ilmscore | How To Build Wealth In Your 20s (Realistically)

How To Build Wealth In Your 20s (Realistically)

Published: 2024-02-28
Status: Available | Analyzed

Predictions from this Video

Total: 7
Correct: 0
Incorrect: 0
Pending: 7
Unrated: 0
Prediction
Topic
Status
Investing $100/month at age 20 with an 8% return will yield $540,000 by age 65. Delaying this by 5 years (starting at age 25) will result in $361,000, a difference of $177,000.
"if you invest $100 a month starting at the age of 20 at an average of an 8% return by the time you're 65 that $100 a month will have turned into a nest egg of almost $540,000 however if instead you think but G I have my entire life ahead of me I want to go to Coachella and buy their avocado toast and you start investing that very same $10000 a month just 5 years later at the the age of 25 by the time you're 65 that amount will have only turned into $361,000 that works out to be a difference of $177,000 just by waiting an extra 5 years to invest early on"
Investing
Pending
Investing in the S&P 500 at all-time highs since 1970 has historically resulted in a higher return (9.4%) one year later compared to investing at any time (9%). This has occurred successfully 70% of the time.
"JP Morgan looked at the average returns of the S&P 500 dating all the way back to 1970 and they found that if you invested in the S&P 500 at alltime highs your investment would have been higher a year later 70% of the time with an average return of 9.4% versus the 9% on average when investing at any time"
S&P 500 Returns
Pending
Since the 1950s, all-time highs in the S&P 500 have typically been followed by more all-time highs. Investing on any given day since 1988 yielded an average return of nearly 12% a year later, while investing only on days the S&P 500 closed at an all-time high yielded nearly 15%.
"a wealth of Common Sense blog also seconds this finding that all-time Highs are usually followed by more all-time highs since the 1950s as he said if you invested in the S&P 500 in any given day since 1988 your average total return a year later would have been just shy of 12% however if you only invested on days where the S&P 500 closed at an all-time high your average total return would have been nearly 15%"
S&P 500 Returns
Pending
Since 2003, a buy-and-hold strategy in the market would have yielded an annualized return of 9.8%. Missing just the top 10 trading days would reduce this to 5.6%, and missing the top 30 trading days over 20 years would drop the return to 8%, below the rate of inflation.
"since 2003 had you just bought and held your annualized return would have been about 99.8% but had you been trying to time the market and Miss just the top 10 best trading days over that time frame your annual return would drop all the way down to 5.6% and all it takes is to miss the top 30 best trading days over 20 years and all all of a sudden your return drops to just 8% or basically below the rate of inflation"
Market Timing
Pending
Research indicates that a 20-year holding period for investments has never resulted in a negative return since 1926. Staying invested consistently is likely to be successful.
"all the research out there has shown that since 1926 a 20-year holding period has never once produced a negative result or basically if you just stay the course and do absolutely nothing like dead people you'll probably be just fine"
Long-Term Investing
Pending
Investing $100 per week in a Roth IRA with an 8% average return will result in over $2.3 million in 45 years. Investing $50 per week under the same conditions will result in $1.2 million.
"if you invest $100 a week preferably in a Roth IRA so it's taxfree at an average of an 8% return you're going to have over $2.3 million saved in 45 years even if you don't have the $100 let's just say you have $50 a week in that case you would still have 1 Point $2 million during that time frame"
Investment Returns
Pending
The speaker bought Tesla stock at an adjusted price of $18/share, saw it drop to $12/share, but held on due to belief in the product and understanding the risks, despite negative headlines and it being heavily shorted.
"Tesla stock I started buying it at an adjusted price of about $18 a share but as soon as I bought it it dropped in fact I don't think there was a single day I was in profit until it fell all the way down to like $12 a share but I didn't worry about a thing despite every headline saying it was a worthless overhyped company it was the most shorted stock on the market and it was going to zero for me I just believed in the product long term I really like driving a Tesla I invested money that I didn't need and I understood the risks"
Tesla Stock
Pending