If any of you will bother to read Ramit's book (or do 2 seconds of research yourselves) you will know that there are thousands of great options to invest in to make these numbers possible. Historically, most mutual funds will get you around 12%, or better (sometimes worse). Listen to Dave Ramsey for more on mutual funds and why they're genius for long-term investing. Roth IRA means you pay taxes now, so after inflation you are left with about 9%. VERY do-able even (especially) in the US.
You can make several investments with $100 each month - debt, equity, many many things. The questions is what rate of return has he assumed that leads him to his logic (of Dumb Dan making $1,00,000 less than Sm Sally). That interest rate is around 9%. And I don't think you can earn 9% with investments in the US unless you take the time off to do a lot of research and Ramit generally discourages this by saying getting started is more important than debating minutiae.
this advice is just piece of crap. this used to work when the interest rate was 15% + more. this is no longer true banks nowadays are givnig you 0.5% to 2% interest rate. pull out your calculator and do your math before bull shitting.
@directorbeau then where? how does he come up with that precise number that smart sally will have more than 100K than dumb dan? tell me what investment can you make by putting $100 away every month?
If any of you will bother to read Ramit's book (or do 2 seconds of research yourselves) you will know that there are thousands of great options to invest in to make these numbers possible. Historically, most mutual funds will get you around 12%, or better (sometimes worse). Listen to Dave Ramsey for more on mutual funds and why they're genius for long-term investing. Roth IRA means you pay taxes now, so after inflation you are left with about 9%. VERY do-able even (especially) in the US.
ahuhn11 5 months ago
You can make several investments with $100 each month - debt, equity, many many things. The questions is what rate of return has he assumed that leads him to his logic (of Dumb Dan making $1,00,000 less than Sm Sally). That interest rate is around 9%. And I don't think you can earn 9% with investments in the US unless you take the time off to do a lot of research and Ramit generally discourages this by saying getting started is more important than debating minutiae.
vnadkarni 5 months ago
this advice is just piece of crap. this used to work when the interest rate was 15% + more. this is no longer true banks nowadays are givnig you 0.5% to 2% interest rate. pull out your calculator and do your math before bull shitting.
mrchocolate4eva 6 months ago
@mrchocolate4eva
he's not talking about investing in banks dipshit
directorbeau 6 months ago
@directorbeau then where? how does he come up with that precise number that smart sally will have more than 100K than dumb dan? tell me what investment can you make by putting $100 away every month?
mrchocolate4eva 6 months ago
@mrchocolate4eva dude your so fucking stupid. Your not worth the time to explain
atlantarock87 5 months ago in playlist I Will Teach You To Be Rich
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10yr of savings makes you richer than 30 yr of savings??? nonsens
sebas28mtl 3 years ago