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Why didn't they tell me this when I was younger?

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#1 Stout_fan

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Posted 12 July 2021 - 07:43 PM

"To illustrate this, let's say that you had invested $10,000 in a low-cost S&P 500 index fund in 1980. Since Jan. 1, 1980, the S&P 500 index has generated a total return of approximately 7,670% as of this writing. This translates to a 12.1% annualized rate of return.

 

Assuming an expense ratio of 0.1% on your index fund (you can find even lower costs now), this means that a $10,000 investment would have turned into just over $760,000 as of Feb. 1, 2018."

 

At this date it would be 1.27 mil

 

Uh yea, they probably did, but I really wanted that kewl British sports car.

:facepalm:

 

Amish proverb:

"We grow too soon old and too late smart."


Edited by Stout_fan, 12 July 2021 - 07:46 PM.

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#2 TonyBrown

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Posted 12 July 2021 - 07:53 PM

I’m proud of my boys, both have been working a ton and both have been actively trading in the market, oldest has topped 10k in his account youngest still about 1500 so far
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#3 Stout_fan

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Posted 12 July 2021 - 07:58 PM

Awesome! How old are they?

Teach them the joys of capitalism!


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#4 TonyBrown

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Posted 12 July 2021 - 08:01 PM

20 and 16, I have taught them well to this point
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#5 Stout_fan

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Posted 12 July 2021 - 08:05 PM

20 and 16, I have taught them well to this point

Well done sir!


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#6 Patrick C.

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Posted 12 July 2021 - 09:49 PM

 actively trading in the market

 

It's good that they are learning about money, but active trading is a whole lot different than buy and hold.


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#7 Genesee Ted

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Posted 13 July 2021 - 02:41 AM

20 and 16, I have taught them well to this point

Damn right. I’m almost 40 and I don’t have much other than a small IRA.

Funny timing for this thread tho, I was just thinking about throwing some money in S&P

#8 Mando

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Posted 13 July 2021 - 03:31 AM

Damn right. I’m almost 40 and I don’t have much other than a small IRA.

Funny timing for this thread tho, I was just thinking about throwing some money in S&P

It's pretty much never a bad time if you are in it for the long haul.

Edited by Mando, 13 July 2021 - 03:31 AM.

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#9 siouxbrewer

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Posted 13 July 2021 - 05:23 AM

I’m proud of my boys, both have been working a ton and both have been actively trading in the market, oldest has topped 10k in his account youngest still about 1500 so far

10k that's like a 1/4 semester of med school right? He's got some earning to do!


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#10 KSUwildcatFAN

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Posted 13 July 2021 - 05:51 AM

I was told in my early twenties that putting x amount per month into investments from the ages of 18 to 28 (and stopping) would accumulated to more than putting x amount in per month from 28 to 65. But I didn't have any money in my twenties so it didn't really matter lol.
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#11 Stains_not_here_man

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Posted 13 July 2021 - 05:52 AM

I was told in my early twenties that putting x amount per month into investments from the ages of 18 to 28 (and stopping) would accumulated to more than putting x amount in per month from 28 to 65. But I didn't have any money in my twenties so it didn't really matter lol.


LOL... This.
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#12 TonyBrown

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Posted 13 July 2021 - 05:58 AM

It's good that they are learning about money, but active trading is a whole lot different than buy and hold.

they know buy and hold also, they’ve been taught dollar cost averaging as a basic trading technique
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#13 porter

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Posted 13 July 2021 - 06:02 AM

I was told in my early twenties that putting x amount per month into investments from the ages of 18 to 28 (and stopping) would accumulated to more than putting x amount in per month from 28 to 65. But I didn't have any money in my twenties so it didn't really matter lol.


When you have time, you need money. When you have money, you need time.

Edited by porter, 13 July 2021 - 06:04 AM.

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#14 Stout_fan

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Posted 13 July 2021 - 06:16 AM

Back then I saved up and splurged $5k on my favorite car a Triumph TR-6

Today I could have bought a McLaren 765LT...

And spent 50 years dreaming about a sweet ride.

 

Seriously, it would have been spent on audio equipment and LPs anyway. :(

 

But you know if I played it smart and did get the MAC some gal will pull up next to me in her shiny Trans-Camaro and make a snide comment about a nice mid-life crisis.

Actually the crisis started in the 70's. That would just be the payoff.

 

oh well, to dream.


Edited by Stout_fan, 13 July 2021 - 06:21 AM.

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#15 ER Pemberton

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Posted 13 July 2021 - 06:32 AM

I remember seeing some commercials like that maybe 20+ years ago... Did you know that if you invested $10,000 in [this fund] in 1980 it would be worth over $1 million right now?  I have tried to get this idea into my kids' heads.  Their grandfather set some money aside when they were born, nurtured it and turned it over to them when they turned 21.  We told them it was okay to take $5k for a down payment on a car or whatever but that investing it NOW and not touching it will make them very happy later.  Time is on their side.  My oldest son did a little trading and made some money but eventually took that, put it with the rest and stopped trading for now.  For many people, it's having that initial $10k in the first place... especially at a young age. 


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#16 KSUwildcatFAN

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Posted 13 July 2021 - 06:58 AM

I remember seeing some commercials like that maybe 20+ years ago... Did you know that if you invested $10,000 in [this fund] in 1980 it would be worth over $1 million right now? I have tried to get this idea into my kids' heads. Their grandfather set some money aside when they were born, nurtured it and turned it over to them when they turned 21. We told them it was okay to take $5k for a down payment on a car or whatever but that investing it NOW and not touching it will make them very happy later. Time is on their side. My oldest son did a little trading and made some money but eventually took that, put it with the rest and stopped trading for now. For many people, it's having that initial $10k in the first place... especially at a young age.

That's why I'm trying to get a house or duplex for my current kid and one for the one in the oven. For one, they can take a loan out on it to pay for college if they choose. Or eventually live in it and put the rent/mortgage check into investments. If they're smart, and I'll do my best to teach them, they'll be just fine in life simply by avoiding a housing payment in their 20s.
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#17 Stains_not_here_man

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Posted 13 July 2021 - 09:25 AM

My kid was given a significant amount of money (over 10k, under 15k) for graduation. He's planning to stick it all in an ETF. That kid never spends money...
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#18 Vagus

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Posted 13 July 2021 - 09:26 AM

Yesssss children. INVEESSTTTT!!!! Fuel the winnings of my advanced age.


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#19 SnowMan

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Posted 13 July 2021 - 09:45 AM

My kid was given a significant amount of money (over 10k, under 15k) for graduation. He's planning to stick it all in an ETF. That kid never spends money...

 

Smart kid. 

 

He should get a job, use the gift money to fund his Roth IRA, up to the limit of his earnings or the Roth limit.  He could get it all into the Roth in 2-3 years.  Then it can grow tax free for a loooong time. 


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#20 Stains_not_here_man

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Posted 13 July 2021 - 09:48 AM

He probably should get a job, but he likely won't while he's still in school. We'll see. He's just getting his driver's license this year...
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