Comments by "" (@ThePlainBagel) on "Investing Won't Make You Rich (Probably)" video.

  1. Hey everyone, three points I want to clarify: 1) by "rich," I am referring to the excessive disposable income flaunted in the trading advertisements (i.e. fast cars, private jets, etc.). I do believe long term (with the help of compounding) you can make a lot of money investing, hence my specification of "investments won't make you rich, probably...at least not in the short-term." 2) Regarding the wealth survey, I should have highlighted that these people got to where they are by saving AND investing. The point I was trying to highlight was that they didn't get there by investing ALONE (i.e. like the example, where you invest 10K once and never again) but rather used disciplined savings to fuel their investment returns. 3) I believe investments are VITAL and that over time they can earn you a lot of money when combined with a strong savings program. Sorry if the video came off as anti-investment; I promise you that it is not. Sorry for any confusion, one of the problems with making an unscripted video!
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  2. I meant to respond to this earlier...thank you! Really cool to get positive feedback from such a large YouTuber :)
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  3. Happy Friday everyone! Interested to see if anyone has ever tried one of the mentioned trading programs; what was your experience if you have? Also curious if people agree or disagree with any of my points.
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  4.  @nealhickey9482  If a company pays you $1 in dividends for a $25 stock, you'll earn 4% return just from dividends. BUT lets say the price increases to $40. NOW if you buy the stock, you'll only earn a 2.5% dividend return. So you won't earn as much in dividends if you buy the stock at $40 versus $25. I think that's what he's referencing.
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  5.  @Luis-bk9jn  Technically some people distinguish between saving as in keeping money in an account and investing as holding securities (i.e. money is either SPENT, SAVED or INVESTED). Making this video though I was using the terms interchangeably.
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  6. Ya I wasn't clear but I was referencing bitcoin's fall, not its 2017 rise
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  7. I'd reckon he'd agree with a lot of my points. Also, I love Buffett, but he started off in a pretty wealthy household, which is my first point, you need money to make money with investments.
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  8. Don't get me wrong, I agree investing is the way to grow your wealth, but I don't believe most people can retire in their 30's using an investment strategy to take $10,000 to several hundred thousand. The point of the video is not to discourage investing, but rather to ratchet down expectations so people don't go chasing dangerous investment strategies. I also should have explicitly defined what I meant by "rich." Yes, investments can help you do things like buy a house, a car, etc. In that way, they really can build your wealth, but you need savings to back them up.
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  9. No offense, but I don't think you understanding compounding. Compounding (typically) works on an annual basis; you would not have experienced any compounding in your first year...
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  10. Ya I try to avoid click bait titles, but every so often I'll indulge, hopefully its not enough to detract from the channel.
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  11. With savings, yes you can make a lot of money! But the key factor is the saving part
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  12. You need to include compounding! The math should be like this: $10,000*1.6^10 = $10,099,511.63. The idea is that you reinvest your returns, so in year two if you reinvested the first $6K, you'll get $9.6K (60% of $10K and $6K), and the amount grows every year if you keep reinvesting what you earn. Hope that clears it up.
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  13. Yea I suppose my point was primarily that you need to fuel your investments with savings, you can’t get rich by just making amazing investment decisions. Great points though!
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  14. Fair point, and I hope I don't discourage others from saving/investing; I totally agree that you can reach your financial goals with a smart approach. My objective was simply to discourage others from chasing get rich quick investment schemes. I should have been more explicit in what I meant by "rich" too, but I was moreso referencing the hyper-wealth you see flaunted in investment ads. I'll try to keep the pessimism to a minimum moving forward, thanks for the feedback.
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  15. I don’t claim to be an authority, just raising basic arguments against get rich quick investment strategies.
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  16. I don’t think it’s a millennial mentality at all; millennials more than any generation are untrustworthy of investments. Also I’m an active investor, the whole point of the video is to discourage high expectations, not active investing.
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  17. When did I say savings will make you rich? Also when did I say not to invest?
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  18. To clarify, yes, investing combined with saving (i.e. continually contributing) can make you very wealthy, I agree with you. My point was exactly that you can't get there just by investing one lump sum. That's why I used the very simplistic example.
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  19. The three simple patterns piece is actually from someone else! But yes one/two of the advertisements were from Jason.
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  20.  @kc4ril  Interesting, and ya I could have named them but I didn't want to go so far as to create a hit piece on them. I do think their ads are harmful (which I mentioned) but I also can't comment on programs I haven't experienced first hand. That's not to say I believe in them, just that I don't want to pretend I know more about them than I do. For all I know their first lesson could be "investing won't make you rich" and I'd look pretty dumb (though I doubt that's the case!)
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  21. My point though was that you can't (usually) get rich without savings. I was trying to show how far you could go with JUST $10,000. If you add $1000 a month, that's great! You'll probably do pretty well, but you're relying on savings, which goes back to the original point.
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  22. Ya when I was editing the video I realized I never defined "rich" but I'm more or less referencing the wealth being flaunted in the ads I referenced (i.e. private jets, Lamborghinis, etc.)
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  23. All those people have an uncommon amount of wealth (“investment wont make you rich PROBABLY)... I wouldn’t recommend that the average Joe follow in their footsteps. And as per my pinned comment, the whole point is that you need savings to fuel investment returns.
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  24. You do know Warren Buffett is considered the best investor in the world for have that exact average return, right? Also, $10M by the age of 26 MINIMUM??
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  25. 25, certainly still have plenty to learn but I’ve been in the field for 5 years now and I’ve been studying it for 9
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  26. Let not our differences divide us...glad you're able to look past my questionable choices and still enjoy the channel haha
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  27. I’m from Ottawa in Canada, thanks for the kind words!
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  28. Haha that's one of the best compliments I've ever received, thanks!
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  29. Ya honestly I was going to look into banning those ads but they kind of drive my point home haha
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  30. No I’m not making a claim about the validity of his program, just that his advertisements are harmful
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  31. Find me an advisor that's willing to claim investments will make people rich! That kind of statement will put them in very hot water legally! And while I agree that the message may be misinterpreted, the point is that I believe investments are vital, but that we can't expect them to take us from nothing to millionaire. Also I've never claimed to be a veteran of the field, but I do have a bachelors of finance, my CFA, I'm studying for my CFP, I work as an investment analyst and am working towards becoming a portfolio manager in the next couple of years. So safe to say at the very least I know a bit more than what someone might learn from YouTube videos. :)
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  32. Hi Kenneth, yes I do! I suppose my point is that you shouldn’t expect to make all your wealth overnight like some people hope for. A lot of our clients are already well off when they come to us and we work to invest their money so that it earns a reasonable return, but we don’t speculate and bet on “big wins.”
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  33. If people can garner the resources to retire early, all the power to them! But I don't think a lot of people are able to achieve that, and I would worry that some would pursue risky investments to try and "catch up" to others. I guess it depends on how people plan on achieving FIRE, I have no issue with the concept in and of itself.
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  34. You didn't watch my video, did you? If you took a second to watch the video or read the comment I pinned, you'll see that the guy who "likes data" and discourages data mining literally cropped words out of the clips he shares to make them sound like I'm saying investments will make you poor (my whole channel promotes investing, btw). Nothing like a bigger channel that's pushing a real estate investment course trying to belittle a smaller channel.
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  35. That’s not true actually. You only pay a % tax on the profits. If your tax rate was 30%, and your investment of $1000 made another $1000, you would have $1850 after-tax. You pay half the tax rate on the additional $1000 you made, and you don’t pay investment taxes on what you start with
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  36. Haha can’t give it away in the comments section, but I don’t play online a lot anyway
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  37. From my understanding there's definitely a lot of money to be made in investment banking, but it's a cut throat industry. A lot of late nights at the office. That's about all I know. Thanks for the support!
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  38. The point of the $10K example was to isolate the impact of investing without a savings program; one of my points in the video is that you should have a strong savings/contribution plan for your investments. Certainly by both investing and making regular contributions you can make a lot of money
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  39. My calculation includes compounding... what part of my math is wrong? My first point was investments won’t make you rich in the short term, compounding does very little early on. Don’t worry I already know how to invest 👍
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  40. Fully aware of the difference, I don't believe many people (especially beginners) make a clear distinction between the two however. Two approaches within the same field. Yes, the title is certainly a little click-baitey, but that's different from your first point...and if you define "rich" as Lamborghinis and private jets (i.e. excessive disposable income, as pictured in the ads I reference, I clarify my definition in the video description) than the title still holds. Obviously rich is a subjective term, but the whole video is centered around the trading ads.
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  41. Is that with end of year or beginning of year compounding? I think the extra year was from me using end of year, but I may be mistaken
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  42. Whoops, I think you’re right, thanks for pointing out
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  43. I'm a value investor at heart, and I just finished reading the Intelligent Investor in January :) I'm a big fan
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  44. I think they’d all agree that most people won’t get rich on investments alone. To suggest otherwise is to suggest the average person can copy their success easily
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  45. Very true, and I highly encourage others to invest, you’ve just gotta gauge expectations
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  46. To clarify, I of course believe investments are necessary and not easily replaced by savings (my entire channel is investment-related, and I've been working in the field for 5 years). My point on the savings was that the millionaires fueled their investments with savings and didn't just "luck out" with some incredible investments (my last line is "a lot of these people made their money by saving, not investing alone," emphasis on alone). Given that the video was unscripted I probably wasn't clear on this, but the whole point wasn't to say don't invest (I highlight in the video that the $10K example shows just how powerful investments can be). It's simply to gauge expectations and be critical of trading strategy advertisements.
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  47. I also added a card yesterday at that part to clarify the point that the wealthy have used savings in combination with investing to build their wealth
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  48. My line in the video was "Investments won't make you rich, probably... at least not in the short term." Of course investments can make you a lot of money long-term (as I highlighted at 4:18). I don't understand what point you are contesting.
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  49. ​ @jasontran81  "A lot of these people made their wealth from saving money, not from investing alone." My point is that they fueled their investment returns with savings, they didn't make their wealth with key investment decisions alone.
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  50. Perfect example! Rooting for her stock to recover!
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  51. Thanks Bernardo! I think I'll get my money's worth out of it at least haha, hope all is well!
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  52. If you watch the clip, you’ll see he grossly misrepresents what I said; he actually crops words out of my sentences to change their inference (i.e. “a lot of these people made their wealth by saving, not investing alone,” he cropped out alone). Here’s another quote from the video: “Investments are still a great tool, if used over the long term they can make you a lot of money even with a single digit return, but you just need to gauge your expectations.” I never said saving will make you rich and that you shouldn’t invest; everything I do is to encourage investing. I’m just saying you shouldn’t expect one key investment decision or trading pattern to yield above average results.
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  53. I have covered the topic of “getting started” in a previous video; I agree there are steps to take before hopping into the world of investing
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  54. Amazon is a cash generating company who only survived the dot com crash because they raised money right before their shares lost value. Bitcoin is not a cash generating asset, business, or even functional currency. It might have value in some countries, but it hardly replaces the USD
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  55. ​ @GainsGoblin  Right, bitcoin does generate money for miners, but you don't get that by owning bitcoin; to be cash generating (or money generating, wealth generating, however you put it) for the holder, someone needs to be paying you for holding the asset. Amazon is paid by its customers/merchants for selling products, and the amount they are paid every year has increased, which has led to their stellar growth. Bitcoin does not have a similar operation; you could argue that a bitcoin mining company IS cash generating (which, if they are successful, is true), but people who hold bitcoin do not benefit from a miner's profitability, those that hold the stock in the mining operation do (i.e. the stock is the cash-generating asset in question). This isn't to say bitcoin doesn't have any use (Venezuela is a good example, although the USD is also a popular currency there), but to your original question, I hardly believe it will perform like an Amazon investment post-2000; the two are simply not comparable.
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  56. Totally agree, the average is moreso to provide a point of reference so that people can gauge what an above-average return looks like. It's not to say achieving double digit returns is impossible, many people do see that, but +20% every year? +30%? +50%??? It's obviously much trickier to earn those numbers consistently. Again, even that isn't impossible, but the further away you deviate from the average, the less probable it is.
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  57. It’s easy to explain that some people earn above average returns. It’s not to discredit your strong return, but you yourself highlight that luck played a role (the title of the video does say investing won’t make you rich probably). Four years is also still a relatively short time period; since 2008 we’ve had very low interest rates and the markets have been positive as a result. It will be very difficult to maintain a 50% return through the next downturn.
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  58. I actually do have a video on it already: https://youtu.be/utLIlOAwLeU It’s an older one so the quality isn’t as great but the content’s there
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  59.  @CocoaPica  That is a great return, but you'll need to repeat it consistently to get rich (did you just start 4 months ago? If not, what have your other returns been?). I don't want to undermine the work you put in, I believe you worked hard, but luck plays a huge role, and overtime, luck tends to average out.
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  60.  @CocoaPica  Gotcha, those are great returns! But I still maintain that the average person probably will never see numbers like that. Best of luck with your trading
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  61. I have a Patreon you can join if you'd like (https://www.patreon.com/ThePlainBagel). It's certainly not required though, I enjoy making the videos :)
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  62. You only get the return at the end of the year, so it add an extra year (I.e. you don’t earn 9.8% as soon as you invest)
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  63. Yea I provided some clarification in a pinned comment; what I really meant is you need to save as a way to fuel investment returns; I certainly think people need to invest, and that doing so can make you quite a bit of money.
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  64. Don't get me wrong I believe investments are vital (my whole channel is investment-related after all!). I should have been more clear in the video though.
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  65. Ya, could have waited for a better day in the markets to post a damper video...oops
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  66. I suppose I should have clarified that investing ALONE won’t make you rich, but you raise some interesting points, thanks!
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  67. Keep looking and let me know if you find it (Y)
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  68. It's not really a field I've studied so I can't comment very much on it, but I do know it has some of the "get rich quick" appeal that inexperienced investors might buy into, so it does attract a lot of people for the wrong reason.
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  69. Very good point; the Dalbar studies highlighted lack of capital as one of the main reasons for poor performance, but that was for 2017. I'd be interested to see how they would have ranked psychological factors versus capital constraints for a year like 2009. Thanks for the comment!
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  70. Ya someone else mentioned the ads were appearing before this video. I thought about removing them but they do provide a nice opener to my video about them haha.
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  71. Haha I suppose it was a bit timid for a "rant." Appreciate the comments!
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