Hey everyone! Many of you pointed out that between a max capital tax rate of 20% in the US (I wasn't aware of this, eh?) and taxing the returns every year, my tax estimate was a little high in my example, so I wanted to include the numbers if you EXCLUDE tax (AKA if you could achieve a real return of 7.84%). This is quite possible thanks to certain tax-free accounts, and while it gets a little unrealistic when you increase your contribution rate to $20,000 a year, this will at least provide the optimistic end of the example for comparison: - Years to hit $1M from $10K: 61.0 - Years to hit $1M from $10K + $3K a year: 40.7 - Years to hit $1M from $10K + $20K a year: 20.6 - Real return needed to go from $10K + $3K a year to $1M in 10 years: 54.5%

I think a good tag line to help new investors understand the true goal of investing is "you don't invest to get rich. You invest to stop being poor" it's not about reaching as high up on the money ladder as possible, but doing what you (reasonably) can to raise the wealth floor so your worries become increasingly trivial instead of do or die survival decisions. If you focus on building your base and maintaining your goals, you'll end up being richer than you expected

Of course it will make you rich, 1.) Buy a stock 2.) Make video on KZfaq about your stock 3.) Make more money from ads on KZfaq then you would ever make on the stock allowing you to 4.) buy more stocks. Wash, rinse and repeat

When someone has a goldmine and he is selling picks and shovels. you gotta wonder why is he selling instead of mining the gold himself. These are the tell tale signs of a fake guru, offering quick profits that just fleeces the poor souls who buy into the snake oil. This is why I love this channel, he sets realistic expectations and educates people what to expect when handling their money. Its a shame that fiscal responsibility is not thought in schools.

It should be called, “Investing will make you rich, eventually, after a very long time.”

Wait... I have to do something of value to society to get rich?

I love The Plain Bagel BECAUSE you're a straight shooter. No fluff and nothing to sell, just bottom line statistics! Thank you!

Seriously, Richard, your videos are the best. Your even-handedness and open mind are exactly the kind of 'free' not-professional-advice professional advice anyone should expect from a place like KZfaq. If they complain, tell them to hire a real consultant and see how much that costs them ;)

I watched this video while drinking out of my Plain Bagel mug... which everyone watching should go and purchase.

I remember my first finance professor in college on the last day of classes said investing is cool. But the way to make a lot of wealth quick is outside the market ie a business, like what he did. Those words stuck with me still till this day.

Stop crushing my precious dreams Richard! My Berkshire shares are bound to explode!

For what it's worth... cutting your spending by 10% and putting that into savings every month isn't sexy, but it is what most people should be doing.

Honesty is a rare commodity these days. Thanks for educating us.

This video legitimately made me rethink a risky investment I was considering, and now that same money is in stocks that I've actually taken the time to research and look good in terms of long term growth. Thanks for helping people not get swept up by the hype and actually think about our finances realistically!

You are my KZfaq financial hero because you are genuinely trying to help people rather than monetize their weaknesses, which is rare.

I experimented with KZfaq influencers and "stock guru's" advice the past year with small amounts of money to see how it would actually perform. To start, the investments actually did really well. I was up like 50% in 3 months. It was insane. And then asset rotation happened in February 2021 and where am I at today? Well let's just say my "fun investment money" would be bigger if I had never heard of these guys. I also found it funny how every pick they made and "invested heavily" in was saying, "this is a long term stock we need to wait till at least 2025 to judge" but then have 4 new stocks the following week to go all in on after their prior stock was stinking it up.

Arguably one of the best financial advising consultants on KZfaq. 10/10.

This is exactly the kind of literacy the public needs, but doesn't get enough of, from desperation, greed, ignorance and/or shyster's. I feel like honesty is profitable but people don't want to put in the work since deception is easier. I hope more people out there like you that have clout and influence start leading the public to wisdom.. maybe there's away I could be apart of that.

This reminds me of the saying. If there is a gold rush, the money is in selling the shovels, these influencers are selling courses on how to invest (shovel) in this finiancial gold rush of stocks, Crypto and investments

Crypto can change your life. My good friend was living paycheck to paycheck, struggling to support his wife and 3 kids. Now that his wife left and took the kids, he is financially stable.

Spot on ... one of the current problems is everyone wants the silver bullet. I retired early... just before I turned 60. I did it by first, getting a good education (BSME), second, plowing every dime legally possible into my 401k and other retirement instruments and third starting it all at 24 years of age. Are there other ways to achieve these goals... sure. But many are the difference between disciplined diligence and gambling...good luck with that

The message was very much needed because binge watching so many videos on stocks made many of us believe investing ten grand would turn us into millionaires within 5 years lol

I think this video is what made Richard famous for his integrity and candidness. Just pure and honest. Thank you.

Someone correct me if I'm wrong but Meet Kevin saved like crazy at first. Then with the help of his wife/family, and working as a real estate agent in one of the most expensive areas of California, started leveraging his way into mortgaged properties where he could rent out or flip houses to scale up. That first year or two of saving must be such a forgettable blip in his memory that he can't consider how important it was.... but that's where like 90% of people will be stuck for most of their lives.

Tai López left the chat again x)

We need more people like you, this guy is real and deserves respect

You have one of the best investment channels on KZfaq. No hype, no bs and very sensible.

12:00 my favorite way to “disarm” get rich quick schemes is to try and run a calculation on how much time does the person advertising the scheme would need to become the richest person in the world based on the returns they offered. Even if the returns are 100% per year (which is “low” for these scams), and they start investing with 1k, it would take only 30 years for that person to become the richest person in the world.

It depends on your definition of rich, which for alot of people will be different. When I was under 10, it was the parents of a kid who could afford to pay £80 for a pair of nike trainers who I viewed as rich, while I was ridiculed because I wore an unknown brand that cost around £10.

I don't even know what he said in the video, but even the thought of Meet Kevin trying to debunk anything from this channel made me laugh

I wish this video would get millions of view instead of the other "financial" youtubers. Great video!

I love this channel. I'm as frustrated as you are with this stuff and I appreciate an actual financial professional describing this stuff

Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025

It really is frustrating - when you get into finance - the online algorithms associate you with these scams. Zero interest in the get rich quick schemes.

The Plain Bagel always keeping it real and why i'll always be a loyal folllower. MeetKevin tries to get you to buy his "private courses" and shills you everything under the sun through his sponsors. His political ambitions (which were laughable from the outset) fell flat and he's not some investing guru. He's a guy who saved up enough to start investing in RE and just kept flipping properties and is now trying to leverage his large YT following to enrich himself even more by having you believe he's some savant...spoiler alert: he's not. He's a glorified used car salesman. Follow guys like Paul Merriman, The Plain Bagel and Ben Felix instead. You're welcome.

Great video. It's interesting, I think your comment about the number of high net worth investors who inherited is directly related to the proliferation of get rich quick schemes. I've seen a number of people on forums say the only way they think they'll ever buy a house is if they can make enough from crypto to do it. Meanwhile, a whole class of people are born with more money than they can reasonably spend. People see that and want to know why it isn't them, and the truth is it's just an accident of birth, it's just luck. They think crypto or whatever scam is their way to get into that lifestyle.

Investing will make you rich, but the compounding effect needs time, it’s just math and discipline of investing frequently.

Damn, my boy PB got me in the feelz at the end with that sincere "be safe out there".

This should be mandatory to watch for everyone who starts investing. Great video and very well explained! Thank you!

The 4 most dangerous words to ever say… “It’s different this time.”

I have so much respect for you and the fact that you're so honest. It's so much needed these days

yeah MeetKevin isn't exactly a solid person to be critiquing your common sense

when it comes to investing or becoming rich I follow The Plain Bagel and Stephen graham love these guys!! keep up the good work guys

Im just commenting to boost your video with the algorithm. People need to see this with all these scams going around. Good Video Bagel, Always look forward to your videos.

Thank you for being the voice of reason in a day & age where FOMO dominates financial decision-making.

Thank you for saying that! It's why I say all the time to my listeners (I have a podcast in italian and I basically do what you do)! I got a lot of question such as "ok you told us how economics&securities works, but how to get rich?" and my answer was exactly what you said! Work hard, save money, focus on a career path and give others solutions to their problems (which is basically what any job or company is about, except for scams which are about themselves)! There are no short cuts! But it's really hard to be understood when audiance is constantly bombed with silly courses ads to get rich fast!

Thank you. I've been saying all this for years. I think what you say in this video is obvious to anyone that's willing to run the numbers. But it's just not said often enough and most people don't take the time to run the numbers on their own. Thank you for educating the world my friend! Cheers.

Imo buying stuff like Supercars and expensive houses doesn't reflect richness. A person can use public transport/average car and live in a decent home and still be rich. Guys are working minimum wage and are rich because their investments compounded throughout these years

Thanks, Richard! I appreciate the more down to earth approach to investing advice than the rest of youtube.

Excellent video man This video came at the right time where everybody is promoting shit coins, NFTs or whatever to a vulnerable public. It's really sad. It's good to see a responsable and honest KZfaqr. Thanks

And the fact, that makes investing even worst is that when you invest some money you feel, like the money is frozen. I feel like not many people realize, that it is very hard not to panic sell, or simply doubt in your investment, and simply not hold it long enough.

Holy shit I found an investing channel that is all about investing. And not treating the stock market like gambling(granted most of it kinda is)

I'm a programmer and I always find it funny when non programmers tell me that crypto is the future and they don't even understand the tech.

A dose of reality for many dreamers! Thank you

Love love love this message brother, great reminder to be prudent and stick to long-term consistent habits for success. Thank you!

Applying taxes directly on the return is the same as realizing the gains every year. It seems the return should be higher if you only realize the gains at the end.

You are nice, humble, honest, straight forward, courteous... You are the Canadian Tom Hanks.

What I like about Mr. Bagel's channel, is that a lot of his content is just common sense. Like this video, I didn't really learn anything new, but it's just reassuring to see videos advising some caution and realism, to oppose all those eccentric "not financial advice" videos I have seen over the last few years. Also, that you're not a "hater" in regards to Crypto etc. will probably make a lot of crypto investors, and perhaps even bros, see the light.

Anyone telling you investing won’t make you rich, obviously love and want the best for you. I’m not good doing it alone but getting into the market has been my best decision so far in my road to financial independence as it turned out lucrative for me.

Hi from Brazil! I completely agree with that. The total money supply is limited and it is distributed in the real side of the economy. It is impossible to sustain a return well above the market in the long term, especially if the asset does not supply society with anything of value or consumable

This guy is a sane advisor compared to other garbage material you come across on KZfaq. Richard has his head above shoulders

Well it makes sense that Multi-millionaires would rate saving&investing more highly than people worth 100k-1mil... because saving and investing was MORE powerful for them. If you make 100k a year, and save 30%, you'd hit a 100k net worth outside of primary residence in 2-5 years, depending on market conditions.If you make 300k a year, and had the same 70k/year lifestyle as the 100k/yr guy. You'd have a 230k net worth in the first year. Starting at double their NW in a third of the time. And it just compounds massively from there. Like savings and investing is just more powerful the more you already earn or have. Even if he loses his 300k/yr income in 3 years and makes only 60k/yr after that, if he saved that 230k/yr those 3 years, he already has a 700k-850k nest egg that's earning an average 80k/yr for him, even if he never touched it.

“The only true wisdom is knowing that I know nothing” This is my mentality when it comes to all of life.. including investing. It keeps me open minded to all possibilities. EVEN THE ONES THAT CONTRADICT MY OWN. No one knows the future. traditional investing works sure, but its cool to put some eggs in the untraditional way as well.. yu never know. At the same time be prepared for things to go against your expectations in any of the ways you’re choosing to invest. And have strategies for when things do go your way, and definitely for when things don’t.

This is the dose of truth that most people need! Keep up the good work.

I'm happy just to buy quality companies such as Microsoft and sit on them for a long time to come. Won't make me rich but will certainly make me wealthier in years to come

I’ve never met Kevin but I’ll always take the plain bagel whenever it’s served!

I love your videos. Been in the market over 25 years. I love how honest you are about investing. No flash, no bullshit. Just the truth. Lots of people don't want to hear it. If I ran a fund, I would hire you immediately. Lots of people need the cold splash of water back to reality.

I think your thesis is “it is unreasonable to expect to more then quadruple your investment in ten years or less”. Most millionaires put 10-20 percent of their gross income into retirement and 20-30 percent of their income for 10-20 years into their house. After 35-40 years, they have around $500k in their house and 1.5 in retirement. They are not really rich either but optimized normal. I think rich would be a million outside of retirement and primary house per person as well as maxing out retirement and having a nice house. There are plenty who are house poor or retirement poor.

Three years beating the market and this guy always crushes my dreams. I know what I’m doing… probably

We need more KZfaqrs like you, so many scammers out there, disgusting cringy. I'd much rather a plain bagel.

Thanks! This is one of the most honest videos depicting reality vs. fantasy. I think the reason some may not like your arguments (which are sound, down to earth and math backed) is that they burst bubbles some wish were solid as opposed to hollow.

Love your job here. One caveat: Trading (not investing) is the art of getting rich SLOWLY. Whoever says otherwise is a scammer. Period.

If you teach your kids how to invest, you can have multi-generational wealth and let your grandkids be rich. But I don't see anyone paying for KZfaq ads about that for some reason.....

Absolutely true about the courses people are trying to sell. Lol there is a Canadian guy trying to sell a course worth of $3,500. I wont take names, but everything that is in the course is freely available all over the internet. When they told me the cost, I actually started laughing. It's ridiculous lol!

I really enjoy that you brought up the point that saving money is one of the largest attributes millions find important. I always feel like this is partially because being financially stable makes it so you do not NEED to make bad decisions or quick decisions. The older I get and the more that I see all of the investment avenues, the easier it is to understand that investing really is pretty simple. Especially the better you get at it.

I totally love this video, everyone who isn't wealthy deserves to see this content. Upfront, no bullshi*, telling you how it is and not all this dudes that are attempting to scam others with their flashy scenes.

Us party poopers have to appreciate each other, Mr. Bagel; I appreciate your videos, along with your frankness, honesty and integrity, which I can glean from the topics you cover, and your approach in covering them. Please continue posting these videos! Peace

Your videos are great and the calm way you go everything is the antithesis to over the top KZfaq creators

Exactly. What you said here, was basically the good old wisdom of “if it sounds too good to be true, it probably is” Plus some numbers it back it up and specify it.

Thank you for helping everyone set realistic expectations. Knowing the base rates help a lot with planning your money and future (market gets 6-7% and the best gets 20-25% annualy long term) Maybe in another video you can touch on how these base rates aren't actually promised. You can stay in the market for 20 years and not get this avarege for example

06:40 - I think there is a major difference between Buffett and Lynch and the average investor - and I mean positively for the average investor. They are or were managing way too much money. This decreases their opportunities a lot. That said, obviously nobody should expect to beat the market by this much, especially not by studying on weekends and trading based on random chart "flags".

Richard is always keeping it real with us. Huge respect for you staying true to yourself and your audience. Still a funny video nonetheless!

It is really difficult to find real educators. I enjoy your "plain" brand for it's merit. Keep it up, and thank you for not auctioning yourself to high bidders.

This guy is the human embodiment of the zoomer meme dude

Weirdly enough, I remember that video. I wasn't really in a position to take full advantage of it then, but I agree with it...and I agree with this one. What I try to consider when buying assets and investments is "Do the projected returns seem reasonable?" This obviously doesn't work for everyone because some people legitimately believe that winning the lottery "seems reasonable" as a method to get rich, but that's how I look at it. You can take long shot bets at hitting it big and likely fail repeatedly...or you can act as the casino and reasonably assume that even though not every investment will go up every time you look at it, but that most of them in the long term will trend that way and there isn't much reason to truly worry in the short term. Invest in yourself. Live within your means. Invest in the market. Things will trend upward.

The reason why Meet Kevin misrepresented your views is that he's selling the exact lie you were telling people to be wary of believing. Meanwhile, he got rich selling that exact dream while pretending he did it through Tesla stock.

The monetary supply expands at 7% per year on average and the US stock market goes up 10% per year on average. So you’re looking at closer to a 3% annual return before taxes…assuming you don’t buy in a big portion at a market top.

I would not have become a millionaire on a teacher's salary without investing in stocks and real estate. Investing, not savings is the key to wealth.

The 20-30% returns of these fund managers are given the size and therefore the strive for low volatility of returns. So maybe the same returns are definitely good but far more possible for accounts till 25M lets say?

Just one thing I want to add - When you say "That's not how it works" with regards to buying a single crypto e.g., you should also explain that you mean the average Joe. For every winner you see online, there a hundreds of thousands small, medium and maybe even big sum losers... Well done on the rest of the video. I love it that you try to educate and bring some critical thinking on those crazy times.

Out of all my investments over the years, only 2 have provided life changing prospects in less than 6 months. They were very risky so I only threw a tiny amount I was ok to lose. Besides those lucky events, continually investing and doing your own due diligence is the method that works for me.

it is so amazing that you have the integrity to burst the bubble of the bullshit artists. keep on goin' man. you're a credit to your field and a benefit to society.

Even if one were to "make it" with a single asset, is it enough money to deal with your expenses and spending habits to last the rest of your life without any new money/investment returns? That's the part that I think everyone misses when trying to figure out what makes these 100k+ folks stay rich.

"How Scotty Kilmer made his money." Scotty Kilmer? The car guy Scotty Kilmer? "Rev up your engines!" Scotty Kilmer? I genuinely never thought I would see his name in a video like this.

5yr return on TSLA - 3100% 5yr return on AMD - 1844% 5yr return on NVDA - 1465% There are lots of companies that can give you returns in excess of 50% per year. You just have to go heavy into a couple of the right ones. I personally was buying a lot of TSLA and AMD back in 2017 now worth well over 1M.

Thank you for being real with your viewers.

Really love your takes on every topic you make, very objective and informative.

Thank you Richard. You have no idea how the knowledge you're spreading has made me and my family change our financial habits during the last two years. Just know that YOU made a REAL impact on real people! :)

I invest most indexes(95%-97% of my portfolio), I use a Canadian Tax Free Savings Account(TFSA). The money you put in has been taxed, but the money you withdraw after gains is tax free, similar to a Roth-IRA. This completely eliminates your tax burden in the end. While in Canada we have anther savings tool called RRSP, where when you deposit money into this particular account, the amount you deposit is a tax deduction, only taxable when you withdraw funds(Most people wait for retirement, when their tax rate is lowest).

Very nice video. This has been exactly my experience with investing since I started years ago. The reason I did not fall for these scams is that I know math, ran similar calculations and got to the same conclusion you did. Investing only works if you do it for a long time and constantly fuel it with active income. It did not make me rich, but added a significant boost to my salary. There was even a good month where I made more than twice my salary from the returns, but there were large losses too, specially when the pandemic hit. In any case, it's like you said, prudence matters a lot, I couldn't actually spend all that money, because I had to commit a large part of my salary to make it grow, and needed diamond hands, because selling would imply more taxes. However, I am extremely close to buying a house already, and I have to thank investing for making this happen several years earlier than I thought :)