ilmscore | How to Lose $5M in 5 Days (and How to Avoid It)

Predictions from this Video

Total: 4
Correct: 0
Incorrect: 1
Pending: 3
Prediction
Topic
Status
The cumulative effect of Polly and Molly's five financial decisions will result in a $5.2 million difference in their ending portfolio value by age 65.
"if you just look at these five decisions they made over these five days by the time you go from age 35 all the way out to age 65 it equates to a 5.2 million difference in ending portfolio value these five decisions had a $5 million impact"
Financial Planning
Pending
Molly's decision to rent a cheaper apartment and invest the $550 monthly savings will result in a $1 million greater portfolio value by age 65 compared to Polly's choice.
"if I can earn 9% on average over the long term that small decision of $550 can stack up pretty substantially over time yeah I mean I think it's pretty powerful we chose a case scenario where this person started at 35 that resembles America AB a lot of people don't realize that they could even how powerful their money could be until they're in their mid-30s so this this ties we could we could have amped this up even more going back to the 20s the other part I think is I want to take a moment to pause this million dooll difference that that decision was a million dooll decision"
Personal Finance / Housing
Pending
Molly's decision to fully roll over her $80,000 old 401K into an IRA and invest it at 9% will result in a $1.1 million greater portfolio value by age 65 compared to Polly cashing out part and leaving the remainder uninvested.
"when you stack up what their dollars turn into PES only only turns into $774,000 that's less than she started with at $80,000 that's how devastating that decision was but Molly on the other hand her money is now turned into almost $1.2 million so there is literally a $1.1 million difference between these two decisions"
Retirement Savings / 401K Rollover
Incorrect
Molly's active approach to her new 401K, saving 10% (increasing to 25%) and investing aggressively at 9%, will lead to a $2.7 million greater portfolio value by age 65 compared to Polly's default 3% contribution at 6% return.
"paully has still built built some money she's built $282,000 which is still more thousands of dollars which is great but when you compare that to Molly Molly has now built over $3 million that is a $2.7 million doll difference based on the decision they made in one day"
Retirement Savings / 401K Contributions
Pending