If These 9 Charts Don't Convince You To Invest, Nothing Will

[@rayzerot]

My first $100,000 took years and years. My second $100k? Took me by surprise cause it came so quick

[@LoriLWorden]

Such inspiration!

[@theblackphantomhd]

Is that $100,000 in a retirement account? Or is it actual liquid money like in a savings or brokerage account?

[@MrMorse1111]

My first 100k took ten years, but that was 30 years ago. My 7th 100k took less than 12 months.

[@richhands5269]

My three favorite channels: Erin Talks Money, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

[@andrewdiamond2697]

I just shared this video with my 15 year-old daughter. I wish I had this information 43 years ago when I was 15. 7:45 I totally missed when my portfolio grew by more than I contributed to it. I actually noticed the first year that my portfolio growth exceeded my earned, full-time income.

[@kirklandphil]

I wish someone would have made it this simple to me back in the late 70's, You could only add 2000 to your IRA so I felt for a long time that is all I needed to do.

[@ErinTalksMoney]

Funny enough, I remember when that happened for me as well ...my mom and I went into our local bank branch (the day after it happened) - and we were talking about the power of compounding and I said to the teller, isn't it so cool that by investing you can earn just as much or more than through your day job? The teller said, that's not likely to happen....at least not until you're really old. My mom and I just looked at each other and smiled.

[@sandpiper9819]

Wise beyond her years.

[@kevinjlynne]

I am 35 now. I was taught compound growth when a junior/senior in high school. My biggest hold up was not knowing about fidelity or charles schwab. I wish they would have made it known easy to open locations for investment avenues.

[@ld5714]

Another excellent presentation and discussion Erin. I started early and have been very blessed. I was always the single wage earner, been trough multiple market crashes, ressions, etc and always stayed the course and have supported more than just my own family. I pray that the younger listeners soak up this and all of your content, take it to heart, and most important, put it into practice. I will be sharing this one with my two adult grandkids whom I've been working with and attempting to educate them on how finances work and the importance of retirement saving. Larry, Ca.

[@dachicagoan8185]

Unfortunately people in their 20s are too busy making bad choices right now lol. They won't know about this until they're in their 30s. As we speak, they're suiting up for a weekend full of debauchery lol.

[@alexanderlyon]

I love the "even if you quit" point at 6:29. That's a super motivating reason to start early. And this is an incredibly persuasive video. I love i!

[@ErinTalksMoney]

Thanks!

[@Random-ld6wg]

i had seen the power of compounding and early investing in the mid 90s. i.e the example of somebody contributing 10 yrs from 25-35 and stopping beating somebody who invested from 35-65. it really made me enthusiastic about investing and especially since i knew i had a lot of lost ground to make up for since i was already in my early 30s at the time.

[@WendallScott8414]

Erin, not to mention the obvious, but to further drive the obvious point home, you make extraordinary content. Though I am a "Boomer"and my time horizon isn't as lengthy, I gave notice to one of my siblings to pass this information onward to her three children and to her son-in-law (whom has a two-year old with her daughter ). Even though I have a daughter, though estranged, I intend to begin a program, as well. Perhaps, she will come to her senses, eventually and I can leave it for her. If not and I am involved with someone, at least I will be able to help in hopefully, a most financially and impactful way. I know, this is probably too much information. But, what you present and the manner in which it is presented, is both thoughtful and immensely appreciated. You are like the daughter, any dad would be proud to have. Thanks again and enjoy your weekend. Keep safe. 🖐️😊

[@ld5714]

Couldn't agree more Wendall. Larry, Ca.

[@hanwagu9967]

You boomers are reaching peak 65 this year with 11,200 per day reaching 65yo.

[@ld5714]

@@hanwagu9967 What is your point?

[@stom3998]

I remember the first time I saw a chart like this from one of my old bosses, and it inspired me to get serious about investing. It's weird how that works sometimes. Thanks for the video. I gave you a shoutout when George Kamel asked about people his audience wants to see him work with. I figured it couldn’t hurt. Cheers!

[@timprussell]

Middle Gen X and yeah its awesome when you see your annual gains outstripping your contributions. Even in the down years as you are working you got DCA happening and then when you have the market hitting new highs like it is right now it's glorious. Save as much as you can, as early as you can and make it as regular as you can.

[@dadventure-tales]

Great videos! Right up my alley. Also, I binge watched some of your old videos from 2020, and I must say; you are reverse aging. You did talk about taking care of your health to enjoy the wealth longer. I can see you're following your own advise. Its amazing how good diet and regular excercise can take years off your body.

[@ds.sabujsarder4234]

"The Power of Now" that shows just how important it is to start early...Which is ironic as I am just about to retire and I really hope younger people are seeing this. It truly shows how small amounts of money can compound over time to be very large amounts of money. More than enough to be lifechanging.

[@BoxOfRain]

Another great video. One of the challenges of investing - whether it is in a taxable or tax advantaged account is that many people will see a four or five figure sum in their account and it will burn a hole in their pocket. They will withdraw money from it to pay credit cards or make a house payment or finance a new car or pay down college debt or any one of dozens of "emergencies". The financial talk shows feature many, many examples. Successful investing requires a degree of self discipline and maturity.

[@michellehavre6821]

simple and clear. good job Erin.

[@ErinTalksMoney]

Thank you!

[@tressalewis7004]

Thank you for the good content, Erin. I try to watch all the videos. Keep up the good work.❤

[@rogersmith9705]

*The Power of Now!* Got it! Thanks Erin 👍

[@NormanOkada]

Great content. I am trying my best to get younger folks understanding unless they invest they may never be able to retire. I have started with my 23 and 22 year olds

[@blongshanks77]

Erin, thank you for another excellent video! You do an amazing job at simplifying finance those of us “non-experts” out here!

[@desiv1170]

My favorite of those charts was "The Power of Now" that shows just how important it is to start early... Which is ironic as I am just about to retire... ;-) It's more of a "I wish I had seen that chart when I was younger, and I really hope younger people are seeing this" kind of thing... ;-)

[@EricMoore790]

Erin makes good videos! Erin ❤

[@Allegan49010]

Great presentation on how to find financial freedom thru simple investing!

[@Insightfill]

6:00 When our oldest graduated college, we encouraged her to put as much as possible into the work 401k. She chose a Roth 401k because of the lower current tax bracket. Later, she may switch to a traditional 401k.

[@shawnbrennan7526]

The 2 Power of Now graphs have always been the most impactful for me.

[@dstevens518]

It's been fun watching our money grow and we're so grateful that we always lived below our means and saved/invested. Exciting thresholds reached include paying off our mortgage years ago (zero debt!), realizing we've only contributed about a quarter of the nest egg total reached, and seeing we'll be enjoying a significantly higher standard of living in retirement than during our working years. I chuckle everytime I see a wage slave rushing around, stressed out maintaining their ultra luxurious lifestyle. Don't they know Billy sang "Vienna waits for you"? 😊

[@zuozhen4758]

Great video! There’s no time like the present. Start now!

[@johnchen8888]

Very powerful, this should be a required watch in every high school!

[@curtiswfranks]

The chart about starting early and then stopping is what impressed and inspired me the most in this video. It makes sense from the standpoint of limits (in the Calculus sense), but seeing the actual numbers was eye-opening.

[@tothra]

Another great video from Erin. Why Erin's videos about $ are the best: Her advice makes common sense; She comes across as a "typical" person (even though we know she's not😊); Erin can take complicated subjects and make them understandable for most everyone; She goes out of her way to be positive and not make anyone feel stupid, make them feel guilty for not doing better, or yell her advice. Erin is great 👍

[@ErinTalksMoney]

Wow, thank you!

[@brucecann1591]

Another great video. I just sent it to my daughters. Thanks

[@johnurban7333]

You're spot on with this video. I'm sending it to my young friends hoping they will try doing this

[@ErinTalksMoney]

thanks for sharing!

[@dachicagoan8185]

Unfortunately, many people are so broke from life situations (having kids, health problems, new in career) or stuck from bad life choices (student debt, credit card debt). So they don't even have $50 to save per month.

[@davidbundesen5867]

Good information presented in a very easy to understand format. I just forwarded this to my granddaughter.

[@ErinTalksMoney]

Wonderful!

[@TheGayStoic]

You're a great teacher! Thank you.

[@Ethan-bu2zy]

The younger people start investing, the better! If your work offers a 401k match, take it! Even if doing so means sacrificing some quality of life now. You will be glad that you did later in life!

[@Mitchell.Holland]

Superb Content! As Winston Churchill said “Never, never, never give up”

[@robloxvids2233]

People need to frame retirement planning differently. Most people are taught (if they are lucky) to "put away 10% toward retirement." And that's it. Ramsey goes "aggressive" and says 15%. But people don't know what to do with that info. Some people who bother to put away 10% actually never even pick funds so 15 years later they go "my money didn't grow." Lol. Worse, it decreased when considering inflation. Instead of thinking in terms of defined contribution, we need to think in terms of defined benefit. How much do we need in retirement? How do we get there? The entire goal of retirement is to replace your physical body with your money. Instead of using your person to earn 80k, your money earns it for you. Simply put, if you do not build a big enough pile of money to replace your body in the wirkforce...your body still has to hear a 6:30am alarm clock every morning. You gotta send your body to work. I'm trying to replace my body with money. So far, I've only got a couple legs replaces. Still working on rest 😂

[@loakland2773]

Great video.. ThanXXX.... I just subscribed... Quality video and information.... I will share this video with friends for they young adult children...

[@ErinTalksMoney]

Welcome to the channel!

[@Azel247]

Awesome video! I especially enjoyed the snowball section. I'm at the point where the growth dwarfs my contribution, so much so that additional contributions seem almost futile. It's a liberating feeling to know that I can take my foot off the gas because my money is making more money than I am.

[@ErinTalksMoney]

Glad you enjoyed it!

[@philochristos]

This is a really good video. I think the most impactful chart is the one that shows how much more you can accumulate if you start young as oppose to starting late. At least that's the ones that grabs me the most since I have a daughter who I wish I could encourage to invest.

[@bizpo1286]

I am convinced.

[@DaveM-FFB]

The compounding snowball is both real and exciting. I remember when my earnings surpassed my contributions. But my mind was totally blown when my annual earnings surpassed my annual earned income.

[@dominiquemartin9524]

Thank you for using MEDIAN figures versus the misleading Average.

[@kimberlychin1996]

Can you talk about how investing into an index fund or ETF like FXIAX or VOO is the correct way of long term investing?

[@allieyates557]

I’m SO thankful I started investing at age 22! It helped me afford to get out of a bad marriage on my own with plenty saved separately in a Roth IRA I haven’t touched. 34 year old me is so grateful to my past self!

[@mikezerker6925]

I wish I had learned this when I was younger! I’m trying to impress this upon my nieces and friends that are just starting out.

[@billsview]

Thank you. You did a great job with this video. I've been trying to tell my daughter for a very long time to start investing. Hopefully your words will work better than mine. I forwarded her this video. 🤞🏻 Thanks again!

[@shaneomack5018]

I’ve been out of HS for 35 years and I don’t remember ever talking about money or investing. Money was almost taboo to talk about when I was kid. My parents didn’t invest in the market at all. We have a small online business and invest 10% of our sales daily into the market plus a weekly amount to our ksop at work. That daily amount is up 18% vs my ksop 11%. Crazy how that works

[@zuozhen4758]

This video needs to be watched by everyone who starts his/her job right after College!

[@lukehanson5320]

Engagement for Erin. Keep up the great work!

[@ErinTalksMoney]

Yes! Thank you!

[@lukehanson5320]

@@ErinTalksMoney Thanks for the great info and digestible content.

[@MeltingRubberZ28]

Phrase that got me into investing: earning interest on my interest.

[@JBoy340a]

This is a wonderful video. It truly shows how small amounts of money can compound over time to be very large amounts of money. More than enough to be lifechanging. I do dividend reinvesting on equities for the same reason. If you do that with high quality stocks the compounding effect is amazing.

[@brentlorrilliere6057]

please adjust all these charts for risk....Sharpe Ratio = is calculated by subtracting the risk-free rate of return from the expected return and dividing the result by the negative portfolio's standard deviation (downside deviation). The quantum of volatility depends the risk tolerance of an investor. Risk tolerance is nothing but the propensity to take on volatility for specific financial circumstances, considering their psychological, mental ease with uncertainty and the probability of incurring large short-term losses.

[@hanwagu9967]

risk is assumed in these graphs already, because it assumes you would invest in equities. If you subtract the risk-free return, you get zero, because you wouldn't be invested in equities. Actually, you would be negative because of the opportunity cost/loss in not investing.

[@gcburkett]

I have experienced the same with a rollover of a 401k in 1995 is worth more than my savings since.

[@leathers2]

Great video Erin!

[@paulr1]

I have about ten years to invest in the stockmarket, thinking about s&p500 etf . Is that long enough ?

[@hanwagu9967]

One thing you should note is that, yes, seeing these graphs over time grow is one thing, but seeing your portfolio shrink in down market is entirely another. Seeing your equity portfolio shrink by $100k the first time can be a bit traumatic, and the swings in equities will only get larger as your portfolio grows. So you really need to be able to cope with that, because the long term still wins out.

[@wolffofcinema3448]

“The Power of Now, Even If You Quit” blows my mind. I Great video Erin!

[@bbearsmama]

I really enjoy your videos!

[@seanhepner7813]

Another quote that got me to save a lot back in my 20’s was “a dollar saved, is a dollar earned”. Now, about 10-12 years later, my portfolio grows about twice as quick (in a theoretical average year) as what I put into it. This has enabled me to start spending more money guilt-free, because i don’t need to worry about it impacting my retirement goals now. 🎉

[@uncareid5557]

Too late, I was pushed out of the workforce by the Chinese bug. But after two years I found a job I love and with SS my checks are just play money. Sure it would be nice to have a million in a 401K or Roth IRA, but after paying all my bills and being generous with my charities and grandchildren I have more in the bank every month. You don't need a big portfolio, you just need to pull in more than you push out.

[@Random-ld6wg]

the best part is when the yearly increase reflects a multiple of your annual salary, not just the savings and investments you did for the year.

[@jimv77]

We match our kids Roth IRA dollar-for-dollar. My 19 year old son can't wait to max out his Roth IRA Jan 1st. My 17 year old daughter waits til December, even the following year to think about it. She treats her Roth IRA contribution as a punishment. Sigh....

[@JBoy340a]

Have your daughter watch this video.

[@bradleygraves5915]

30 years is a much more realistic timeline. It takes 10 years after schooling to get your life set and start making real income. Before that, you have youth, girls/wife/kids and basically life-building measures. Car, work, house, work, sick kid, work. Years later you can do the $15 a day trick - but hopefully you have been putting some % in your work 401k...

[@imakethesites3048]

It's more depressing for me because I didn't get serious about saving until the last year or so, despite working since I was 16. I'll have to increase my savings rate much higher than 5% to be ready for retirement.

[@ryangagnon370]

First example, is it $5 invested every trading day, of which there’s 252? Or $5 invested every calendar day? I think to get those figures you’d need to invest $7ish every trading day

[@shawnbrennan7526]

She said $35 per week. Don’t overthink it or we’ll start worrying about the added day in Leap Years. ;)

[@ErinTalksMoney]

actually I take Feb 29th off every 4 years....it's a bonus day, no work, no school, just relax and fill it doing fun things :-)

[@ryangagnon370]

@@ErinTalksMoney Perfect! For all the hard investing work & daily cost averaging we can celebrate once every 4 years and take a break on Feb 29th. Keep up the great content, the charts are powerful and should be incorporated into high school math/business classes. Boglehead’s Guide to Investing got me into saving for retirement & simulating returns and start/end dates with a retirement calculator made it all click for me

[@philipmiller7431]

The one thing to think about is that to have $1 Million 40 years from now will not buy nearly what $1 Million will buy today. Inflation, how much will you need in 40 years to buy the same things today? Still, the point here in Erin's presentation still stands. Put aside and save today and invest for the future. That's the moral of the story.

[@hanwagu9967]

you miss the point about the rate of return dected for inflation. These graphs are in today's dollars adjusted for inflation.

[@Martin-rb4np]

Friendly reminder: All this is based on aggregate data and is not necessarily applicable to your situation. "The longer you delay, the harder it is for you" This is bubble mechanics, ponzi schemes needs consistant money investments. 90% of people lose money investing because they are convinced to invest when everything is going good and returns are easily made, but then the return to mean happens and the ones who already have money pull out, leaving you as a bagholder. This video gives decent information, but if you invest like this you will be screwed out of financial gains, only filling the pockets of people who know what they're actually doing in the financial markets. See this as an entry into investing, but don't follow it blindly, seek more information before blindly expecting returns on anything. The financial crash is coming, listening to this advice will leave you financially ruined. Make your decisions based on actual knowledge, not aggregate data.

[@hanwagu9967]

facts don't lie and the facts contradict what you are saying. All these charts are assuming you are investing in the market, which means index funds or index etfs, not individual stocks.

[@fredswartley9778]

I wish I had watched these kind of videos in college. I didn't have a clue about investing back then. Time is the key to growing your wealth. I'm trying to increase the amount I invest as I get older. I'm only investing $100 per month now, but I'll try to increase that in my forties.

[@thomaschew2191]

Today is what most at my workplace call "payday". I call it "Opportunity to Save and Invest Day!"

[@ErinTalksMoney]

that's the best!

[@CalmerThanYouAre1]

Setting aside and investing just $10K for each of your kids when they're born and letting it compound for 65 years until they retire produces $6.5M of wealth for them in retirement! One $10K lump sum. No need to ever invest another dollar. Crazy how powerful compounding is, as well as saving and investing early and often.

[@TheFirstRealChewy]

It all depends and $6.5 million might be worth $10K by then. I invest in cash assets primarily to preserve the value of the investment. If it grows that's great. My play to build wealth is to invest in a business where I provide more value to the economy.

[@CalmerThanYouAre1]

@@TheFirstRealChewy good luck! So far there’s a 100% success rate of turning $10K into $6.5M by owning the S&P. Small businesses have a 70-80% failure rate over just a decade. You can get richer, faster by owning your own business for sure. But you can go broke a lot faster too! And the probability of success makes it a bad bet if wealth building is your primary goal.

[@USMC978]

Can’t wait for my son to come work with me when he’s 18. I’m going make him max out his contributions for the first few years.

[@rayzerot]

😮 He's going to be loaded by the time he retires. Good on you

[@shawnbrennan7526]

Why wait until 18? He can invest any earned income in a Roth no matter his age. ;)

[@USMC978]

@@rayzerot wonder if I can max out his Roth IRA with my money. That’s not illegal right?

[@Iamwithspirit]

You can gift him the money to fill his Roth IRA- yes!

[@USMC978]

@@Iamwithspirit awesome sauce. I just want to max out the first few years for him and give him that head start. Thanks for the info!

[@NorthN2TheEast]

Most of your videos should be tought in high School

[@dantheman6607]

Great video but to invest this amount of $$ you need a 401k and some employer’s don’t offer one. You can only invest 1/3 to 1/4 the amount in an IRA 😮

[@shawnbrennan7526]

You can invest without it being in a 401k or IRA too. Just because it isn’t tax deferred doesn’t mean it isn’t worth doing.

[@barriespencer6336]

I wished I had this Information when I was in my 30s to late now to old .we never got any financial education in my day any body in there early 20s do its a no brained

[@grigorirasputin425]

Man, that girl with her 40-50 years investing horizons makes videos for middle schoolers

[@goated4eva]

S and p 500 market cap would have to be worth $1.4 quadrillion in 50 years to continue 10% growth, doesn't seem sustainable. Or am I missing something?

[@Defy_Convention]

How about the fact that 6 companies make up almost half of the safe boring s&p? One of which has 3.5x in a year. Pain is coming.

[@rarelycares8416]

If you buy something while scrolling through social media, your problem is deeper than investment advice can fix.

[@Paul-GrnHil]

I’m a retired CFO and have used the chart whereby you start contributing for 10 years and stop and still end up with ,ore than if you waited 10 years and contributed for the rest of your career when discussing 401k contributions with my employees. It was very impactful.

[@eydat]

I wish everybody knew this!

[@helioliskfire5954]

One dangerous flaw in the premise is that the returns to an investment would be guaranteed. There are horror stories of overly eager investors, pumped and primed by the promised returns, and in the end, seeing their life savings lost to bad investments.

[@hanwagu9967]

well that is different than what is being discussed in this video.

[@danh2716]

The two metrics that I find/found most impactful is when your annual earnings from your investments make more than your annual salary from your job. The other is the reality that most likely it will take you longer to accumulate that first hundred thousand than it will to accumulate your second million.

[@smilesnluvd6526]

"Give up your $5 coffee or whatever frivolous thing you buy every day." That doesn't apply to the poor people I know. So, no, everyone isn't going to be able to find $35 per week. I understand if that's what you or people in your circle do, but it doesn't apply to everyone.

[@hanwagu9967]

define poor? Because I have literally seen homeless people begging for money outside of Starbucks and then going into Starbucks to buy an $8 frappalappalatte. I also see a lot of brand new expensive escalades parked in Section 8 housing drive ways and parking spots.

[@smilesnluvd6526]

@hanwagu9967 Your comment leaves me confused. How do you know housing is section 8? Places that accept section 8 vouchers are literally everywhere. Do you know because you're the landlord? You could report your tenant. Otherwise, these are the same tropes that get perpetuated by some people about poor people, but I've never seen happen in real life.

[@republicunited2183]

Our tax paying dollars paying for section 8, many ppl whom can work. Paying for illegals too.

[@mitchbandalan9450]

So I don't need to continue my OnlyFans page? 🤣. Kidding. I wouldnt get any views anyway nor would I want to put myself out there like that. Great content as always. I am always surprised on the average savings in retirement and how low it is. How do people live like that? I would have panic attacks daily.

[@hanwagu9967]

onlyfans page is easy money, why would you give it up?

[@mitchbandalan9450]

Its not like a lot of people want to see an aging dude eating Doritos all day... 🤣@@hanwagu9967

[@hanwagu9967]

@@mitchbandalan9450 you'd be surprised what people actually are willing to pay to see. as far as you being an old guy eating doritos...a then 44yo now 48yo guy, Bryan, gained some internet notoriety for having a $20 sub onlyfans page where he only eats and eats alot. he now charges $25 sub and he has tens of thousands of likes, which means there are lots of people paying that $25sub. Interesting, someone like Denise Richards charges $25sub, too...although she reportedly earns $2m/mo compared to the middle age guy Bryan who earns around $8k/mo. Yeah, that's $8k/mo, so I wouldn't give up the dream of eating doritos on onlyfans🤣

[@grahamcollins5416]

The bait on this video just didn't work for me. Posting because I care :)

[@sandybeach3576]

You have more fun taking your money to Vegas 😅

[@tomdriscoll7041]

👍👍

[@kevinedward4195]

I HAVE NEVER ENTERED THE STOCK MARKET.........I am retiring at 59. I have 100k with pension and ssa, no debt, and 1.3 million. I will create a fixed income stream from the 1.3 million at 5%++ AND THEN dollar cost average into the stock market to hedge inflation.