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how to invest now and retire early? | Stock Market Strategy - YouTube
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hey friends i hope this video changed
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your life you can be a brand new
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investor
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or an experienced investor often there
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is like so much
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noise about the stock market crashing
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and the stock market is too expensive
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and you have all these like noises
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coming at you
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so is the stock market really too high
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and is it
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too late to invest i relate finance to
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real life i'm not sure if you are
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feeling the same way but i'm
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trying really hard to resist noise
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around me
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because it's very distracting 10 years
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ago i don't remember
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so many distractions around me i'm not
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too sure if i got
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better looking some wise old man once
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said
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man age like red wine this video is for
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those who have
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not started to invest because you think
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the market is too high
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i have a solution for you this video is
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also
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for those who have like a lump sum of
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money and unsure
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where you should invest it last but not
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least i also know some of you who have
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been following me
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and became millionaires and some even
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multi-millionaires
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i do read your messages i mean when you
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invest eventually you will reach a point
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with millions so what do you do i have
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been through the entire circle like
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twice
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so all the ups and downs i really wish i
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had somebody who
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who have been there guided me instead of
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me going through all the painful lessons
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myself anyway appreciate an early thumbs
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up if it makes sense to you so far
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the stock market is a beautiful place
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and at the same time it's a place
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with full of uncertainty and this is why
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people with a high
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certainty mindset usually get burned i
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actually did a video on certainty
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and it's very important probably one of
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my most important videos i'll link it up
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here
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and down below if you haven't watched it
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so to answer the question above is it
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too late to invest and retire early and
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the simple answer is no
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there will always be amazing companies
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and your job as an investor
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is not to time the next crash because
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historically is proven
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timing the market is dumb this article
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linked below
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your job is to invest in great companies
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and grow with them
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and that's it if you believe there are
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great companies around
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let's continue i'm going to use this
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calculator
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and go through with you your investing
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journey i'll link the calculator
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in the description for those who are
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using ios device
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those who are using android go buy an
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iphone
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download this calculator after the video
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pay attention first
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super important as this sets you up on
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the
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right path this calculator has two modes
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investing mode where you calculate how
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much your money will grow over time
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and withdrawal mode is for those who are
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preparing
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for early retirement starting balance
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well
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my donkey understands this annual return
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rate refers to
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how much your investments will grow per
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year do not if the company is doing well
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it doesn't mean that the stock price
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will go up your job is to predict how
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the company will perform
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5 to 10 years down the road and let
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the stock market do its job durations
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refer to how
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long your investment journey will be and
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periodic additions refers to your
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contributions weekly monthly or yearly
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i suggest if you are just starting out
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and you want to reach early retirement
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fast a weekly and monthly contribution
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is the way to go
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let's say you are a beginning investor
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your starting balance could be one
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thousand or ten thousand
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it doesn't matter let's say we start at
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one thousand
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and your return rate i'm going to use
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twenty percent
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i put twenty percent because i'm trying
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to be conservative here you guys know
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i'm a tesla guy
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and tesla delivery growth and revenue
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growth
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is about 50 a year and it will be for
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the next five to ten years
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so it doesn't mean the stock price will
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continue going up
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50 a year it just means that over the
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long term we should see the results
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of the stock price reflect the duration
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i'm going to put
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10 years and periodic addition this
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means your monthly or weekly
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contribution so let's say
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monthly you decide to contribute a
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thousand dollars and you realize at the
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end of it your investment
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and then 10 years will be 383 000 over
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here you can actually click
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to see the graph of how fast your money
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is growing
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the next thing is let's say you feel
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that a thousand dollars
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is too much you can reduce it to maybe
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500 and you just keep doing this money
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every month you add 500
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at the end of it you realize at the end
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of 10 years you still get about 200 000
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so you just play around these numbers
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yourself maybe you're gonna put 690
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dollars
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you you end up with about 266 000 at the
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end
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of 10 years 500 to 1000 a month to some
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of you you think is a lot
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and some of you think it's little if you
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think it that is a lot
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hey reduce your expenses man i don't
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care what kind of situation you are in
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if you want it hard enough you will find
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a way
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look i still drive a van despite me
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being able to
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afford a lamborghini so what is your
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excuse
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for those who have a lump sum of money
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you invest probably you have on an
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average i see out there is about 200
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thousand dollars a lump sum
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to start investing so it's about 200 000
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and let's say your annual return rate
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i'm going to leave this at a constant 20
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where i feel that if you invest in tesla
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you'll be probably nearer to the
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50 40 to 50 range anyway
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being really conservative 20 uh duration
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10 years
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and because you just want to invest a
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lump sum and not do anything to the
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money
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right so i'm just going to put zero you
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realize at the end of it you
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have 1.2 million dollars you can see the
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graph if you click there so as long you
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have a long term outlook it doesn't
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really matter where the stock price
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fluctuates
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so that's investment mode next is
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withdrawal mode so this is roughly where
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you can guess how much you need in your
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balance to retire
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you can see just now if you don't do
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anything stupid for the next like 10
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years you would at least have 250 000
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in your account it's because let's say
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for example 10 years down the road tesla
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has did what they need to do
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and we're just going to reduce the
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annual return rate to just
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10 so the growth is no more exponential
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and you will be like stupid growth with
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inflation
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i'm just going to put at 10 duration 30
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years why
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let's face it we are all going to die at
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some point you will need to stop growing
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your money and start enjoying life
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i've seen investors in their 70s still
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wanting to grow their portfolio
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they get so tied up about money matters
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i mean
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what a farming life is really not about
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money but the money is just
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a tool so start enjoying your money so
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let's say i'm just going to click a two
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thousand dollar
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monthly withdrawal from your account so
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monthly you will draw two thousand
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dollars and you realize at the end of it
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you still have quite a lot of money in
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your account that means your account
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will never go zero
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let's say i decided to draw two thousand
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five hundred dollars
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a month with two thousand five hundred
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dollars a month you'll take me 18 years
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to finish up my money 18 years of doing
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nothing and withdrawing 2 500
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from the account and that is a very good
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decent amount of money to just relax for
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the rest of your life
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and for those who are really determined
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to hit a million dollars you will get a
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million dollars at the end of it so
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i'm just going to put a million dollars
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and
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let's say for example every month you
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decide to withdraw
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seven thousand dollars um it looks like
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you will still end up with hell a lot of
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money
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so i'm just trying to find a frequency
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where i'll end up
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using up all my money 10 000.
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again see with a million dollars every
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month you are drawing
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10 000 us dollars and it will take you
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18 years to finish up all the money 10
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000 every month you could live a life of
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luxury
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um let me just reduce this to probably
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9 000. 9000 will take you 26 years to
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finish up the money you will
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have a pretty good life you roughly get
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the answer i'm pretty sure if i switch
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to 8 000 a month
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i'll never finish up the money in fact i
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think you'll continue growing if the
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annual return rate is at 10 i'm
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beginning to think that this method is
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better than having
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cash flow from properties you guys know
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i own multiple properties but
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it is a really pain to deal with on top
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of that it is very capital
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intensive so guys wrapping up this
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episode i just want to say my personal
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view on life and money and the journey
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i understand that money is important and
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we must
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treat it with respect however you cannot
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have it as your number one
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priority if you want massive growth
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instead think about how
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you can bring real value to the world
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and the money will follow
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this i assure you it may not come
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immediately
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it may take 10 years like i did but
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trust the process
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and i hope this video changes your life
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appreciate the thumbs up to help the
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causes i support
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and as always invest safe
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