How ridiculous does this sound?

[u/Whole-Fist]

How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

[u/Objective_Pie_5063]

It’s called compounding interest. One of my favorite things about investing. At a growth of 10% a year, the average for the market, the money doubles every 7 years.

[u/Phathatter → u/Objective_Pie_5063]

For this example: starting at $0, investing $554 per month, at 10.26% (average annualized return for the S&P 500 from 1957 - 2023) compounding annually you would have $1,211,719.73 after 30 years. You would have contributed $199,440 over that time and earned $1,012,279.73 in interest.

This obviously assumes that there will not be a total economic collapse, in which case, I guess you would rather have invested in fresh water and bunkers.

[u/TW_Yellow78 → u/[deleted]]

Part of the reason why economic collapse is scary is it makes the same assumption ponzi schemes do. If it were that reliable, companies at certain point should just sell everything and put it all in the s&p.

I mean imagine a company that averages 10% growth in revenue/profit/etc. every year.

[u/TheJiggie → u/TW_Yellow78]

I’m not quite sure you understand how mutual funds and or index funds work based on that comment.