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Here's How Long It Takes To Become A Millionaire

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How long does it take to become a millionaire? In this video, we'll do the math to see how much you need to save each month to become a millionaire.
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Timestamps
0:00 - Here's How Long It Takes To Become A Millionaire
0:38 - Spreadsheet/Returns
1:53 - Time
3:12 - Power of Compounding
5:56 - $35 a month/Inflation
6:52 - Control
7:42 - Investment Advisors
8:41 - Financial Freedom
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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Опубликовано:

16 авг 2024

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Комментарии : 295

@SteveDutton-v 13 дней назад

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money. I retired with 5 million dollars

@tmer831 13 дней назад

On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then

@DavidCovington-st2id 13 дней назад

Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?

@tmer831 13 дней назад

Sharon Ann Meny is the licensed advisor I use. Just search the name. You’d find her webpage and necessary details to work with to set up an appointment.

@DavidCovington-st2id 13 дней назад

I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

@jacnelson3423 11 дней назад

Thanks for the update, keep up the good work.< Learned a lot from my market journey, especially the importance of living within one's means. With Shea Ardolf’s guidance, my nest egg has grown to a 7-figure sum. My advice - get an analyst for better financial trade decisions and peace of mind

@jacnelson3423 11 дней назад

Shea Ardolf program is widely available online..

@lucaspaciello866 11 дней назад

Insightful comments, very much appreciated.. just came across the consulting page of Shea Ardolf after inputting her full name on the web, super impressed with what i've seen so far

@dorothyweller7736 11 дней назад

Thanks, I just googled her I'm really impressed with her credentials. . I will write her an e-mail shortly.

@chesteradams9764 11 дней назад

Reason i invest in the crypto market; to make my money work for me, to prevent inflation from eroding my savings

@normandholland8374 11 дней назад

Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience..

@theskyisnotalwaysblue 16 дней назад

I need at least $2m today to be considered 'wealthy' 20 years ago, the definition of wealth was nowhere near $2m, and in 20 years time, this amount may not be enough, however I do agree that one has to start somewhere, hence I now look to the stock market to fuel my goal.

@everceen 16 дней назад

wise observation, for many years equities and some fixed-income assets have produced yields needed to provide solid income for financial needs, the importance of mitigating risks could be why investors are turning towards advisors for guidance

@beautifulpeoplealways 16 дней назад

Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.

@OrvilleBowler-v2o 16 дней назад

bravo! mind sharing info of your invt- advisor please? tried learning few strategies to profit in this current market, but all of that flew right over my head

@beautifulpeoplealways 16 дней назад

I’ve shuffled through a few advisors in the past, but settled with ''Katherine Nance Dietz" she's the most resourceful, extremely intelligent, cautious, and shows a great deal of expertise, you can vet her info online.

@OrvilleBowler-v2o 16 дней назад

thanks for the lead. I just searched Katherine by her full name and easily spotted her profile, no sweat. I have sent her an email, hoping she gets back to me soon

@dianarabbanii2 25 дней назад

The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?

@angeladeem2988 25 дней назад

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.

@SloanJane-xp4kr 25 дней назад

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

@ClaudiaSchreiber-b1p 25 дней назад

impressive gains! how can I get your advlsor please, if you dont mind me asking? I could really use a help as of now

@Robbertskypes 24 дня назад

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

@StressLessFinancial 15 дней назад

Absolutely, investing can be both exciting and daunting. Leveraging compound interest effectively is key to growing your savings. What strategies have you considered or used to harness the power of compound interest and move closer to your $1M retirement goal?

@phase2re 28 дней назад

The best returns are made by the people who forget their passwords.

@crimsonpirate1710 22 дня назад

I like this and its very true.

@CATRINAHK12 20 дней назад

This video indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. What would be the right investment to generate more income to retire with at least $3m for long term care?

@PapiChulo-t1s 20 дней назад

We share common goal, making sure you are ready for your later years is very important. That's why passive investing works, low costs, better diversification and it enables people to overcome their behavioural bias especially if they engage professional help.

@YNZUNZA-s3p 20 дней назад

@JIANHENGLUG i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well

@YNZUNZA-s3p 20 дней назад

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

@BillyCarsley Месяц назад

The first million took forever. Before we realized we had the first million, we had the second million.

@steveno7058 21 день назад

How is that even possible. You suddenly had $1,000,000 more in your accounts then you realized 😂

@BillyCarsley 21 день назад

@steveno7058 because it's automatically deducted and we never look at it.

@dnajournal4321 16 дней назад

@@steveno7058 I bought a house. It doubled in value over 7 years from 500k to a million. Then it double again in 7 years to million. It took me 25 years to get to that first 500k house.

@Christensen554 27 дней назад

You're only as good as the decisions you make today with the money you have. This time last year I considered getting into stocks without much knowledge and decided to have a consultation with a fiduciary, and it was incredibly insightful. One year and a couple of months in, and I'm almost debt free. I truly cannot stress enough how helpful experts in this field are!

@Sithembile499 26 дней назад

How are able to make profit? It’s not just clicking for me I don't know what I'm doing wrong.

@Christensen554 26 дней назад

Jonas Herman, a certified fiduciary is the brain behind my success. I've gotten into a plethora of assets with $13k spread across stocks (options and futures) for the short term and, index funds, and ETFs, for the long term. Now with over 87k, I sit back and just reinvest at intervals while I focus on my job and family.

@Pathston 26 дней назад

To me, stocks is not worth it, just too risky and I know that's the same mindset holding me back from taking a step forward in my finances. I guess I'm just scared since I'm green to it.

@RareLovesunflower 26 дней назад

Just clocked 52 some days ago I hope it's not too late for me to start investing. How can I connect him? It's just so much going on for me right now.

@Christensen554 26 дней назад

Hermanw jonas that’s his gmail okay

@mapmanlxii1715 Месяц назад

This should be used in high schools to educate the next generation of workers!

@georgeroesser974 Месяц назад

They do (I was a high school principal and had to show my staff, as well as my students). People would rather buy expensive cars, clothes, or travel. BUT, I saved $70 per month in a 403b, and after 10 years, I had no where near the numbers demonstrated her.

@mapmanlxii1715 Месяц назад

@@georgeroesser974 me too I always threw money in 401k but getting a flat 8 9 or 10% is crazy it doesn't work that way. Rob should redo this with 5 6 or 7%

@user-cf1tm6fx4w Месяц назад

@georgeroesser974 you understand that one school doing this doesn't indicate that schools do this in general, right?

@Acvdsxbfz 26 дней назад

Our economic system is not set up to benefit workers. That’s why this information is not taught in the schools.

@matthill2957 24 дня назад

Everyone at my work believes a 401k is usless even though my company does a 6% match and profits shares 1% of its profits with us turns up to about 4500 a year per employee, I usually get 15% returns on my stock package I have chosen.

@clarkazimut1065 24 дня назад

What I've learned from this video is that by the time I was born I should have been investing in the S&P500

@Novaximus 12 дней назад

but you won't learn this until you're in your 40's...

@navymathboy Месяц назад

If you factor in say a flat 2.5% average inflation rate, a million dollars 40 years from now would have the same buying power of around 372k in todays dollars. In order to reach the equivalent of a million dollars in todays dollars but 40 years later (i.e. roughly 2.6 million), and based on your assumption of a 9% return, a savings rate around 565 dollars every month would be needed. Like x2.6 more than stated. Good point you made with the power of time.

@javiersterling7599 Месяц назад

I completely agree and the compounding curves at 6% or 6.5% (assuming 2.5% to 3% inflation vs the 9% returns proposed there) are much less powerful in the longer time horizons. It also ignores taxes on the returns whenever applicable. But in 6:07 he makes a very good point: it's reasonable to assume that you can increase your monthly savings to counter that effect. We can add that to the model.

@METVWETV 29 дней назад

Yes, increasing your contributions is key and, I'm speaking to the savers, you know when you start to see your portfolio growing you get bit by the saving bug! Budget, cut out waste and save every dollar you can!

@samrusoff 17 дней назад

I wonder if you watched until 6:04 ... Hmmmm

@robertmeyers3640 Месяц назад

It took me 40 years for 1st million and 12 years to 2 million and should take 6 more for 3 million. But hey, I’m 70. We’re not trying to build net worth anymore but with kids gone,no mortgage and natural slowing down, we don’t spend as much as we did when we were young.

@TaylorOpee 28 дней назад

@@robertmeyers3640 very true

@matthill2957 24 дня назад

At 10% return rate that 3 mill should give you 300k every years and should double every 7 years. You clearly dont have your investments growing good enough, but sounds like you can afford a nice getaway lake house or Caribbean home

@whatta7793 19 дней назад

@@matthill2957 I would imagine he is spending his investments considering he is 70. Probably has grand children to spoil, too.

@CokefishR 26 дней назад

I'm about 6 years in. It's a miserably slow grind. You think of all the enjoyment you could have if you had the money now. But you have to slowly earn it until you're outpaced by complications from sitting in an office all day, medical problems, marital problems, not having the same energy from when you were younger, etc.

@barneyfyfe8313 Месяц назад

Just run for Congress. Quicker and no restrictive laws to worry about.

@davidfarr1093 Месяц назад

Best simplified explanation I have seen on the 3 keys to investing; time, return, and fees. Sent to my kids, hopefully they watch

@JenniferPearsonJP7 Месяц назад

I love that you showed starting at 5 years of age. Beyond the educational aspect of making the child aware of it over time, that's a huge financial gift to a young adult who then only has to maintain the $35 (in theory--I understand the variables) rather than finding $200/mo.

@Lolatyou332 Месяц назад

The thing is, it's mostly irrelevant as you should be investing in your own portfolio rather than your childrens. The children will ultimately inherit anything that's left over, but for retirement it's similar to putting on an airplane oxygen mask. Put your mask on first before your children. You don't want to run out of money and then depend on your children to help you through retirement for what social security doesn't cover. Only thing worth saving for your children is for college through a 529 plan.

@METVWETV 29 дней назад

@Lolatyou332 I'm with you 💯%!! However, $35/month is nothing and when you show your kids How much money "they have" and their eyes light up.... It's a teachable moment! What I did was set up accounts within my own portfolio and simply named each of those accounts with each child's name, Ie: "Tilly's Investments" Then, when the market has performed particularly well, I show them "their" account.

@cwaters3700 Месяц назад

I wish you had shared this spreadsheet. Fantastic tool!

@DavidDLee Месяц назад

For the 20 years x $1500/month use =-FV(9%/12, 20*12, 1500, 0) (Google Sheets, Excel etc.) You're welcome.

@LarryWebb-gv8dz Месяц назад

I got a nice screen shot when the spread sheet was full but yeah it would be nice to have that spread sheet calculator

@oliverdefusco6313 Месяц назад

He's using google sheets and the formula is FV, google will get you straight to the documentation page for it

@METVWETV 29 дней назад

Investment Calculators are plentiful! You can get apps or go to websites....

@chasewrenn7109 26 дней назад

Took me 8 years, no inheritances, only now started making over 6 figure salary, just saved 60-70% of my income and invested in index funds!

@josh9231 Месяц назад

I shared this video with my brother who is showing it to his kids. You are a great educator, thanks Rob 👍

@brakmaster 24 дня назад

I started investing in 2020 at age 36. I'm closing in on 100K, maybe by the end of this year or next year. I believe within a decade I may be able to reach $1M. I'm currently investing $1300/month but I will be upping this amount every year by 5% until I reach my goal. I will ease off at the million dollar mark.

@funnlivinit Месяц назад

I'd like to see 2 more columns added. E: Rate of inflation F: Value of column D in today's dollars. Then shoot for F to be $1M. A much more valuable analysis.

@funtechu Месяц назад

It's actually much easier. If you inflation adjust the amount contributed over time and then find the present value of the final balance accounting for inflation, it's the same as just keeping everything in today's dollars and adjusting your rate of return. So for example, if you want to account for a 2% inflation rate, reduce the annual return by 2%.

@ccrider8483 Месяц назад

I realize it is difficult to predict inflation or dollar devaluation, but in these days of federal over spending it is a big factor. I recently had a solar power company wanting to lease some of my land for 20 years. I told them that I would not consider agreeing to a lease unless there would be an inflation adjustment annually. I don't think they will be back.

@kevinschultz6091 Месяц назад

Yeah, for investment, the S&P 500's annual rate of return historically has been 9 percent. Adjusted for inflation, it's 6.25 percent or so. So use THAT number, and you can calculate it more easily.

@JM.5387 Месяц назад

@funnlivinit That's a roundabout way to do it. Simpler is just to subtract the average inflation rate from the average rate of return. But he already did this: the average S&P return over the last 50 years was 11.47%. When adjusted for inflation, the 50-year average was 7.39%. (He used 8% and 9% for illustration purposes; feel free to be as conservative as you want.)

@kevinschultz6091 Месяц назад

@@JM.5387 - hm. I had heard this (that the ROI was 11%), but when I went to look it up the interwebs said that 9% was the unadjusted rate. OK, just checked again - according to Investopedia, the average is 10%, and adjusted for inflation it's 6.3%.

@janethunt4037 Месяц назад

I think about this when I see a person buying a fancy drink at a well known coffee shop wondering if they might also be putting the same amount into savings that day.

@Lolatyou332 Месяц назад

I'm 31 and even if I don't invest another dollar and only get 7% returns I'll still have 2.2$ M by 65.. I'd rather keep saving 2-3,000$/month and retire early / mid 50s with 2-3$ M assuming a 7% return, if markets still return close to 12% over that period of time and inflation is only 3% it should be closer to 3-5$ M

@Melior_Traiano 26 дней назад

Shoot for the moon. Even if you miss, you'll land among the stars.

@AgileSnowWeasel 21 день назад

My advice to any 20-something with a degree is to bullshit your way to a higher salary as quickly as you can even if you have to jump jobs frequently before you are found out. By the time you otherwise have the decent wage you have a house, kids, and responsibilities and you cannot take those same risks to get higher salaries.

@robertryan3490 Месяц назад

Great video!!! Its a game changer if the person watching is truly able to understand what is being said.

@davidpowell3347 Месяц назад

Most people I encounter have little concept or appreciation of inflation or its magnitude.

@BarnabyBarry Месяц назад

Get a CALPERS pension-100 K USD annual-retire at 55-if you live until 90-around 60 or sooner (you can work another career-work lots of OT over the years)-may qualify for SS as well

@Rocky77756 Месяц назад

I get the idea itself but I think we should always assume a lower return number maybe it’s closer to 7%.

@ZCAR355 26 дней назад

Most people don’t want to become a millionaire, they want to spend a million dollars.

@hownwen Месяц назад

We did it in 13 yrs. Me 55. Hubby 60. We are 80,000 over a million 😁

@whatsup3270 Месяц назад

That would be $3,500 month at a 10% growth rate

@geovannyl.2801 29 дней назад

Yep, the last 13 years were amazing. Congratulations!

@rick_vv7754 Месяц назад

With 3% inflation, in 25 years $1 million is equal to a present value of $477,606 with annual compounding. For investment returns, there is a difference between simple arithmetic returns and real life geometric returns.

@Snerdles 23 дня назад

If you started 60 years ago, in 1964, putting away 35 bucks a month or 420 bucks a year, when the average salary for domestic indistries is around 5500 bucks (or around 7.5% of income) then after taxes today you might have enough to buy a house. Nice!

@chucksw1 Месяц назад

Looking forward to your list of low or flat fee Advisors, I NEED ONE NOW!

@frankbell1408 Месяц назад

From $10K to $110K that's the minimum range of profit return every week I think it's not a bad one for me, now I have enough to pay bills and take care of my family

@davidfolts5893 Месяц назад

A twelve-year bull market has helped many become members of the Two-Comma Club.

@evelynmurphy9102 Месяц назад

“Two comma club”…. Love it!

@markgregotski8973 29 дней назад

Rob, would you please consider a podcast showing your actual ETF/allocation percentages over the last 10 years, so we can see how you adjust your portfolio. Obviously, you can omit the dollar figure in each allocation. This would be very much appreciated. Thank you!

@martintancer156 28 дней назад

I second this!

@carlyndolphin 26 дней назад

Mine is 100% global equities with Vanguard 63% weighted on North America. I think that America will probably outperform the rest of the world but I think owning a fund with some global equities helps soften the blow during a down turn

@glennshoemake4200 15 дней назад

AVGO has had a 5 year total return of 481%, so we can be conservative and say 50% return per year seems doable for a growing company. YTD they are up 48% not including dividends.

@glennshoemake4200 12 дней назад

@Rob-lnvest ok I just unsubscribed, great advice.

@tysone1254 27 дней назад

I opened my roth ira when I was 14 so im glad you showed the scenario when you start at age 15!

@user-lq6gy5xt9z 25 дней назад

Thanks Rob I sent this to my sons 26 & 29 they are already investing, but this reinforces what I've been preaching. db

@karenduplease Месяц назад

Great video I wished I had seen in my younger days

@levigoldson 27 дней назад

He glosses over with his "i know, inflation" but let's be clear -- you need to adjust it for inflation the longer your outlook . For example, with that 60 year example of 35 dollars a month... that 1 million dollars by retirement is only worth $100,000 in todays dollars if history repeats, and let's be real -- inflation will probably get worse. It's completely useless if you aren't looking at it with inflation adjustment. Which means, you need to take that 9% and use a realistic number after inflation, like 3-5%.

@levigoldson 27 дней назад

What I'm trying to say is, the longer the period of time you have the more he is wrong about the "power of compounding". That 1 million dollars is meaningless in the future and will not be enough to buy even 1/20th of a house. So why even look at $35 a month savings? No, it's not meaningful. You need to be at that $1500-$5000 range if you want to make headway before it isn't worth anything.

@flexiblehorse12 Месяц назад

Great work, Rob! Thank you. Just sent this to my thirteen year old niece!

@georgechiu3636 Месяц назад

Rob, I think you should mention company match in 401K plan. That can be substantial. If you work for a good company, the company's match in 401k alone can make you a millionaire in 30 years.

@Arkvin-s4w Месяц назад

Yes, if you work for a good company is the key. Majority of 410k’s are not matched anymore this day and age, plus most of 401’s have very high fees .

@OnCashFlow 22 дня назад

The beauty of financial independence is that the math is the same, your ending age doesn't have 65+ If you can save and invest a certain amount each month, then you can reasonably expect to achieve FI at practically any age.

@hartzogLovesScience Месяц назад

Back in the 1980’s, when bank accounts gave much better interest rates on savings accounts, I did the math on how $1 million can support someone for life. Little did I know, but I touched upon the 4% rule. Today’s $1 million does not provide the same security as then. But your insights and information has helped me develop a better understanding of how I need to position my finances as I approach retirement. Thank you!

@pritamrp 21 день назад

Great video, I made the same in google sheet but tried to add inflation to the mix to see what level of contribution is required. Might be an idea of next video ;)

@AgileSnowWeasel 21 день назад

It's just easiest to factor out inflation at the beginning and take it off the assumed rate of return, ditto with the fees. Just calculate everything in terms of today's values that you understand and can relate to.

@mark5846 Месяц назад

I did it in 26 years

@erickarnell Месяц назад

I'm on track to do it in 26 years. But since that's still in the future, it'll be less impressive by then.

@tialemon26 Месяц назад

Me too give or take a year

@elbala777 Месяц назад

@@aaa4181 Everyone is a genius in a bull market.

@Toomanydays Месяц назад

@@aaa4181 Let me guess, you have a guru who uses their middle name on tik tok to advise you.

@dantheman6607 Месяц назад

I did it in 21 years

@Devillionaire Месяц назад

I started my newborn daughter off with $12k a year (using mostly tax-advantaged accounts) inside S&P 500 and total stock market index funds. Even ignoring family gifts and other incidentals that end up inside that account over time, taking just the base $12k a year at an avg. 8% annual return, this puts her above $28mil by age 65. If it skewers worse over the next half-decade to a 6% average annual return, that's still above $10mil. I'm doing this for my next kid also, and I strongly suggest that anyone capable of doing this with any amount, $1000 a year, $5000 a year, whatever, do this for their kids ASAP. Don't start when they're 18, start when they're born. That effect of that extra 18 years of compound interest is insane. Of course you have to teach your kids how to really handle money as they grow up also, and how to save their own $12k a year to continue contributing, or else they can easily flush it all down the drain. But it's a lot easier to teach them once you've already got the ball rolling.

@slovelien Месяц назад

Great short Rob. Sent it to my 20 something boys(3). They also have your book.

@BiggMo Месяц назад

Rob… the power of compounding is diluted by inflation. You need one more column showing what compounding inflation does to that million

@Melior_Traiano 26 дней назад

Very true. Realistically, you can expect an inflation adjusted return of 5% on stocks.

@caparn100 Месяц назад

Inflation also compounds over time. If the inflation rate is 3% per year, $1 million today would only be worth approximately $412,000 in 30 years. Therefore, it's important to consider returns above inflation when investing in a pension. Expecting returns of 9% above inflation is likely unrealistic; a more reasonable expectation is around 3% above inflation.

@oscarsosa9503 Месяц назад

Great video! Thanks.

@richardm.441 Месяц назад

If you dca, you will do better than the market. I started a job in 2002 with no match, and I maxed the 457 account for 13 years when I lost my hob. I probably put in 200k, and now it is 1.3 million. I calculated the return, and it was 12.5% even through the lost decade.

@aaa4181 Месяц назад

Already been proven that lump sum > DCA

@70qq Месяц назад

anyone doing DCA from 2000-2009 (or near that time like you) and maxing out 401k or similar is a millionaire now , cause they were buying stuff so cheap during the worst times ... but lump sum would of probably gotten you more ... DCA isnt always the best , but its safer to avoid regret since no one knows the future ... and most people dont make $23k per month , so lump sum into 401k isnt an option anyway usually ... congrats and good job !

@richardm.441 Месяц назад

@@70qq I am trying an act 2. In my current job I have a generous match so I will probably put in 23 k this year and get 10k from my company in addition to my contribution per year. This 401k is 100%us equity index as well. It currently has 243k. Once this one hits 7 figures , I think I will retire. Hahaha. I hope it can be accomplished in 7 years.

@whatsup3270 Месяц назад

$100,000 invested (or a balance of) at the low (2009) would be worth $400,000 today. A typical earner would have added about $160,000 in contributions and growth since then so $560,000 is more accurate. People tend to really miss these estimates.

@richardm.441 Месяц назад

@@whatsup3270 No, my number of 1.3 million is accurate, because it is what I see. I do not see how you arrived at your numbers though.. The low in 2009 on the S &P 500 was 666. If we use a round number of 700 as the low instead, we clearly see just on capital appreciation, it would be 8X on price since the S&P 500 now stands at 5600 now. That number does not even include dividends paid over the past 15 years which would have made the return more than 8x without even putting in any new investments.

@alcw625 Месяц назад

thanks rob, sent it to all my young adult kids so show the power of compounding over their lifetime

@DavidDLee Месяц назад

Soooo many people don't understand this and say to themselves "I'll start saving later".

@Lolatyou332 Месяц назад

I have friends who have said worse. "I don't want to wait until I'm old to be able to spend money". They don't realize basically every 100k you save is essentially on average an extra 10k/year you could spend each year even if you don't want to wait until you turn 60+.

@eldersprig Месяц назад

nah, use a time machine and save earlier

@dancooper6002 Месяц назад

@@Lolatyou332 They have a point, not everyone lives to 60+ and of those that do the majority are too far past it health wise to enjoy having the money.

@mutantryeff Месяц назад

It depends on how fast they devalue the dollar. A millionaire in 1913 would be like having $100M today. So, if you had $10K in 1913, it would be like having $1M today. You'd be better off just buying scarce commodities that are going to keep getting consumed.

@mutantryeff Месяц назад

@@jnalley I didn't know that 1913 was 196 years ago.

@Yette Месяц назад

'Scarce Commodities' won't find that on any ticker

@whatsup3270 Месяц назад

$31,734,848 in 2024 give or take

@dancooper6002 Месяц назад

@@jnalley Hmm, something fishy about those numbers. Gold in 1913 was fixed at 20.66 dollars an ounce, so 10k in gold then should be $1M today.

@joekuul8769 Месяц назад

ROM Spaceknight #1 in the background...awesome! I still have mine, bought off the rack when I was a kid. As for a million bucks, I'm not there yet, primarily because I spend too much money on books (not comic books anymore, though I did buy them until I was around age 30). If I'd only bought my very favorite books and used the library, investing the unspent money, I'd have many more millions by now. Still, I'll be there, net worth wise, in a few years, and liquid wise, before full retirement age, if historical returns are anything to go by.

@chasingpowder200 8 дней назад

The content that will likely have the most impact on someone's life is free and from someone who has comparatively very few subscribers.

@atruewhiteknight3044 23 дня назад

great video mate

@davidpowell3347 Месяц назад

I have a suspicion that real returns could be (annual) 2% after inflation and tax drag. Even when using "tax preferred". Using a "balanced" mix of funds and bonds/cash. Or a single "balanced" fund or fund of funds.

@TripSoul10 25 дней назад

Like to see a similar video involving being a multimillionaire or how much & how long to hit $2 million. Many of us in future feel that is the number we need for comfortable retirement.

@Omar-et7sb Месяц назад

I am always a pessimist (aren't all Bogleheads?) so, I run my own calculations with a 6 or 7% return (even though I am all-equities on my portfolio). While not perfect, I like to run exercises like these. I feel they keep me motivated!

@pattyk8594 Месяц назад

Excellent video thank you!

@Miami_Chris 22 дня назад

Ah yes the 9% return no one will see after inflation and taxes you pay on interest income

@bryonsview 24 дня назад

The issue with this is consistency. People get laid off from work, get fired, have health issues during those 30 years and you’ll have 8months here …1 year here. Unexpected hospital bills and need to turn off your 401k contributions. Not as simple as this..

@last9up Месяц назад

So basically, it's nice to have rich or financially savvy parents that save for you from birth. Got it. Joking aside. Thank you for these videos. You get into the math and what ifs. It has really helped me plan for retirement.

@JM.5387 Месяц назад

Financially savvy is more important than rich. My 16 year old is working as a lifeguard and just started investing in a Vanguard Roth IRA. True, if we were poor, we would need his income to make ends meet. Thankfully, he's able to save a large portion of his income and take advantage of this time when his expenses are low. This isn't attainable for everyone, but it is for many.

@Lolatyou332 Месяц назад

My parents were hardly rich and didn't really give me anything other than a place to live through college and a cheap 01' camry that I repaired myself. Really just having access to the information is all that matters as well as having discipline. Any wealthy parent who is wealthy because of their own actions will want their children to feel the same struggle otherwise you're working your whole life just so your children can be unhappy, ungrateful, and waste the money you amassed and could of spent on things you enjoyed personally.

@dancooper6002 Месяц назад

@@jnalley Career choice matters more, she can scrimp and save as much as she wants, but in 10 years the classmates who went and got a 4 year degree in STEM and went into the financial sector will have significantly more saved and won't be changing diapers.

@Steve_SEC 15 дней назад

The problem with dividend ETFs closer to retirement is that they will drop as much as VTI without the upside. Instead, I dropped my VTI to 60% and bought VMFXX as a bulwark to market drops. I would love to hear your thoughts on what did not decrease in 2008 and 2020 as stable investments for my 40%, especially as interest rates decrease

@Steve_SEC 12 дней назад

@Rob-lnvest how?

@Steve_SEC 12 дней назад

@Rob-lnvest I don’t know what this means, but I do appreciate your effort to contact me

@Steve_SEC 12 дней назад

@Rob-lnvest I don’t know what this means but I do appreciate your effort to contact me

@epbrown01 Месяц назад

A lot of this is mindset - are you “saving for retirement someday” or “trying to reach $1M?” The former is slow, easy and safe. The latter takes about 12 years on average.

@yuruannyhilario3552 Месяц назад

Mr. Rob hoping all is well. Can you make a video on the difference between cash account 5% yield M1 finance vs a low cost index fund?

@charletfoster8917 20 дней назад

👍🏿graph that needs to be seen by all

@evelynmurphy9102 Месяц назад

Great video Rob! So simple but so powerful. I posted it on FB. My dad drilled saving into our heads when we were young. Took us to the bank to open savings accounts when I was in 5th grade. I can’t think of one friend whose parents also offered such great advice.

@nicholasmartinez6043 Месяц назад

It took me about 14 years

@sethdickfield2949 Месяц назад

Do I see The Power Broker over on your bookshelf Rob? Respect if so. Great book.

@thethinkingstone9248 26 дней назад

On track to do it in 10 years……O-H-I-O! Subscribed.

@surfsidegunny4734 Месяц назад

Good video! Can you do one on DCA down from a million? Is it better to do it monthly , yearly. Like to hear your ideas

@kobusswanepoel523 23 дня назад

I was that guy saying "inflation, inflation.....inflation "😂😅

@thru_and_thru 20 дней назад

The way things are going I feel like a million bucks at 65 will feel like 100k today.

@METVWETV 17 дней назад

I do tire of explaining this to the naysayers so I'll just agree with you and move on.... Good Luck Friend!

@hullbruce 25 дней назад

I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. I invest in the market, but never put all my money in market.

@comrade_pasta Месяц назад

Can you share the link to this spreadsheet? I think it would be a great resource to share and remind myself to stay the course.

@byttlejuice145 23 дня назад

Those return rates are very unrealistic. Where will u get a 9 percent return?

@DNaupari Месяц назад

10 years

@grantleavy9845 29 дней назад

FYI, these calculations assume monthly compounding

@abdulrahm4457 Месяц назад

Perfect

@michaelevans5328 Месяц назад

A good lesson but should use about 3% or 4% return to account for inflation.

@JM.5387 Месяц назад

Average yearly return of the S&P 500 over the last 50 years was 11.47%, assuming dividends are reinvested. When adjusted for inflation, the 50-year average is 7.39%.

@Lolatyou332 Месяц назад

@@JM.5387 Yeah I've always just basically done 7% when using any compound calculators.

@michaelevans5328 Месяц назад

@@JM.5387 In Four Pillars of Investing, Bill Bernstein writes: “You can roughly estimate the long-term return of the stock market by adding its long-term per-share earnings growth, which is probably no higher than 2% after inflation, to its dividend yield, which is currently about 1.7%, for a total of 3.7%.”

@cameronmurdock7760 26 дней назад

What are the best investments to see a 9% return yearly?

@eIonmusk542 Месяц назад

When are we counting from and are we talking net worth? I came to the US at 9. If counting from when I started working after graduation then 21 years. If just retirement savings + cash then 27. House prices went crazy for a minute.

@Italo008 27 дней назад

Hello, Rob, I can't find I video that you tell us what your favorite retirement spending rule. Can you tell us?

@richardgordon 13 дней назад

I wish I watched this video when I was 20 years old!

@mcruz2187 Месяц назад

Thanks for sharing. I didn’t even know that we, parents, could set up any type of retirement plan for the little ones. I only found a “early start savings” account for my LO that is giving only 0.01%, which is pretty much nothing. I set it up anyway to teach how to start savings early. Could you please suggest an account or a plan that parents could set up that could theoretically yield 8-9% return, that is not a 529 plan, for kids? Thanks

@mannixfleming7838 Месяц назад

Thank Rob, love yr vids.👏👏 I’m playing catchup. I wish someone sat me down years ago and told me to invest in index funds. I’m heading for going all in on the S&P 500. I also want to have some exposure to the global markets. Would this be the best advice for the novice? Cheers.🤝

@bribradt3450 Месяц назад

VTI or VOO are good options when you are first starting out. Just try and learn as much as you can right now and then diversify more later

@mannixfleming7838 Месяц назад

I am uk based so I want Vanguard’s optimum index S&P500. (VUAG).

@daninvests2263 Месяц назад

Took me 10 years. But I have aggressive allocations.

@aaammm1033 26 дней назад

It took 16 years.

@AgileSnowWeasel 21 день назад

It is always sensible to be pessimistic with your returns figures when working out what to pay in to hit a target (in today's money). Sure, the S+P500 has returned around 10 to 11 percent each year over a very long period, but inflation and fees really cuts that back, even 8% is too high, in my opinion. 8% would be my 'hope' rate, 7% my 'will be happy rate', 6% my expected rate. There's also a benefit to having a 'oh it all went wrong' plan. You got 4%, not 8% - "the good times had to come to an end." or "mahoosive market crash at inopportune time leading to sequence of returns risk being realised". So now you have say $400k, not $1m. But you have your house, and the kids moved out, and really do you need to be close to work in retirement? Downsize and relocate to a cheaper area - that can raise hundreds of thousands.

@mohamudmohamed9049 Месяц назад

If you get to 55 without saving anything, it’s crazy but you will be just fine unless you live to 90.

@LearningSFR Месяц назад

How to get 9% yearly return consistently?

@therewolf000 22 дня назад

9% returns? What at the casino. Totally unrealistic for the average person.

@peabo4030 17 дней назад

can i download this spreadsheet?

@TaylorOpee Месяц назад

You are not going to find a 9% return on $35 due to minimums. You’d need to raise a minimum amount to invest. The numbers start to get ridiculous with the expected rate of return.

@dancooper6002 Месяц назад

Minimum for VOO is 1 share, something like $500

@chazruffin8271 Месяц назад

This isn’t true. Many brokerages like Fidelity offer fractional shares. You can start investing with as little as $1

@TaylorOpee Месяц назад

@@chazruffin8271 been the market 25 years. I’m happy with the returns and there’s no greater value than being in the market. Name 1 investment with a yearly percentage gain of 9% for only $35, repeatable. Point being, there are investment minimums. Your first $35 won’t make 9% in the first year. That is part of the calculation in the video. It’s not realistic. Once you have money to work with, it’s a different story.

@deuceaces8114 28 дней назад

Is this 9% a month or yearly compounded?

@williamdavies1192 Месяц назад

Don't worry, the amount of money our govt is about to print will make us all millionaires!

@theYoutubeHandle Месяц назад

but if you assume return is a little lower at 10, and inflation is a little higher at 3, then your real return would be 7%. And 10% is optimistic, could be lower at 8, you never know.

@LarryWebb-gv8dz Месяц назад

Let say you started saving around 20 years old , you would want the money by age 55 because waiting until 65 would mean you'd likely be dead by the time you cashed it out , If you have kids they ain't going to need the money because it's good for them to work for there own money. Cashing out at 55 would give you at least 10 years to spend it. So any thing over 35 years of savings would be pointless unless you had a kid start saving young . A alternative to saving would be spend all the money on tools and business equipment to make more money and convert all money into assets that you could sell or trade for money if you ever needed more money to buy something. Just a thought

@tombkk1322 Месяц назад

What if you live to 85?

@LarryWebb-gv8dz Месяц назад

@@tombkk1322 I plan to make money or get resources on demand by using my knowledge plus I'd have wealth that was generated by the business that I spent all my would be retirement money on. ,, I believe knowledge is the best store of wealth because it can't be taken from you unless you die at which point you don't need the knowledge no more. I think it's important to plan how your going to use your knowledge in your retirement years , just like you recommended starting early saving money I think we should start early thinking of ways to use our knowledge to trade for resources in our older years. We probably will always have to change plans and make adjustments as technology changes, for example always take note of new technologies and think about how to incorporate the new technologies into our future plan.