I'm nearly 60 years old and just discovering a joy of investing! I put 150k to work at once and about 100k in dividend stocks. When will my snowball start rolling? I'm sorry if it is a dumb question, but I'm an old newbie!
It's never too late to start investing! With a solid strategy and patience, your snowball will start rolling faster than you think. Keep learning and stay engaged!
I'm a big fan of investing, delaying rewards so you can use that future reward to build a bigger reward for later. But your deferred reward does NOT grow any faster after $100,000 than it does at $1,000. Sure you gain more each year in absolute dollars, but not in percent of what you hold. Reinvesting dividends makes things grow faster for sure, but again, not any more after you've accumulated a lot of money than when you only have a little. You may earn more with a big investment than a small one relative to what you earn in a job, or spend on yourself. But you don't earn more by percent. Compounding does not speed up, ever. Your dividends eventually may surpass your income, but they never increase as a percent of what you've saved. The general rule is, save 15% of your income for 40 years and you can retire on a similar income. Save more and retire earlier, or richer than you were when you had to work to pay your bills.
You’ve nailed it with this insight! It’s all about the principles of compounding and understanding how your investments work over time. Thanks for sharing your thoughts!
@ProsperityPulsePoint thanks for the recognition. I'm not really a dividend investor. I'm a value and growth investor because my take on things is that those deliver higher returns over the long haul. But I'm shifting toward dividends because I'm getting close to the time, and total holdings, when I want to start spending out of my investments. I hope and plan to not touch most of it for decades, but I'm ready to start pulling some of it soon - maybe even this coming year. Once I start drawing from the savings, I'll want to keep some of it in more stable, consistently growing investments. With luck I could spend more each year and still get richer every year than I was the year before. Now I'll have to keep working for a while to do that, but I like working, so that's no big deal. And I don't really have anything I want to spend money on, so it's not as if I'll be spending extravagantly. But depending on how the next market bust cycle goes, I could be done saving permanently and just start spending for the rest of my life.
I'm nearly 60 years old and just discovering a joy of investing! I put 150k to work at once and about 100k in dividend stocks. When will my snowball start rolling? I'm sorry if it is a dumb question, but I'm an old newbie!
It's never too late to start investing! With a solid strategy and patience, your snowball will start rolling faster than you think. Keep learning and stay engaged!
This dividend snowball i can feel now from 10k to 20 k
Awesome video. Thank you
I’m glad you enjoyed the video! Your support means a lot to me.
It's awesome to hear you're experiencing that dividend snowball effect! Keep up the great investing!
I'm a big fan of investing, delaying rewards so you can use that future reward to build a bigger reward for later.
But your deferred reward does NOT grow any faster after $100,000 than it does at $1,000. Sure you gain more each year in absolute dollars, but not in percent of what you hold.
Reinvesting dividends makes things grow faster for sure, but again, not any more after you've accumulated a lot of money than when you only have a little.
You may earn more with a big investment than a small one relative to what you earn in a job, or spend on yourself. But you don't earn more by percent. Compounding does not speed up, ever. Your dividends eventually may surpass your income, but they never increase as a percent of what you've saved.
The general rule is, save 15% of your income for 40 years and you can retire on a similar income. Save more and retire earlier, or richer than you were when you had to work to pay your bills.
You’ve nailed it with this insight! It’s all about the principles of compounding and understanding how your investments work over time. Thanks for sharing your thoughts!
@ProsperityPulsePoint thanks for the recognition.
I'm not really a dividend investor. I'm a value and growth investor because my take on things is that those deliver higher returns over the long haul. But I'm shifting toward dividends because I'm getting close to the time, and total holdings, when I want to start spending out of my investments. I hope and plan to not touch most of it for decades, but I'm ready to start pulling some of it soon - maybe even this coming year. Once I start drawing from the savings, I'll want to keep some of it in more stable, consistently growing investments. With luck I could spend more each year and still get richer every year than I was the year before. Now I'll have to keep working for a while to do that, but I like working, so that's no big deal. And I don't really have anything I want to spend money on, so it's not as if I'll be spending extravagantly. But depending on how the next market bust cycle goes, I could be done saving permanently and just start spending for the rest of my life.