The Power of Investing Early

These numbers are flat out wrong. Jake would have 30k at 30 years old and after another 37 years at 7% he would have $354k not 2 million

But in what did they invest?

But Jack, diligent as he was, had to dip into his investments to replace his clapped-out car. Then, he had to rent a bigger place to accommodate his growing family which again was financed by his stash. He raided it again when he was out of work for three months.
Eventually he used it all for a deposit on a house.
Meanwhile, Blake bought a house three years earlier just when the market boomed and doubled his highly leveraged money.
Jack's wife left him and shacked up with Blake.

Most people cant afford to start investing at 21

Smart not using a woman example, we all know women don’t invest

But everyone should invest in the LORD

Brother who is out here setting aside $2k/mo for retirement?

thats why the poor will never catch up no matter what they do, the rich start with millions invested, and the poor start with debt

What if Blake was paying off student loans age 21-30?

What interest rate is that using! At 10% he's not even making 1mil by the time he's 67

This example seems to be assuming 11.5% annual returns which is very generous

I keep seeing this but what exactly do you invest it? High Yield Savings? S&P 500?

Continuously using this mythical 12% ROI is nuts. A more reasonable, plausible number is 7-8%.

Yeah so… i heard this in high school and college. Problem was, both were taking my time and paying me nothing so…

Well fuck

This made me go and do a projection on my own 401k investment. Cause why not, just to see where I’m at by the time I hit 60. $2.2M. It goes to $3.3M if I work until I hit 65, $3.9M if I work until 67.

By the end of this year I’ll have all my debt except the $135k we still owe on the house we built in 2018 that’s currently valued at around $270k-290k.

I am so lucky to be in the position I am in..

I would like to know what he invested in for that kind of return because that’s certainly not normal

How does that happen though? I would have liked an explanation as to why one person's money was worth more when it's the same dollar amount. What magically changes when you're 30?

and then at 67 they dropped dead

This is based on 12%. Historically, 10% is the actual average and more realistic. Point stands. You would never catch up. That’s crazy

Hey, I'd be highly satisfied with either of those

Ok now do one where you pay off a mortgage early vs investing that money instead of

What happened if the system crashes?

Well I'm screwed! I'm 41 years old and I only have $800 in my Roth IRA!! I'm officially in baby step 7 but I can't get my stuff together!

I’m screwed

What if you don't have anyone to invest?

The moral is that black who are white are rich

I’m 15 should I start now?

this works only when you are passively investing and holding on; but if you actively manage your portforlio and take risk adjusted return, and capitalise on opportunities when they arise, your money can still grow as fast , as long as you are willing to start, learn and have proper risk management.

Game!

You say invest bt where to to get the ROI graph you show 😂😂😂😂😅😅

This is insane lie. Hate this bs. 20k transformed into 2 million ? You are liar. Hate this swiftie fan.

This is insane lie. If you get 4 percent per year you will get under 100 k in 40 years. And that is when you put the 20k in the bank all in one.

I’m 21 and started 2 years ago. Have invested around 10k already with another 50 saved in normal savings and other things😁👍

This is probably the most depressing video I've ever watched not even lying. 😂 Thanks for that. Well im on the grind now, better late than never, i guess.

I’m so fucked

sometime i wonder if i will be able to live up to that age

What are they investing in

VTI is really what anyone needs. Best of luck to you all!

This is more than a money lesson, the concern is a life lesson!

21 with a spare $200/month after all expenses. Almost as unrealistic as the math u did

What was the percentage? What if you'd been homeless until 37yo?

Thanks for sharing this good picture. 😊

Oh yeah if you get insane returns over 37 years you'll be rich that's nice

Not hating on the content… But I don’t know where some of these YouTubers get their numbers from. I started investing in my 401(k) into the S&P 500 at 23, and realistically, I don’t expect that to even grow past $300K by retirement and that’s still a solid amount of money. But all these videos saying if you invest a tiny amount for 30 years you’ll magically have $2 million? That math just doesn’t add up. You’d need insane returns like 300% or more and unless you’re building a company, owning patents, or licensing products for millions, where are you getting those numbers from? People need to be more realistic about how compound interest actually works. Or am I missing something…

I feel blessed that I live in the world we do where information can be accessed so easily, but I feel even more blessed that I am SEEKING this information so early (I’m 18) and acting on it (maxed out my Roth IRA and plan to max it out for the rest of my life). Many of my fellow peers the same age as me will still not invest til they’re in their 30s and 40s. Hearing this information isn’t always enough to get people to act on it. Don’t be that guy.

You’re a nerd 😂

Maybe Blake didn't have money