About six years ago, I embarked on a journey at the age of 22 to become a millionaire by the age of 30. Six years later, today, I am nowhere near a millionaire. And if you look at how much money I have made over the past six years, only a fraction comes directly from the stock market.
The average investor made 3.6% annual returns in the past 20 years. If they started with $2000, they would need to wait 175 years to become a millionaire. The S&P 500 $SPX500 returns on average 10% annually, at this rate, one needs to wait 65 years to become a millionaire. At the 20% returns of Warren Buffett $BRK.B , you will need to wait 37 years.
The key it to look at the compound interest formula and try to maximize all the factors without increasing the risk.
Watch the full video on YouTube: