I started investing in stocks in the 1980's with basically nothing. Now, I financially free at 59. My annual income throughout my years averaged 40k year. It can be done.
I recently retired comfortably at age 64 1/2. While working, I started saving for my kids college before they entered kindergarten, I financed my home with a 15 year mortgage and paid cash for my cars that I kept for 9 years. As a result, I maintained a reasonable lifestyle, and retired debt free with adequate savings. The only “jones” i kept up with was myself. Those who live for today are sacrificing tomorrow.
one of my car is now 16 years old :) Kept it for my children to drive in their high school and university years. Now is my hobby to keep it running well.
you can boil it down to basic psychology - Delayed gratification. Pay yourself first instead of short term gratification to buy that next widget or keeping up with your friends and neighbors.
Worked hard, budgeted, saved and saved and spent money very prudently and divested between the financial markets, buying farmland and buying property. Then when they had some money saved, they buy rental income or invested in additional property that brings in an ongoing income stream.
#4 It isn't people smarter than you, it is people more competent in an area than you are. Even the smartest person in the World, doesn't have the time to be the expect in literally everything. You bring in people who are experts in that area. BTW, not all experts have to be really smart.
We retired 15 years ago when I was 57. We worked, took care of the family, saved and sacrificed to get there. Today we have plenty money, can spend as we wish and help others.... For the five mentioned points, yes, yes, yes, maybe and definitely. And don't worry so much if you miss one, once in a while. Just get back on track and move forward..... You have a good message.
Everybody recommends investing in stocks, but, I am always afraid of a lost decade or two or three like in the Japanese stock market. I am still frying my brain to figure out how to invest in that kind of market...
It helped me to look at the graphs for the last 100 years for the S&P. It has done much better than the Japanese stock market. 85% of the managed mutual funds earn less than the S&P over a 10 year period. So I am very happy with the S&P 500 fund.
Well, How I see it... If you put your money under your mattress,you have a guaranteed loss equivalent to inflation. That's the point of diversifications.
One of my high school friend's dad left him a portfolio of stocks. His dad bought bank shares whenever he had spare cash during his working life. Now my friend on average gets around $150k (converted to USD) per month. He seems to learn from his father and still works as a professional, and never show extravagance in his daily life.
He has an annual income from an inherited portfolio that generates $1.8 Million dollars/year?! AND Why would he need $1.8 Million annually and NOT live extravagantly??? At a 4% withdrawal rate, that's a $45 Million Portfolio!!
@@METVWETV his dad took compounding, equity etc to an extreme level. He owns more shares in a bank than most funds. As for why isn't he living it up, well he always has plenty so there aren't much more he could do to feel any more excited. At school he was the book worm and top of the year. Beside shares, he was left with many properties, both commercial and residential.
Been putting into my 401k for many years but it's never grown the way people say it will. Still much less that expected even though I and Emp have been putting in at least 8-10K year total for 28 years and even more the last 8 yrs. Maybe it's just not invested correctly but it was 70% stocks for a long time. Not it's 2025 target since I'm close to retirement but only put it there just before pandemic. Seems most of the professional grow rates are over stated.
My experience is that the S&P will earn 8% annually, and it has averaged 10% for many of the past decades. The trick is that when it falls 35%, and it will, I have to leave it in. When I was 70% in stocks/ 30% in bonds, my experience was the same as yours. It earned much less than the 8%.
I have been doing all items from 1-5 except I am very disappointed with my financial adviser. I asked in one of your videos, how to invest and have 6.5% returns? If the financial adviser charges 1% of my total investments, what my net return would be? If you are smarter than most others, would you mind to share with people who watch your videos the expectation of net growth of a two-million portfolio after paying to the financial adviser. This is how I would choose a financial adviser. Thanks.