The Financial Industry's Biggest Lie About Building Wealth

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📝 Boldin - The retirement planning tool I use to make sure I'm on track with saving for retirement. It's perfect for "Do it yourself" investors https://bit.ly/3EAAhrJ Check out My Recommendations (It helps support the channel): 🔥 M1 FINANCE Investing- Free $10 (once you deposit at least $100 within 30 days) https://bit.ly/427KBBn 📚 Here's a video on how to use M1 Finance https://youtu.be/kEOS-w21U3c 🤑 Robinhood Investing- Free stock and 1% Roth IRA match when you open an account and deposit money https://bit.ly/3WpmIVg 📝 Empower - Free Net Worth Tracker https://bit.ly/3NUNtwq 📖 Free copy of my Spending Review Spreadsheet: https://bit.ly/48lMVZ1 💬 Sign up for 1 on 1 coaching with me: https://bit.ly/4bAUpYT 📧 Business Inquiries: [email protected] Many of the common ideas about growing money are misleading or oversimplified. One of the biggest misconceptions is that compound interest will magically make you rich. While compounding is powerful, it takes decades to truly build momentum. Early on, growth feels slow, and many investors get impatient, making impulsive decisions that disrupt the compounding process. Staying invested and disciplined is the only way to see long-term benefits. Another myth is that investment growth is predictable and linear. Many projections assume a steady 7% return, but real market returns fluctuate wildly. Expecting perfect, uninterrupted growth can lead to unrealistic expectations, making investors panic during market downturns. Understanding that investing involves ups and downs helps maintain a long-term mindset. A harder truth to accept is that your ultimate investment returns depend on luck, specifically when you were born and when you started investing. Historical data shows that two investors contributing the same amount for 20 years but starting just one year apart can see drastically different outcomes, sometimes differing by hundreds of thousands of dollars. Additionally, people who experience major financial downturns in their early adult years tend to be more risk-averse, shaping their financial decisions for life. However, luck isn't always bad, sometimes the market delivers better-than-expected returns. In those cases, some people feel they "oversaved," regretting that they didn’t spend more. But the real issue isn’t that they saved too much, it’s that they didn’t regularly adjust their financial plan as their investments grew faster than expected. Checking financial progress each year helps strike the right balance between saving and enjoying money in the present. Another misleading idea is that small investments alone will make you a millionaire. While investing small amounts consistently is a great habit, it’s usually not enough on its own. Inflation erodes purchasing power, and someone who saves $500 per month for 30 years might only end up with a portfolio that provides $22,600 per year in retirement, which may not be enough. Increasing contributions over time is essential for building real wealth. One of the most overlooked dangers to growing wealth is fees. While a 1% advisor fee or a 0.50% fund fee seems small, it can cost hundreds of thousands of dollars over a few decades. Paying a financial planner a flat fee instead of an ongoing percentage-based fee can save investors significant money while still providing valuable financial advice. Ultimately, growing wealth requires patience, discipline, and smart financial decisions. Avoiding common misconceptions, regularly reassessing progress, and minimizing fees can lead to a more secure financial future. 00:00 - Uncomfortable truth about growing your money 00:29 - The math behind compound growth 1:10 - Money doesn't magically grow 2:29 - How the math is misleading 4:52 - How your returns are actually determined 6:42 - How your returns are actually determined pt 2 8:13 - The luck factor 9:51 - Investing this much won't make you a millionaire 12:13 - This will slow down the growth of your money 15:20 - How I make sure I'm on track with saving for retirement Affiliate Disclaimer: Some of the links above are affiliate links. If you sign up or make a purchase through them, I may earn a small commission at no extra cost to you. Your support means a lot and helps keep the channel going. Thank you! General Disclaimer: This content is for entertainment and informational purposes only. Everyone’s financial situation is different, so be sure to do your own research and consider speaking with a professional before making any financial decisions. The Biggest Lies About How Your Money Grows The Hidden Flaws in Compound Interest You Can't Ignore What the Investment Industry Is Lying to You About! Why aren't we all getting rich from compound interest? The Investing Industry's Biggest Lie About Building Wealth 269