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The Math That Explains Why Net Worth Goes Crazy After the First $100k


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 2 weeks ago '18        #51
niruggg 
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 Pythagoras said
So n*ggas are just learning about compounding returns?

don't be that guy
+3   

 2 weeks ago '18        #52
niruggg 
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 Lazy said
If you are a person with an on average low life expectancy or live in a third world country, long term returns aren't viable

The decision between using now vs using and possibly losing later is foremost if you live in a system that doesn't support saving/investing
Lazy makes sense

 2 weeks ago '10        #53
datguyjr 
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 pnoi89 said
S&P 500 index funds.
Is there a particular S&P 500 index fund stock I should look into or any? I'm searching on Robinhood and multiple show
+2   

 2 weeks ago '16        #54
Usd2bDrich409 
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 Loknows said
Where do you obtain the 7% interest rate?
Real estate fam

 2 weeks ago '04        #55
Jasonb619 
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I been dabbling in the stock market the last few years. Jumped into AT&T when it was around $30 since it has a nice 6+% dividend . Now it's around 37. With dividend reinvestment my original 5k investment is sitting around 8k+. Money is out there, just need to dive in. Start small until you get the hang of it.
+5   

 2 weeks ago '15        #56
gaapplewood 
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Thread
+1   

 2 weeks ago '09        #57
Zaosyn 
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I make too much money not to have $100k saved up in 5-6 years max but saving that much money is the hard part sh*t hard as hell not to go buy something and break out of them old broke habits
+3   

 2 weeks ago '05        #58
pnoi89 
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 datguyjr said
Is there a particular S&P 500 index fund stock I should look into or any? I'm searching on Robinhood and multiple show
VOO - Vanguard S&P 500. But of course, there are other choices that are equally acceptable.

Think of it this way, there are many, but all are essentially trying to "model" the same index. Unless there's a red flag indicating that it's a high expense ratio, you'll find the variety of ETF's modeling the S&P 500 to be nearly identical in terms of the index, expense ratio, etc.
+2   

 2 weeks ago '15        #59
satsuma 
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Finally some useful ish posted props bruv.
+5   

 2 weeks ago '15        #60
richmoneycash 
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Roth IRA's still legit?
+1   

 2 weeks ago '05        #61
pnoi89 
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 richmoneycash said
Roth IRA's still legit?
When was a time that they weren't?
+2   

 2 weeks ago '14        #62
cominup7 
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Real estate or bust for me right now, yall can have the long term pipe dreams

3 pages in and no one has mentioned inflation or the capital gains taxes that will be applied on whatever the fund earns, which would take a big chunk out of that figure

Plus saving 10K a yr is not realistic for majority of people, the studies vary but most say 40-60% of Americans have less than 1000 in their savings right now

I WILL say that if you already have long money it's a great way to invest, but for most of us we should be using the money we have to either invest in educating ourselves, paying off debt or starting a business
+2   

 2 weeks ago '19        #63
Luka Doncic 
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There’s a reason they say the rich get richer
+3   

 2 weeks ago '05        #64
pnoi89 
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 cominup7 said
Real estate or bust for me right now, yall can have the long term pipe dreams

3 pages in and no one has mentioned inflation or the capital gains taxes that will be applied on whatever the fund earns, which would take a big chunk out of that figure

Plus saving 10K a yr is not realistic for majority of people, the studies vary but most say 40-60% of Americans have less than 1000 in their savings right now

I WILL say that if you already have long money it's a great way to invest, but for most of us we should be using the money we have to either invest in educating ourselves, paying off debt or starting a business
It has been mentioned; same with tax-shielding accounts like IRA's to save as much on taxes as possible, and the cons of investing in a taxable account....

 pnoi89 said
Long term investing, meaning over the course of your adult years, you can gamble that investing and riding with the market, through its ups and downs, aka the S&P 500. Previous performance doesn't determine future results, but with nearly a century of data on records, the average AFTER accounting for inflation, fees and dividends reinvested to be at least 7% returns, on average:




Source:
Plus investing in real estate the traditional way, meaning buying in with the downpayment is also unfeasible to the majority...... If people are having a tough time saving $10k liquid a year, what makes you think jumping into real estate would be any more "realistic?" The stock market has a MUCH lower barrier of entry compared to real estate. Hell, even REIT's has a much lower barrier of entry as well to get into.

Besides, when has it been all or nothing? The key to a wealth really does start with saving and actually making your money work, whether it be the stock market and/or real estate.
+1   

 2 weeks ago '17        #65
AllWins 
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 set117 said
Your sarcasm lacks tact.
Go back to stormfront MAGA.

 2 weeks ago '11        #66
dan86 
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 krazyl3gz206 said
Vanguard S&P 500 ETF (VOO)

Easy money. If your investments ain't making more than this you might as well dump it in here.






Do you need a vanguard account to buy them? Or can I just buy it through my Usaa or td Ameritrade account

 2 weeks ago '07        #67
pete jr 
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 pnoi89 said
Poor man’s mentality.
Very simple and I realistic view of the world by the original poster. Senneed more balance for sure. But paying off people debt or making all education free doesn’t have the outcome that he would expect. Some wealthy people took a ton of risk and worked hard as hell to secure their wealth.

 2 weeks ago '05        #68
pnoi89 
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 dan86 said
Do you need a vanguard account to buy them? Or can I just buy it through my Usaa or td Ameritrade account
You do not need a Vanguard account to buy Vanguard ETF's.

 2 weeks ago '14        #69
cominup7 
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 pnoi89 said
It has been mentioned; same with tax-shielding accounts like IRA's to save as much on taxes as possible, and the cons of investing in a taxable account.....
I'd rock with Roth IRAs before any of the other ones, but even then that is too long term of an investment before you actually see the money

Still cant take the money you earned with the compound interest without a penalty before age 59, can only take the amount you put into it

So even tho the money would be growing, the Roth IRa is still holding my money hostage for decades

 2 weeks ago '07        #70
pete jr 
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 cominup7 said
Real estate or bust for me right now, yall can have the long term pipe dreams

3 pages in and no one has mentioned inflation or the capital gains taxes that will be applied on whatever the fund earns, which would take a big chunk out of that figure

Plus saving 10K a yr is not realistic for majority of people, the studies vary but most say 40-60% of Americans have less than 1000 in their savings right now

I WILL say that if you already have long money it's a great way to invest, but for most of us we should be using the money we have to either invest in educating ourselves, paying off debt or starting a business
Not just that but that returns on stocks are often based on annual returns. So if you have invest 100k and gain 10% year 1 you’d have $110,000. Lose 10% in year 2 and be at 99,000 and gain 10% the following year and be at $108,900. On paper you’d say you had a 10% gain but you’d have a 8.9% gain. It’s a simple example but it plays out that returns in the stock market seen always as simple as the metics say they are.

Add the fees a*sociated with trading and inflation and you find out that it’s a lot harder to become wealthy with simple stock investing. Starting a business or investing in real estate are much better options in my opinion. Business commodities and real estate are Inflation hedged and give you much more control over your investments.
+4   

 2 weeks ago '15        #71
RicanLurka 
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 Loknows said
Where do you obtain the 7% interest rate?
Real estate. You can easily get 7-12%+ in the right markets.

 2 weeks ago '16        #72
Eastcoast 
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 reelife said
True but it all depends on how youre spending.
Someone that makes even 30k a year can invest at least 5k a year..eventually they will get there. The problem is we focus on spending our money on things we dont need to impress people that dont matter.
Expensive clothes, cars, fast food, dates, parties..gotta be frugal and consistent and not care what people around you think.

Its all a mentality, its the lack of knowing that k*lls us, the younger you start the better...this are things we gotta teach the kids as their back up plan. You can work any job and become good...it just takes a strong mind, knowledge, will and consistency.
Until they get sick or injured, have to take an ambulance, and spend days in a hospital. There goes the small savings.

 2 weeks ago '12        #73
The Consultant 
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Long a*s article just to explain... *drumroll* compound interest.

You mean to tell me, the more money you have invested the more you get back :







-2   

 2 weeks ago '14        #74
cominup7 
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 pete jr said
Not just that but that returns on stocks are often based on annual returns. So if you have invest 100k and gain 10% year 1 you’d have $110,000. Lose 10% in year 2 and be at 99,000 and gain 10% the following year and be at $108,900. On paper you’d say you had a 10% gain but you’d have a 8.9% gain. It’s a simple example but it plays out that returns in the stock market seen always as simple as the metics say they are.

Add the fees a*sociated with trading and inflation and you find out that it’s a lot harder to become wealthy with simple stock investing. Starting a business or investing in real estate are much better options in my opinion. Business commodities and real estate are Inflation hedged and give you much more control over your investments.
If it really was as easy as people make it sound in here we'd all be rich already

But that's wall street's longterm investment con game, dangle that carrot in front of people.

 2 weeks ago '15        #75
Prad Bitt 
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 Luka Doncic said
There’s a reason they say the rich get richer
It damn near takes effort to lose if you get a windfall from say a trust or inheritance over a million.
+1   



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