Unlock the Magic of Compounding and Retire Rich (Even if You Start Late)
Retire with Eric 【Investing】
[{'start': '0.560', 'end': '4.720', 'text': "I'm sure most of you have heard about"}, {'start': '2.320', 'end': '7.520', 'text': 'the power of compounding and the way it'}, {'start': '4.720', 'end': '10.240', 'text': 'can grow wealth exponentially. But how'}, {'start': '7.520', 'end': '12.240', 'text': 'many people truly understand it? And how'}, {'start': '10.240', 'end': '15.120', 'text': 'many know what it really takes to'}, {'start': '12.240', 'end': '16.800', 'text': 'harness its hidden forces to maximize'}, {'start': '15.120', 'end': '18.400', 'text': 'its power and achieve financial'}, {'start': '16.800', 'end': '20.080', 'text': 'independence?'}, {'start': '18.400', 'end': '23.119', 'text': "Today, I'm going to break down those"}, {'start': '20.080', 'end': '24.800', 'text': 'forces for you, compare their strength'}, {'start': '23.119', 'end': '27.920', 'text': 'with an interesting result most'}, {'start': '24.800', 'end': '30.760', 'text': "investors don't realize, and finally"}, {'start': '27.920', 'end': '33.120', 'text': 'show you a way to become a millionaire'}, {'start': '30.760', 'end': '35.559', 'text': 'automatically. Let me start by asking'}, {'start': '33.120', 'end': '37.920', 'text': 'you a question. Imagine you have two'}, {'start': '35.559', 'end': '40.480', 'text': 'choices. The first choice, you are'}, {'start': '37.920', 'end': '43.360', 'text': 'giving one penny, but it doubles every'}, {'start': '40.480', 'end': '46.320', 'text': 'single day for a month. On day one, you'}, {'start': '43.360', 'end': '49.440', 'text': 'get 1 cent. On day two, it grows to 2'}, {'start': '46.320', 'end': '52.719', 'text': 'cents. Day three, four cents and so on,'}, {'start': '49.440', 'end': '55.520', 'text': 'doubling every day. The second choice,'}, {'start': '52.719', 'end': '59.280', 'text': 'you get a guaranteed $1 million right'}, {'start': '55.520', 'end': '62.440', 'text': 'now today. Which would you choose? I'}, {'start': '59.280', 'end': '65.720', 'text': 'give you two seconds to decide. One,'}, {'start': '62.440', 'end': '68.240', 'text': 'two. If you picked the penny,'}, {'start': '65.720', 'end': '70.760', 'text': 'congratulations. At the end of 30 days,'}, {'start': '68.240', 'end': '72.720', 'text': 'you would have $5.3'}, {'start': '70.760', 'end': '75.439', 'text': "million. Here's where it gets"}, {'start': '72.720', 'end': '78.000', 'text': 'interesting. For the first 15 days, your'}, {'start': '75.439', 'end': '80.159', 'text': 'penny grows so slowly that it feels'}, {'start': '78.000', 'end': '82.720', 'text': 'almost pointless, like you are missing'}, {'start': '80.159', 'end': '85.280', 'text': 'out on the million-doll opportunity. But'}, {'start': '82.720', 'end': '88.640', 'text': 'then in the final 10 days, the real'}, {'start': '85.280', 'end': '91.680', 'text': 'magic happens. Your pennies explode,'}, {'start': '88.640', 'end': '93.159', 'text': 'skyrocketing from just $5,000 to over 5'}, {'start': '91.680', 'end': '96.560', 'text': 'million almost'}, {'start': '93.159', 'end': '99.200', 'text': "overnight. That's pretty insane. This is"}, {'start': '96.560', 'end': '102.400', 'text': 'the power of compounding, turning small'}, {'start': '99.200', 'end': '104.720', 'text': 'investments into unimaginable wealth. No'}, {'start': '102.400', 'end': '107.200', 'text': 'wonder Einstein called it the eighth'}, {'start': '104.720', 'end': '109.600', 'text': "wonder of the world. Now let's bring"}, {'start': '107.200', 'end': '112.079', 'text': 'this concept into the real world.'}, {'start': '109.600', 'end': '114.640', 'text': 'Suppose your goal is to retire with a'}, {'start': '112.079', 'end': '116.360', 'text': "million dollar net worth and you don't"}, {'start': '114.640', 'end': '118.560', 'text': 'want to actively manage your'}, {'start': '116.360', 'end': '122.399', 'text': 'investments. One simple pass to get'}, {'start': '118.560', 'end': '126.240', 'text': 'there is to invest $60,000 upfront into'}, {'start': '122.399', 'end': '129.039', 'text': 'an S&P 500 ETF. Historically, the index'}, {'start': '126.240', 'end': '132.000', 'text': "has returned about 10% annually. That's"}, {'start': '129.039', 'end': '134.080', 'text': 'it. A single purchase. And by doing'}, {'start': '132.000', 'end': '137.360', 'text': 'absolutely nothing for the next 30'}, {'start': '134.080', 'end': '140.160', 'text': 'years, you are an automatic millionaire.'}, {'start': '137.360', 'end': '142.720', 'text': "So what's driving this growth? It comes"}, {'start': '140.160', 'end': '145.480', 'text': 'down to three key factors. The initial'}, {'start': '142.720', 'end': '148.480', 'text': 'investment, the rate of return, and'}, {'start': '145.480', 'end': '151.120', 'text': 'time. I met many people in their 40s and'}, {'start': '148.480', 'end': '153.280', 'text': '50s who say, "Eric, I will have to work'}, {'start': '151.120', 'end': '156.480', 'text': "until I'm 70 to retire with a million"}, {'start': '153.280', 'end': '159.680', 'text': 'dollars." When I ask why, I typically'}, {'start': '156.480', 'end': '162.000', 'text': "hear two answers. First, I didn't save"}, {'start': '159.680', 'end': '164.480', 'text': 'or invest when I was younger. I spent'}, {'start': '162.000', 'end': '166.879', 'text': 'money traveling and enjoying life.'}, {'start': '164.480', 'end': '169.360', 'text': 'Second, I started investing early, but I'}, {'start': '166.879', 'end': '172.560', 'text': "wasn't interested in a boring 10%"}, {'start': '169.360', 'end': '175.360', 'text': 'return. I bought great stocks, doubled'}, {'start': '172.560', 'end': '178.480', 'text': 'or tripled my money in a year. Then I'}, {'start': '175.360', 'end': '180.239', 'text': 'lost most of it in the next 5 years.'}, {'start': '178.480', 'end': '182.840', 'text': 'These folks missed one of the most'}, {'start': '180.239', 'end': '186.159', 'text': 'powerful forces behind compounding,'}, {'start': '182.840', 'end': '188.319', 'text': 'time. They either started too late or'}, {'start': '186.159', 'end': '190.959', 'text': 'wasted price precious years chasing'}, {'start': '188.319', 'end': '194.319', 'text': 'unsustainable returns. And once time is'}, {'start': '190.959', 'end': '196.959', 'text': "lost, it's gone forever. If you are in"}, {'start': '194.319', 'end': '199.360', 'text': 'your early 30s and watching this, one of'}, {'start': '196.959', 'end': '201.840', 'text': 'the simplest and most effortless ways to'}, {'start': '199.360', 'end': '205.840', 'text': 'become a millionaire by retirement is to'}, {'start': '201.840', 'end': '208.319', 'text': 'invest 60,000 in the S&P 500 ETF. Just'}, {'start': '205.840', 'end': '210.879', 'text': "buy it and forget about it. But here's"}, {'start': '208.319', 'end': '213.680', 'text': 'the catch. You need to work hard to save'}, {'start': '210.879', 'end': '216.000', 'text': 'that initial $60,000. You might be'}, {'start': '213.680', 'end': '218.799', 'text': 'thinking, "I\'ve tried saving, but I will'}, {'start': '216.000', 'end': '221.400', 'text': 'never reach that amount." No worries.'}, {'start': '218.799', 'end': '223.680', 'text': 'Keep watching to discover an alternative'}, {'start': '221.400', 'end': '226.480', 'text': "approach. Now, if you're one of those"}, {'start': '223.680', 'end': '228.319', 'text': 'who lost a decade of investing life, but'}, {'start': '226.480', 'end': '231.680', 'text': 'still have a decent job and some'}, {'start': '228.319', 'end': '234.720', 'text': 'savings, you are not alone. I was in the'}, {'start': '231.680', 'end': '237.200', 'text': 'same boat. I wasted at least a decade'}, {'start': '234.720', 'end': '240.319', 'text': 'before I truly understood the power of'}, {'start': '237.200', 'end': '242.560', 'text': 'compounding. After turning 40, I began'}, {'start': '240.319', 'end': '245.360', 'text': 'saving aggressively. Learn the right'}, {'start': '242.560', 'end': '248.159', 'text': 'investment strategies and caught up over'}, {'start': '245.360', 'end': '250.799', 'text': 'the next 10 years. You can do the same'}, {'start': '248.159', 'end': '253.360', 'text': 'by tapping into three other compounding'}, {'start': '250.799', 'end': '256.079', 'text': 'forces. One obvious way to reach that $1'}, {'start': '253.360', 'end': '258.479', 'text': 'million goal with reduced time is'}, {'start': '256.079', 'end': '260.160', 'text': 'instead of starting with 60,000, you'}, {'start': '258.479', 'end': '263.360', 'text': 'will need to more than double the'}, {'start': '260.160', 'end': '265.759', 'text': 'initial investment to 150,000 and let it'}, {'start': '263.360', 'end': '268.400', 'text': 'compound for 20 years. If raising that'}, {'start': '265.759', 'end': '272.240', 'text': "amount isn't feasible, alternatively,"}, {'start': '268.400', 'end': '275.600', 'text': 'you can contribute $800 each month to'}, {'start': '272.240', 'end': '278.479', 'text': 'buy the same S&P 500 ETF consistently'}, {'start': '275.600', 'end': '281.919', 'text': 'for the next 20 years. This is the'}, {'start': '278.479', 'end': '284.880', 'text': 'fourth hidden force of compounding, an'}, {'start': '281.919', 'end': '288.960', 'text': 'approach in investing called dollar cost'}, {'start': '284.880', 'end': '291.520', 'text': 'averaging or DCA. With DCA, you invest'}, {'start': '288.960', 'end': '294.080', 'text': 'the same amount each month, no matter'}, {'start': '291.520', 'end': '296.960', 'text': 'the market is up or down, steadily'}, {'start': '294.080', 'end': '299.360', 'text': 'growing your investment over time. You'}, {'start': '296.960', 'end': '302.000', 'text': 'can automate this process by having a'}, {'start': '299.360', 'end': '305.360', 'text': 'portion of your pre-tax pay deducted'}, {'start': '302.000', 'end': '308.400', 'text': 'into 41k or by directing after tax pay'}, {'start': '305.360', 'end': '311.120', 'text': 'into a brokerage account. The key is to'}, {'start': '308.400', 'end': '314.000', 'text': 'always pay your future self first before'}, {'start': '311.120', 'end': '316.720', 'text': 'anything else. This method can also be'}, {'start': '314.000', 'end': '319.800', 'text': "applied to anyone who can't raise the"}, {'start': '316.720', 'end': '323.120', 'text': 'initial 60,000 but still has 30 years to'}, {'start': '319.800', 'end': '326.400', 'text': 'invest. In this case, your monthly DCA'}, {'start': '323.120', 'end': '328.479', 'text': 'contribution would be reduced to $400'}, {'start': '326.400', 'end': '330.280', 'text': 'and your initial investment requirement'}, {'start': '328.479', 'end': '333.199', 'text': 'drops to just'}, {'start': '330.280', 'end': '336.639', 'text': "$5,000. Yet, you'd still reach the $1"}, {'start': '333.199', 'end': '338.720', 'text': 'million goal. As you can see, your'}, {'start': '336.639', 'end': '340.880', 'text': 'monthly contribution actually play a'}, {'start': '338.720', 'end': '342.960', 'text': 'bigger role than your starting amount.'}, {'start': '340.880', 'end': '345.000', 'text': "But some of you may say, I don't want to"}, {'start': '342.960', 'end': '347.440', 'text': 'wait 20 or 30 years to become a'}, {'start': '345.000', 'end': '349.759', 'text': 'millionaire. Good news, you can'}, {'start': '347.440', 'end': '352.479', 'text': 'accelerate the growth by leveraging into'}, {'start': '349.759', 'end': '355.280', 'text': 'another force of compounding, achieving'}, {'start': '352.479', 'end': '358.000', 'text': 'a higher rate of return while combining'}, {'start': '355.280', 'end': '360.960', 'text': 'the previous strategies. However, this'}, {'start': '358.000', 'end': '363.199', 'text': "isn't for everyone. Beating a 10% rate"}, {'start': '360.960', 'end': '366.880', 'text': 'of return is challenging and requires'}, {'start': '363.199', 'end': '368.639', 'text': 'more effort. In fact, over 85% of'}, {'start': '366.880', 'end': '371.600', 'text': 'professional investors have tried and'}, {'start': '368.639', 'end': '373.840', 'text': "failed. But it is possible if you're"}, {'start': '371.600', 'end': '375.440', 'text': 'willing to acquire the necessary'}, {'start': '373.840', 'end': '378.319', 'text': 'knowledge and stick to certain'}, {'start': '375.440', 'end': '381.039', 'text': 'strategies with discipline. I did it by'}, {'start': '378.319', 'end': '383.199', 'text': 'adopting two methods which allow me to'}, {'start': '381.039', 'end': '386.080', 'text': 'build enough wealths to retire shortly'}, {'start': '383.199', 'end': '388.160', 'text': 'after turning 50. One method is to'}, {'start': '386.080', 'end': '389.960', 'text': 'invest in a handful of industrial'}, {'start': '388.160', 'end': '392.240', 'text': 'leading companies and hold them'}, {'start': '389.960', 'end': '395.120', 'text': 'long-term. This strategy carries more'}, {'start': '392.240', 'end': '397.759', 'text': 'risk and requires active stock selection'}, {'start': '395.120', 'end': '400.160', 'text': 'and ongoing portfolio management. In'}, {'start': '397.759', 'end': '403.039', 'text': 'this video above, I outlined the'}, {'start': '400.160', 'end': '405.840', 'text': 'strategies based on my 28 years of stock'}, {'start': '403.039', 'end': '409.680', 'text': 'investing experience and share how I'}, {'start': '405.840', 'end': '412.160', 'text': 'achieved over a 15% return annually over'}, {'start': '409.680', 'end': '414.639', 'text': 'the last decade. Even after the recent'}, {'start': '412.160', 'end': '418.319', 'text': 'market turmoil, my return over the past'}, {'start': '414.639', 'end': '421.759', 'text': '12 months is over 22%. More than doubles'}, {'start': '418.319', 'end': '423.680', 'text': "the S&P 500's 10%. The other method is"}, {'start': '421.759', 'end': '426.000', 'text': 'to invest in cash flow positive'}, {'start': '423.680', 'end': '428.880', 'text': 'residential properties taking advantage'}, {'start': '426.000', 'end': '431.520', 'text': "of unique benefits that aren't available"}, {'start': '428.880', 'end': '434.160', 'text': 'in equities such as tax loopholes and'}, {'start': '431.520', 'end': '436.080', 'text': 'the lowc cost loan leverage. I explain'}, {'start': '434.160', 'end': '439.120', 'text': 'the details of this strategy in this'}, {'start': '436.080', 'end': '441.199', 'text': "video here. By using both methods, I've"}, {'start': '439.120', 'end': '443.840', 'text': 'been able to significantly outperform'}, {'start': '441.199', 'end': '445.680', 'text': 'the 10% average return, demonstrating'}, {'start': '443.840', 'end': '448.080', 'text': 'proven strategies with meaningful'}, {'start': '445.680', 'end': '449.919', 'text': 'results. This is exactly how I'}, {'start': '448.080', 'end': '453.520', 'text': 'fasttracked my path to financial'}, {'start': '449.919', 'end': '456.479', 'text': 'independence in my 40s and retired at 50'}, {'start': '453.520', 'end': '459.240', 'text': 'by firing all three remaining cylinders'}, {'start': '456.479', 'end': '461.599', 'text': 'of the compounding engine in just 10'}, {'start': '459.240', 'end': '464.000', 'text': 'years. Now that you have a solid'}, {'start': '461.599', 'end': '466.720', 'text': 'understanding of all the forces at play'}, {'start': '464.000', 'end': '469.280', 'text': 'in the compounding game, can you rank'}, {'start': '466.720', 'end': '472.120', 'text': 'them in terms of their power? Which is'}, {'start': '469.280', 'end': '475.639', 'text': 'most influential? time, initial'}, {'start': '472.120', 'end': '478.720', 'text': 'investment, DCA contribution or rate of'}, {'start': '475.639', 'end': '481.599', 'text': 'return. I will review the answer by'}, {'start': '478.720', 'end': '484.240', 'text': 'simulating four scenarios, doubling the'}, {'start': '481.599', 'end': '486.960', 'text': 'power of each factor while keeping the'}, {'start': '484.240', 'end': '490.160', 'text': 'others constant. The baseline scenario'}, {'start': '486.960', 'end': '492.199', 'text': 'has an initial investment of $5,000, a'}, {'start': '490.160', 'end': '495.440', 'text': 'monthly rate of return of'}, {'start': '492.199', 'end': '498.639', 'text': '0.83% or the annual 10% return divided'}, {'start': '495.440', 'end': '502.800', 'text': 'by 12, and a monthly contribution of'}, {'start': '498.639', 'end': '505.360', 'text': '$400. After 360 months or 30 years of'}, {'start': '502.800', 'end': '508.960', 'text': 'compounding, the final balance comes out'}, {'start': '505.360', 'end': '511.840', 'text': "to 1 million and $3,000. Now, let's see"}, {'start': '508.960', 'end': '514.399', 'text': 'the impact of doubling each factor,'}, {'start': '511.840', 'end': '517.200', 'text': 'increasing time to 60 years, the real'}, {'start': '514.399', 'end': '520.880', 'text': 'return to 20% annually, the monthly'}, {'start': '517.200', 'end': '522.440', 'text': 'contribution to $800, and the initial'}, {'start': '520.880', 'end': '525.680', 'text': 'investment to'}, {'start': '522.440', 'end': '528.240', 'text': '10,000. The final balances from these'}, {'start': '525.680', 'end': '531.920', 'text': 'scenarios clearly show the impact of'}, {'start': '528.240', 'end': '534.399', 'text': 'each change. We can conclude that time'}, {'start': '531.920', 'end': '537.480', 'text': 'holds the greatest power in compounding'}, {'start': '534.399', 'end': '540.399', 'text': 'followed by the rate of return DCA'}, {'start': '537.480', 'end': '544.000', 'text': 'contribution and finally the initial'}, {'start': '540.399', 'end': '546.800', 'text': 'investment which has the least power. So'}, {'start': '544.000', 'end': '548.880', 'text': "what does this tell us? First, you don't"}, {'start': '546.800', 'end': '551.760', 'text': 'need a lot of money to be successful in'}, {'start': '548.880', 'end': '554.240', 'text': 'investing if you start early. Second,'}, {'start': '551.760', 'end': '556.320', 'text': "even if you're late to the game, it's"}, {'start': '554.240', 'end': '558.480', 'text': "better than never. And if you're willing"}, {'start': '556.320', 'end': '562.000', 'text': 'to arm yourself with the right knowledge'}, {'start': '558.480', 'end': '564.080', 'text': 'and put in the effort, you can catch up.'}, {'start': '562.000', 'end': '567.200', 'text': 'You might think my simulated scenario'}, {'start': '564.080', 'end': '570.240', 'text': 'sounds unrealistic. After all, who can'}, {'start': '567.200', 'end': '573.320', 'text': 'really have 60 years of investment life'}, {'start': '570.240', 'end': '577.120', 'text': 'or generate a 20% annual return every'}, {'start': '573.320', 'end': '579.440', 'text': 'year? Guess what? The oracle of Omaha,'}, {'start': '577.120', 'end': '582.000', 'text': 'Warren Buffett, has done exactly that.'}, {'start': '579.440', 'end': '584.560', 'text': 'As shown on the last page of his 2025'}, {'start': '582.000', 'end': '587.040', 'text': 'annual letter to investors, Birkshshire'}, {'start': '584.560', 'end': '587.959', 'text': 'Hathway has delivered an annual return'}, {'start': '587.040', 'end': '590.519', 'text': 'of'}, {'start': '587.959', 'end': '593.279', 'text': '19.9% since'}, {'start': '590.519', 'end': '595.440', 'text': '1965. Now take a moment to think about'}, {'start': '593.279', 'end': '598.480', 'text': 'how you can leverage the compounding'}, {'start': '595.440', 'end': '601.040', 'text': 'forces to achieve financial independence'}, {'start': '598.480', 'end': '604.080', 'text': 'and perhaps add Birkshare stock to your'}, {'start': '601.040', 'end': '606.720', 'text': "portfolio. If you're new to my channel,"}, {'start': '604.080', 'end': '608.640', 'text': 'I have published a series of videos'}, {'start': '606.720', 'end': '610.800', 'text': 'designed and organized to help you'}, {'start': '608.640', 'end': '613.120', 'text': 'progress and learn the principle and'}, {'start': '610.800', 'end': '614.720', 'text': "strategy of investing. Whether you're a"}, {'start': '613.120', 'end': '616.800', 'text': 'beginner or someone looking to'}, {'start': '614.720', 'end': '619.279', 'text': 'accelerate your wealth building journey,'}, {'start': '616.800', 'end': '621.600', 'text': 'you can start by preparing your mindset'}, {'start': '619.279', 'end': '624.079', 'text': 'and taking the first step to define your'}, {'start': '621.600', 'end': '625.920', 'text': 'investing journey. Understanding the'}, {'start': '624.079', 'end': '629.279', 'text': 'power of compounding to shape your'}, {'start': '625.920', 'end': '631.760', 'text': 'investment path. Passively investing in'}, {'start': '629.279', 'end': '634.720', 'text': 'broader benchmark index funds which are'}, {'start': '631.760', 'end': '636.720', 'text': 'simple, effortless and effective.'}, {'start': '634.720', 'end': '638.959', 'text': 'Actively investing in individual'}, {'start': '636.720', 'end': '641.279', 'text': 'companies through concentration to boost'}, {'start': '638.959', 'end': '643.440', 'text': 'your rate of return. Using this'}, {'start': '641.279', 'end': '646.160', 'text': 'valuation tool to help you confidently'}, {'start': '643.440', 'end': '649.040', 'text': 'buy and sell stocks. Deploying'}, {'start': '646.160', 'end': '652.079', 'text': 'strategies in both good and bad market'}, {'start': '649.040', 'end': '653.680', 'text': 'times. purchasing and passively managing'}, {'start': '652.079', 'end': '656.240', 'text': 'residential real estate to build'}, {'start': '653.680', 'end': '659.680', 'text': 'generation wealth through tax loopholes'}, {'start': '656.240', 'end': '661.680', 'text': 'and lowcost loans. Finally, adopting'}, {'start': '659.680', 'end': '664.760', 'text': 'proper portfolio and asset management'}, {'start': '661.680', 'end': '666.959', 'text': 'strategies to enhance and protect your'}, {'start': '664.760', 'end': '668.880', 'text': 'investments. Please share where you are'}, {'start': '666.959', 'end': '671.040', 'text': 'on your investing timeline and which'}, {'start': '668.880', 'end': '673.839', 'text': 'path you are taking your journey in the'}, {'start': '671.040', 'end': '676.640', 'text': 'comment section. Thank you. I see you in'}, {'start': '673.839', 'end': '676.640', 'text': 'the next video.'}]