100k is 25% of 1 Million! (The Snowball Effect)

Compound interest is one of the most amazing wonders of the world. In this video, I explain how 100k is actually 25% of the way to 1 million, due to compound interest and the snowball effect.

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I am not a Financial advisor or licensed professional. Nothing I say or produce on YouTube, or anywhere else, should be considered as advice. All content is for educational purposes only. I am not responsible for any financial losses or gains. Invest and trade at your own risk. Some of the links in the description may be affiliate links.

[DemsDaBreak]

You're 25% of the way to 1 million subscribers, congrats!

[Jasongy]

That’s why Charlie munger said that saving 100k is a must and easier

[TortoiseInvesting]

That first $100k is a b word said someone that will be dearly missed. Always look forward to your uploads, the snowball is so so powerful!

[jadecarson]

You can't go wrong with picking dividends ETFs, especially for newbies. majority tracks the yield returns about 15.7% yearly on average, now imagine when it’s well managed. It's a no-brainer to go with dividend paying ETFs.

[DrLaurelWeaver]

To be honest 30 years still sounds discouraging 😂 especially taken into consideration that 1 million isnt even a lot anymore.

[chrisniner]

100 grand used to be a heck of a base to work from... now it's a really nice pickup. The dollar got wrecked.

[FJX]

I’ve been investing for going on 6 years. I was at a point where I could only invest $100 a month. Now I’m investing closer to $800 a month and currently sit at over $27k. I’m hoping I’m on track to hit $100k but I wonder if I’m still a ways off.

[wealthelife]

True. I did a similar blog post in 2007 about how the first $1M is the hardest. Compounding works wonders if you save and invest a regular, significant % of income for a long enough period of time, and invest in a diversified growth portfolio (rather than try to pick a few 'winners' and either get lucky or not).
One of the nicest things is that at some point your investments are making a larger monthly contribution to your growing wealth than your saving a % of salary, and eventually your investment grow large enough to replace your salary income entirely (FI). If you keep working a bit longer you build up a buffer against market downturns (sequencing risk) if you retire and live off your investment income. And if you keep working and don't spend the compounding investment income it will eventually get to the stage where you can retire, draw down a comfortable income from your investment portfolio, and it will still be growing more than inflation.

[silverlining]

Hey! Congratulations on getting to 100k subscribers!! That's awesome!

[jon]

You can make it whatever percentage you want by adjusting the parameters, for example, cut the annual contribution to $1, 000 and it will take about 30 years to get to $100k and a little over 60 years to get to a million. So while the over process is slower, you'll be about halfway there when you get to $100k.

[diegoalvarado]

Congrats on 100k subs!!! I hope you keep the great content so i Can show this to my future children.

[Beansthecat]

Videos like this really are motivating!

[wildfoodietours]

Compound interest is a game changer for those on FIRE.

[corne]

One other big variable is how much you are able to invest. I’ve reached a point where I’m able to put a ton more away than when I was younger. Obviously this isn’t something you can model or plan for. But maybe you can put away $10k per year at 18. But at 28 you can afford to put 30k

[workingbird]

Great video, solid points! Only issue I take is that real inflation felt by consumers has recently been far higher than 2%, so you may have to adjust your plans a bit if this trend continues 😅

[trevor]

I’m 25, I just got to $170k. Really does start growing faster after hitting the first $100k. I hit $100k when I was about 23 and a half, after working since I was 18. Now a year and a half later, I’m almost double that

[miguelena]

question : when we buy shares from a company and this company have the expiration date already expired are we still getting the dividends ? or we got the dividends only when the expiration date still in effect ?

[BrianWhoStacks]

Thank you for this great video! Gives me a lot of motivation

[jsides]

Can you make a video on how to build this chart (sorry if you already have one)?

[TalesOfTrillions]

That first $100K might be the hardest, but knowing the snowball effect kicks in afterward is all the motivation I need.