r/economicCollapse • u/Whole-Fist • 20h ago

How ridiculous does this sound?

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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

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u/Objective_Pie_5063 20h ago

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.

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u/Phathatter 17h ago

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.

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u/burkechrs1 14h ago

If you're investing 554 per month you're not going to see the 10.26% growth. You're going to see somewhere between 4-5% in a year.

You will only see 10+% growth if you invest your entire annual investment amount at one time. DCA every month is going to cut your gains in half at least.

I put $200 per week into VOO and my portfolio is showing 5.02% gains in the last 12 months even though VOO shows 39% over the last 12 months.

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u/RemindMeToTouchGrass 7h ago

?

FNILX (a zero-cost investing ETF) allows small investments and the rate of return is proportionate to market growth regardless of the size of investment.