on demand by using my knowledge plus I'd have wealth that was generated by the business that I spent all my would be retirement money on. ,, I believe knowledge is the best store of wealth because it can't be taken from you unless you die at which point you don't need the knowledge no more. I think it's important to plan how your going to use your knowledge in your retirement years , just like you recommended starting early saving money I think we should start early thinking of ways to use our knowledge to trade for resources in our older years. We probably will always have to change plans and make adjustments as technology changes, for example always take note of new technologies and think about how to incorporate the new technologies into our future plan.

[@comrade_pasta]

Can you share the link to this spreadsheet? I think it would be a great resource to share and remind myself to stay the course.

[@Freemarkets1236]

You can rebuild it or just google how to do this. The first 3 columns are just variables that you can manually type in. The last column you can see the formula in the video when he clicks on the cell. Look in the top of the screen.

[@Freemarkets1236]

Time stamp 3:15.

[@mannixfleming7838]

Thank Rob, love yr vids.👏👏 I’m playing catchup. I wish someone sat me down years ago and told me to invest in index funds. I’m heading for going all in on the S&P 500. I also want to have some exposure to the global markets. Would this be the best advice for the novice? Cheers.🤝

[@bribradt3450]

VTI or VOO are good options when you are first starting out. Just try and learn as much as you can right now and then diversify more later

[@mannixfleming7838]

I am uk based so I want Vanguard’s optimum index S&P500. (VUAG).

[@nicholasmartinez6043]

It took me about 14 years

[@mutantryeff]

It depends on how fast they devalue the dollar. A millionaire in 1913 would be like having $100M today. So, if you had $10K in 1913, it would be like having $1M today. You'd be better off just buying scarce commodities that are going to keep getting consumed.

[@mutantryeff]

@@jnalley I didn't know that 1913 was 196 years ago.

[@Yette]

'Scarce Commodities' won't find that on any ticker

[@whatsup3270]

$31,734,848 in 2024 give or take

[@dancooper6002]

@@jnalley Hmm, something fishy about those numbers. Gold in 1913 was fixed at 20.66 dollars an ounce, so 10k in gold then should be $1M today.

[@GuruRangerAlpha9er]

We did it in 19. But as DINKS for 4 years, it was front loaded.

[@JM.5387]

Everyone should try to front load their savings. I saved half of my income in my pre-kid years, and it really helped. I did this even though I was a school teacher making a small income.

[@fendermon]

Use auto deductions from your paycheck. It is human nature to spend every dime.

[@hullbruce]

I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. I invest in the market, but never put all my money in market.

[@AgileSnowWeasel]

It is always sensible to be pessimistic with your returns figures when working out what to pay in to hit a target (in today's money). Sure, the S+P500 has returned around 10 to 11 percent each year over a very long period, but inflation and fees really cuts that back, even 8% is too high, in my opinion. 8% would be my 'hope' rate, 7% my 'will be happy rate', 6% my expected rate. There's also a benefit to having a 'oh it all went wrong' plan. You got 4%, not 8% - "the good times had to come to an end." or "mahoosive market crash at inopportune time leading to sequence of returns risk being realised". So now you have say $400k, not $1m. But you have your house, and the kids moved out, and really do you need to be close to work in retirement? Downsize and relocate to a cheaper area - that can raise hundreds of thousands.

[@TaylorOpee]

You are not going to find a 9% return on $35 due to minimums. You’d need to raise a minimum amount to invest. The numbers start to get ridiculous with the expected rate of return.

[@dancooper6002]

Minimum for VOO is 1 share, something like $500

[@chazruffin8271]

This isn’t true. Many brokerages like Fidelity offer fractional shares. You can start investing with as little as $1

[@TaylorOpee]

@@chazruffin8271 been the market 25 years. I’m happy with the returns and there’s no greater value than being in the market. Name 1 investment with a yearly percentage gain of 9% for only $35, repeatable. Point being, there are investment minimums. Your first $35 won’t make 9% in the first year. That is part of the calculation in the video. It’s not realistic. Once you have money to work with, it’s a different story.