Author Topic: How I got a 12% compound return over last 10 years and you can too!  (Read 3329 times)

Sunshinewhenitrains

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I started investing when I was 16, I'm now 42. I didn't start getting it right till about 12 years ago, in 2007, at the height of the market. Despite 2008 and the 40% drop in my portfolio. I have made a 12.0%, as of today, compound rate of return over the last 10 years. Attached is the link to the two minute video of how I achieved these returns. My desire is to spread financial awareness and cut through financial jargon so EVERYDAY people can achieve their financial dreams. It worked for me. It can work for you. It's easy do understand in 2 min. ( I attached a screen shot of my return for the last 10 years from vanguard for proof. You can see the date range on the screenshot. )

[MOD EDIT: Spam link removed.]





« Last Edit: June 03, 2019, 07:20:11 PM by arebelspy »

dandarc

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S&P 500 did 12.3% annually over the same time frame. 14.5% if you re-invested dividends.

ETA: Which I guess is your point having watched the video now - buy index funds and let them sit.
« Last Edit: May 26, 2019, 02:10:43 PM by dandarc »

nereo

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@Sunshinewhenitrains: You may want to consider reading the forum rules  (link below), and in particular the part about linking to your own blog/youtube channel.

https://forum.mrmoneymustache.com/forum-information-faqs/forum-rules/

edit: fixed link.
« Last Edit: May 28, 2019, 07:41:37 AM by nereo »

nsmall

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Thanks for sharing the video.  Sorry if you broke some rules.

Sunshinewhenitrains

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@Sunshinewhenitrains: You may want to consider reading the forum rules  (link below), and in particular the part about linking to your own blog/youtube channel.

[url]https://forum.mrmoneymustache.com/forum-information-faqs/forum-rules//url]
Thank you so much for the feedback! I want to be respectful of the place. Won't happen agian.

FLOW

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I think the headline should be: SAVINGS RATES CRUSH INVESTMENT RETURNS

OP: I apologize for being a Negative Ned here, but you got one of the great bull market runs in history, and what is the balance on the account today?  (I can't quite tell: the graph make it look around 50K, but the "Ending Balance" is 88K?)  It looks like you only contributed 30Kish over that time period -- why so little?

Imagine if you had contributed, say, $100K, over this time period... or imagine if, like many do on this forum, you'd contributed $100K each year of that bull market run. 

People spend far too much time optimizing investment returns... when they should be optimizing their savings rate.  And that is done by cutting your living expenses, or by growing your income. 

I feel bad writing that, particularly since we're about the same age and we both love Vanguard index funds.  Nice job on the returns I guess :/

BTDretire

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I think the headline should be: SAVINGS RATES CRUSH INVESTMENT RETURNS

OP: I apologize for being a Negative Ned here, but you got one of the great bull market runs in history, and what is the balance on the account today?  (I can't quite tell: the graph make it look around 50K, but the "Ending Balance" is 88K?)  It looks like you only contributed 30Kish over that time period -- why so little?

That's what stuck out to me also!
Quote
Imagine if you had contributed, say, $100K, over this time period... or imagine if, like many do on this forum, you'd contributed $100K each year of that bull market run. 

People spend far too much time optimizing investment returns... when they should be optimizing their savings rate.  And that is done by cutting your living expenses, or by growing your income. 

I feel bad writing that, particularly since we're about the same age and we both love Vanguard index funds.  Nice job on the returns I guess :/

FIREstache

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ETA: Which I guess is your point having watched the video now - buy index funds and let them sit.

So this thread doesn't add any value because everyone around here already knows this basic strategy of buying index funds and not timing the market.

SwitchActiveDWG

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ETA: Which I guess is your point having watched the video now - buy index funds and let them sit.

So this thread doesn't add any value because everyone around here already knows this basic strategy of buying index funds and not timing the market.

Not everyone, plenty of market timers hang around this sub forum specifically.

Sunshinewhenitrains

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I think the headline should be: SAVINGS RATES CRUSH INVESTMENT RETURNS

OP: I apologize for being a Negative Ned here, but you got one of the great bull market runs in history, and what is the balance on the account today?  (I can't quite tell: the graph make it look around 50K, but the "Ending Balance" is 88K?)  It looks like you only contributed 30Kish over that time period -- why so little?

That's what stuck out to me also!
Quote
Imagine if you had contributed, say, $100K, over this time period... or imagine if, like many do on this forum, you'd contributed $100K each year of that bull market run. 

People spend far too much time optimizing investment returns... when they should be optimizing their savings rate.  And that is done by cutting your living expenses, or by growing your income. 

I feel bad writing that, particularly since we're about the same age and we both love Vanguard index funds.  Nice job on the returns I guess :/
It's a Roth IRA and I out earned being able to invest in it. (Thats why the balance is so low.) I know the market was a bull run. That's obvious now. But it was not obvious in 2007. I remember feeling the fear on the street. I learned alot about investing from my Mom, and even though she "knew better." she got so scared she stopped investing. And my brother, a IVY League grad, took his money out of the market. Yes. This looks obvious now, but the emotion really effects your your return.

P.S Did you get a better return? I would love to see and learn. I posted the screen shot of the actual return because it's easy to look at history and say this or that. But the long term return that people ACTUALLY get is much different.

P.S.S I am a financial planner and I talk till I'm blue in the face about controlling expenses. I was trying to show some "proof" that you don't need to "buy" the next hottest stock to get a great return.
I think the headline should be: SAVINGS RATES CRUSH INVESTMENT RETURNS

OP: I apologize for being a Negative Ned here, but you got one of the great bull market runs in history, and what is the balance on the account today?  (I can't quite tell: the graph make it look around 50K, but the "Ending Balance" is 88K?)  It looks like you only contributed 30Kish over that time period -- why so little?

That's what stuck out to me also!
Quote
Imagine if you had contributed, say, $100K, over this time period... or imagine if, like many do on this forum, you'd contributed $100K each year of that bull market run. 

People spend far too much time optimizing investment returns... when they should be optimizing their savings rate.  And that is done by cutting your living expenses, or by growing your income. 

I feel bad writing that, particularly since we're about the same age and we both love Vanguard index funds.  Nice job on the returns I guess :/

FLOW

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Re: How I got a 12% compound return over last 10 years and you can too!
« Reply #10 on: May 28, 2019, 01:32:31 PM »
I've really only been investing since about 2013, and my return is 8.95% ... so you got me beat :)

We seem to agree on most everything else, and I'm glad to hear you were investing more than money what I could glean from the screenshot and the video. 

Honestly, I'm relieved that you invested more.... because otherwise, I was feeling a little sad about the whole thing.  As it turns out, i was not seeing the full picture and there's nothing to be sad about.  Have a great day.

Sunshinewhenitrains

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Re: How I got a 12% compound return over last 10 years and you can too!
« Reply #11 on: May 28, 2019, 02:43:06 PM »
8
I've really only been investing since about 2013, and my return is 8.95% ... so you got me beat :)

We seem to agree on most everything else, and I'm glad to hear you were investing more than money what I could glean from the screenshot and the video. 

Honestly, I'm relieved that you invested more.... because otherwise, I was feeling a little sad about the whole thing.  As it turns out, i was not seeing the full picture and there's nothing to be sad about.  Have a great day.
Flow, thanks for the thoughtful response. I do love the sharing that is created here.

theoverlook

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Re: How I got a 12% compound return over last 10 years and you can too!
« Reply #12 on: June 03, 2019, 09:56:13 AM »
I respect that you're a financial planner that does indexing in your investments; do you recommend to your clients that they do the same?