Why Your Net Worth EXPLODES after $100,000
HTML-код
- Опубликовано: 9 июн 2024
- Taking a few steps, our goal is to get to $100,000 in our investment portfolio. Why? Well, According to Charlie Munger, this is where your portfolio will EXPLODE and go to the moon. In this video, let's put the math behind that and look at the years to $100, $200, $300K and more.
STUFF I RECOMMEND!*
Personal Finance
🤑 Webull App - get FREE stocks when you get started to your $100,000 climb!! (limited time offer) ► averagetoamazing.com/go/webull/
📊 The Ultimate Transaction Register - track your budget the real way ► averagetoamazing.com/download...
💰 Seeking Alpha - get the best research tools to stay ahead in your stock and ETF research. Receive an awesome discount off on a Premium Membership ► averagetoamazing.com/go/seeki...
💰 Track Your Dividends ► averagetoamazing.com/go/divid...
💳 Apply for an American Express Card with this link. We can both get rewarded if you're approved ► averagetoamazing.com/go/amex/
Saving Money & Grabbing Deals
💰 Get Legitimate Cash Back at Gas Stations, Restaurants, and More with Upside App (app is free to use!!) ► sweetlifesuccess.com/go/upside
📱Get a Discount on Mint Mobile and Pay Less for your Cell Phone Bill (I Save $2,000 a year!!) ► averagetoamazing.com/go/mintm...
#financialeducation #financialindependence #firemovement
Chapters of Today's Video:
0:00 - Intro
0:31 - The Math Behind $100,000
1:00 - Reaching Your First $100,000
1:15 - The Power of Compound Interest
2:17 - Investment Strategies
2:35 - Compound Interest Explained
3:12 - Managing Lifestyle Inflation
4:08 - Personal Finance Tips
5:20 - Outro
📈 In this video, we dive deep into the wisdom of Charlie Munger, who famously stated that reaching your first $100,000 in investments is a game-changer.
🔍 We'll break down the numbers and explain why this milestone is so crucial. By investing $835 a month, which adds up to $10,000 a year, and considering a modest 7% return, you can see your portfolio grow exponentially. Here’s a sneak peek:
⏳ Your first $100,000 takes approximately 7.84 years.
🚀 The next $100,000 takes only 5.1 years.
⚡ The third $100,000 takes just 3.78 years.
🔥 And it keeps accelerating from there!
📚 We'll also discuss the power of compound interest, likening it to a snowball that grows larger as it rolls down a hill. The more you invest, the faster your returns multiply, leading to rapid growth in your portfolio.
💡 But how do you start? We'll share practical tips on managing lifestyle inflation, making smart investment choices, and cutting unnecessary expenses. You'll hear personal stories, including a real-life example of trading a luxury car for a more economical one to funnel more money into investments.
🔗 Check out JL Collins' book, "The Simple Path to Wealth," for more insights into effective investing strategies. amzn.to/3QH1GPi
🌟 Join us on this journey to financial independence. Let's start building that $100,000 snowball together and watch it grow faster and faster.
📢 If this video inspired you, share it with others, and don't forget to subscribe for more financial wisdom. Ready to say "FU" to financial constraints? Check out our next video for more tips on achieving FU money. See you there! ► • FU Money - The Money F...
*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Watch this video on "FU" Money Next: ruclips.net/video/Y93CXTUKb60/видео.html
He said this in 1990'ies, corrected for inflation this is now 200k. So, the new number is 200k! Not 100k.
Great point, with inflation adjusted info, this would be around $200k. But for those starting out, maybe $835/month for now, and then you can scale up to $1600 a month or more (which can be a lot considering budget and the pace of income vs inflation right now).
@BobSharpe it's definitely a lot, but I think it would be good for perspective and the mental side of how difficult it is. Because 100k back then is just as hard as 200k is now, so that's why I commented.
I started a 401k in 2018 and only put in 4% on a biweekly paycheck. As I got more saved I increased my savings overtime. Today I put in 16% and get a 8% match and have 85k. It isn’t much but on the right track for the snowball effect to take over
Thanks Big Bob
Thank you Bob, this was very motivating.
You are very welcome!
Thanks Bob
Thanks for the vid
We missed your videos
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Dream!
New sub and new to etf's. Is there a brokerage app you recommend?
Robinhood
Ya Robin Hood is definitely the best
Public
Use Schwab or etrade, don't use these new garbage apps marketed to millennials
Robinhood works pretty good
I am 25 and have a 403b and a 457 which I put 8% into each(I make around 75k) I also do 500 a month into voo do you think this is setting me up for success?
No it does not, it is a recipe for a failure
It’s a great start …
$835 a month i wish. I work fulltime take home pay is $1800 a month its taken me 20 years to get to $100,000
Get skills that pay better or you wanna earn 1800$ for the next 20 years?
7%?? Isn't the historical average for the sp500 about 10-12%?
You’re 100% correct - the 7% factors in the inflation to show purchasing power. (10% avg growth - 3% avg inflation = 7% purchasing power)
This is great, I’ve become a little frugal with my money for sure. Idk what the future will bring and not to be a negative Nancy, however I’ve come to realize, any money put to investing is better than none at all cuz I do invest what I can, but I’ll probably be dead before I can comfortably retire lol. That’s the unfortunate reality with most ppl right now. Even with cutting back a lot these couple years it just doesn’t seem like even hitting that first 100k will even in the first 15 years even. That’s the unfortunate life environment most ppl are dealing with in my generation.
This is great if you can save that but me and my partners income only 30 thousand between us and bills 24 thousand we couldn't possibly do that 😢
Unfortunately, this is aimed to people that has or "earn" good amount of income 😐
Taxes and having a family, no where he add those factors....
What this video doesn't tell you is... S&P 500 average returns are higher than 7%. It's actually closer to 10%... However, that doesn't consider inflation. If you use 3% inflation on 10% return, you get like 6.8% inflation adjusted return, which is lower than the 7%.
Let's also not forget that 10% average return = +/- 50% over 20-30 years to get that 10%. Lol...
What you forgot is that VTI and VOO pays around 1.3% in dividends. Other ETFs like SCHD pay around 3.6% in dividends.
@@dweb2275 Good point! I googled and commented late last night. 😂 But the main point is to incorporate inflation and remember the volatility.
When you hit 100k you start the snowball effect that’s the magic number. Regardless if 100k is not that much today because inflation.but that’s the magic number that makes the snow ball effect and you gotta take in consideration that today you got investing platform you got e.t.f .you got stocks that paid good dividends you got more people investing .
Investment Guru's gonna be tellin' my kids its the first milly that kickstarts the process. Inflation is a beeeotch
Does this mean 100K into one fund or your entire portfolio? No one seems to spell that out.
As long it’s in the market I doesn’t matter
I second this question.
That depends on you.
Generally speaking, when people say broad market index, they refer to either 100% US or "global".
100% US can be broken down to simply total market by market cap, S&P 500, and dividend oriented version S&P 500 like SCHD or DGRO.
Global focuses on total market, so it captures large, mid and small caps. However, it is still at least 1/3 US, lol. Another major portion is often spent on your local country due to tax benefits and the last 1/3 on international/value/emerging market or whatever you want.
That's the general sense. You'll just need to look up what fits you and what your goals are. For like me, Canadian, we have XEQT or VEQT and that's an all in one global etf. I do not need to invest in anything but this single etf.
100k portfolio
Portfolio
Are we talking having 100k in assets(stocks, cash, 401k) or are we talking 100k in stocks?
Great question! We are talking about stocks/401k mostly. This is anything that would generate a typical index fund return of 7% (similar to the average return of the S&P 500). Cash wouldn't work since it wouldn't necessarily generate that average (even with higher interest rates, they only average 4-5% right now, which would underperform the average of 7%).
Does this mean 100K into one fund or your entire portfolio? No one seems to spell that out.
Portfolio
One fund is fine, for modeling in this example. Basically any investment that gives you the consistent average annual return of 7% over the long term. In practice, you’ll want to diversify the funds. One example given is a sp500 index fund.
Entire portfolio of invested money...but that entire portfolio could all be invested in one thing depending on the investors strategy.