0:15 good afternoon and welcome to people making money I'm your host Kevin bemel and we are here every Wednesday afternoon 12:30 Pacific Time 3:30 Eastern time and an hour in for Central and Mountain and we talk about all things related to job hunting professional issues and Investments and wealth building so anything that affects your financial life um is fair game for this hour that we spend together on Wednesdays so if
0:50 you saw either of my shows earlier this week I've been uh touting that today we're going to talk about the uh I put it in air quotes magic of compound interest so I want to talk about it in concept first and then we're going to get down to some I don't want to call it math because you know that'll might send you screaming off into The Nether world but uh we're going to get involved in some money so you can see how it actually works and how it can benefit you um but here here's the situation um if we look at the various ways of
1:27 Building Wealth well so let's let's just take some of them kind of off off the top of our heads one is you could play the lottery okay um Powerball I I think I read somewhere the Powerball um amount is up over a billion dollars unless somebody won it just recently 1.4 billion dollars I think so I you know I guess you could buy Powerball tickets and and hope you win the lottery and and indeed if you did then um you know you you pretty much be set for life at least
2:02 in theory although um as I recall um there's a huge percentage of people who win the lottery who within about seven years I believe don't have any of the money left if you can imagine uh but that that is one way of becoming wealthy um another way is to start a business um that is extremely successful and that you can either sell to a larger company for a a bunch of money or maybe take public um so if you've been following the financial news at all um Birkenstock
2:39 the the shoe making company um is looking to go public uh soon and they're um the private Equity company that currently owns them is looking to sell 39 million shares of stock at between I think it was $44 $49 a share and and if you were to calculate that out um based on what percentage of the company that represents and if they do in fact sell it for um somewhere in that range I guess the company would be worth about eight and a half to n billion dollar right so if you were an early investor
3:16 if you're invested in the private Equity Group that owns um Birkenstock you know depending on what you pay to buy your share um you're probably going to make you know a whole lot of money um for most of us probably enough money again to you know be set for the the rest of our lives um and and even without something you know that that fabulously successful um um I I know of someone who uh started a small business and um she was eventually able to sell it for um I
3:52 think it was in the neighborhood of about you know $5 million well you know if you live you know reasonably prudently $5 million can last you for you know a long you could retire on $5 million you certainly could okay so um the uh the um reality is these are you know these are some ways of making a whole bunch of money um notice they all have something in common and that is they entail huge risk so one of the
4:30 reasons why um the Powerball um um jackpot or whatever it's called is so large is because so many people have bought tickets and haven't won that's how it builds up I I don't know exactly what the formula is but but undoubtedly Millions upon millions of people have bought Powerball tickets that didn't win and it keeps adding to um the size of the pot for the person who eventually does and and in fact the chances that any particular ticket will win are
5:05 absolutely minuscule so you know probably well not probably certainly lower than you know playing craps um in in a casino um as as well um the um uh private Equity um you know investing in in in a business like that like like Birkin stock so um while private some private Equity firms have better records than others um when all is said and done for people who are investing in businesses um it that too is is a
5:40 numbers game so if you talk to for example Angel and seat Capital Investments they'll tell you that if they're doing well if one out of 10 Investments um does well enough to basically bring them even for the other nine on which they lost their investment or lost most of their investment plus you know a little bit of profit so the that any one business will be a home run so to speak is is very very small okay even for experienced
6:17 investors um and and likewise you know starting your own business while it's entirely possible to start a small business and to be able to build it to the point where you live you know a nice life um for most of us we're not going to turn around and sell our businesses for a large sum of money um most small businesses just don't have an equity value um like that um and and and uh especially if it's a service business so then even less so because with a service
6:52 business really the value in the business is is us the people who are um making the business run now we may be able to sell our business to a similar company with us included for a while and get you know some money for doing that that that's always a possibility um but again um the the the number of people who start a business who turn around and are able to sell it for a lot of money certainly enough money to retire on retire on is actually relatively small so if if these ways of making enough
7:30 money to uh retire on or at least you know have Financial Security however you would Define that um if if these are high-risk um Ventures so what is a low-risk venture and probably the lowest risk Venture that you can engage in and this is just you know general advice this is this would not necessarily apply specifically to you okay okay so I'll I'll I'll give that you know um caveat here at the beginning right anything
8:05 that you do you you should speak to your financial advisor or get a financial advisor to look at your specific situation but for most people the best way to build wealth is by making periodic Investments that build up over time okay and when they're earning a rate of return whether it's a the same rate of return year after year after year or whether that return fluctuates um assuming you're not taking any of the money out you are benefiting
8:41 from what what is called compound interest okay so compound interest basically means interest paid on the interest that you've already earned okay so I'm gonna I'm gonna I don't have a PowerPoint today for those of you who don't like PowerPoints I'm going to open up a whiteboard here uh let's see yeah new one okay um let's see hopefully this is going to work correctly okay so here we got a whiteboard um in pres presentation mode
9:17 I guess it is okay so I'm just let's just look at a real simple um uh a real simple oh okay a real simple example okay so let's say you have $100 okay and let's say that you put that $100 here we'll just so you just so you're clear that $100 in an account that pays um
9:56 four% per year Okay so each year all right so at the end of the year got zero Co at the end of the year okay you're going to have earned $100 times 4% which equals dollar sign $4 okay so at the end of that year
10:31 you're now going to have in your account $4 okay and let's say you leave it in the account again for a year at 4% okay uh per year okay so this time you going to earn not four but $4 and 4% of $4 which is uh 1% of $4 would be 40
11:09 cents so uh I'm sorry 1% of $4 is going to be 4 cents so you're going to have $46 okay so at the end of two years now you have $1 $8 and 16 okay in other words because you earn $4 in interest the first year and left that in the
11:46 account you earned additional interest above the $4 the second year of 16 now your total is $108.6 okay now you say wow 16 cents big deal well true enough 16 cents may not seem like a big deal but if you were to leave it there for a a long number of years what you're going to find is over time the additional amount that comes from leaving the interest and letting it compound letting it add up that way
12:22 becomes larger and larger and larger okay and and in fact over 40-year period you're probably going to have um roughly $300 um I I I think um and so you'll have put in only $100 of your own money and you'll have earned $200 in interest okay now you say $300 big deal well but you only invested $100 so if you had put if you had invested $10,000 now you would have $330,000 so you would have earned $20,000 in
12:58 interest on a $110,000 investment I.E in other words you would have gotten twice your investment interest just by letting the interest compound okay and you and and keep in mind you haven't done anything you haven't added any money to the account you've just put in the original amount and just let it sit there year after year after year okay now so this is the magic or the power of of compound interest okay now um how how
13:34 can you quickly figure out um the power or the magic of compound interest so I'm going to teach you a um a quick rule of thumb and it's called the rule of 72 okay the rule of 72 so the rule of 72 says that 72 divided by the interest rate that you're receiving will give you the number of years it takes until your money doubles
14:13 so if you put if you invest money uh at 1% okay so the rule of 72 says 72 divided by you don't actually don't divide it by 1% you divide it here let me let me take the 1% off a little confusing eraser okay okay so you you don't actually divide it by 1% but you divide it by the number of the percentage rate so 72 divided by one because it's a 1% return
14:49 means it'll take 72 years to double your money okay now you may be asking well how did you know that you'd have about three 00 after 40 years and the and the answer is if you divide 72 okay this time divided by four okay that equals 18 years okay so that means every 18 years your money is going to double okay that's so that's how I was able to work
15:25 that out all right so um this gives you a rough rule of thumb well let's say you don't want to rely on a rough rule of thumb you want to do some more precise planning okay uh let's close the Whiteboard okay so let's I'm going to go ahead and share screen and we're going to look at some calculations and some information okay so let's let's um we're going to go through an exercise of figuring out um
16:02 how much money you'll save if you invest a certain amount and we're going to go through another exercise looking at how much do I have to save in order to have a certain amount after a certain number of years okay so uh that may sound a little bit difficult to follow but it'll become clear as we do the examples so the first thing I want to look at is let's look at just regular old savings account rates okay they've gone up a lot o in in the last two years um as among other things the Federal Reserve has
16:37 raised interest rates so notice um these are the I think these are the top 10 or so interest rates being offered right now so you have 4 and a half% a little over 5% four and a half 4.3 5 4.3 5355 5 point uh 4.75 five% so you see a lot there's one two three four four out of one two three four five six seven eight nine so four out of nine okay um are at
17:14 5% okay four out of five are at 5 per. so um I'm gonna you're going to see in the examples um I'm going to generally use 5% um you may think well that's too high or or you may know of an investment where you can regularly get 6% or 8% or even 10% okay um I 5% I think is a a pretty conservative um uh uh interest rate and so that's why I'm going to use that one all right so the first thing we're going to look at is let's say you contribute
17:54 $600 a year into a savings account okay $600 a year into a savings account all right and you let it let's say you start when you're 25 and you want to know how much am I going to have at 65 which is when I plan to retire so that's 40 Years of growth okay and here's your 5% interest rate okay and let's just say it's compounded monthly okay so that means um the interest is added to the principal balance each month so that
18:30 actually gives you a little bit more compounding than what I what I was showing you in the um on the Whiteboard was interest compounded annually okay but interest can be P compounded more frequently than annually it can be done monthly it can be done daily it can even be done what's called continuously okay and and depending on the the terms of of the investment that'll that'll determine it I'm just going to use month ly that's kind of um you know I don't want to say it's in the middle of annually and daily but but it's it's better than annually not as
19:06 good as daily so it's kind of putting us in in that sort of Middle Ground okay so what you're going to find is after 40 years you have invested $24,000 of your own money okay and during that time you've gotten $50,000 over $50,000 in interest I.E you've you've gotten more than double the amount you invested in interest okay so the account is worth over three times what you put in it all
19:43 right does that make sense and that's the compounding of Interest now notice as I mentioned when we were working on the Whiteboard it does start out pretty slow so here you are after uh let's see let's look at 10 years okay so after 10 10 years okay um oops wait 10 years go back one here we go so after 10 years of putting away $600 a year you've your the total principal the total amount you've invested is $6,000 your total interest is
20:20 $1,588 okay so in that sense you've only increased the value of of your investment by a about a quarter after 10 years which you know doesn't doesn't sound very good okay now let's go out to 20 years okay so let's go out to 42 okay so at 2042 20 years from now okay you've invested $122,000 of your own money your total interest is now over $8,000 in other words while you've only
20:57 set aside an additional $6,000 in that second 10-year period the interest you've accumulated has gone from about $1,600 to for that for the first 10year period to 64 um yeah about $6500 during that second 10-year period okay so although in the first 10year period the the effectively you've your account has gone up by 25% the value of your of the overall account based on
21:34 your you know starting with your principal has gone up about 25% in this case it's gone up by 23 67% okay now let's look at the 30-year Point oops a little too far there we go okay so at the 30-year Mark okay so at this point you've invested uh $600 a year for 30 years or you know again $6,000 for 10 years which is $118,000 for 30 years okay your total
22:09 interest is over $222,000 so although you've only put in $188,000 you're you've earned more interest at at third at the 30-year Point than you put in then than the money you originally invested 18,000 okay so you're at about 120% 125% thereabouts okay and and so then F it's really in this last 10 years although you put in only another $6,000 you end up earning
22:46 $50,000 worth of interest in other words you you earned um uh $22,000 of Interest over the first 30 years and then in the last 10 years you earn an additional $288,000 of Interest even though you only invest an extra $6,000 of principal okay that is the power of the interest compounding because as as the years go by you're earning interest not only on the blue
23:21 part which is your principal but on all of the interest you've earned previously that's why the curve keeps getting steeper and steeper and steeper okay now it's not going to go ever go completely vertical that's not possible but it will keep getting steeper and steeper the longer you you leave the money in okay all right now um let's look at a slightly different example okay let's see yeah okay so in this case and by the way uh let me just notice notice you you started out with
23:56 no initial investment okay okay so you had zero in the beginning $600 a year now let's say instead of investing $600 a year you set aside $50 a month which may be easier to do because you know depending on what your salary is setting aside $50 a month you may not notice you know that money um not having that money available whereas having to come up with $600 at the end of the year that may be more difficult okay so you're going to contribute $50 um this monthly okay still 40 years over 40 years okay at 5%
24:36 okay with the interest compounding monthly okay so at the uh 10year points let's see H one second okay here we go so at the 10year point you've you've invested $6,000 but now instead of having earned 155 $88 in interest you've earned $1,764 in interest in other words almost an additional $200 in interest merely by setting aside $50 monthly instead of
25:14 $600 each year okay that too is taking advantage of the power of compound interest okay so if you make your periodic Investments more frequently even though they're smaller now notice by the way $50 per month still adds up to $600 a year so you're each year you're investing the same amount of money it's just now you're investing it monthly instead of annually so over the term of your investment notice at the end of 40 years you have um you've still
25:51 invested $224,000 in principal okay but now your total interest is is $ 52,1 for a total of over 76,000 now compare that with this where your total interest is 50,58504 five versus 763 oh actually
26:26 closer to 8 $100 in additional interest okay merely for setting aside the money more frequently it's it's the same amount over time it's just set aside more frequently okay all right now what I want to do now is I want to compare um this scenario here $50 a month for 40 years at 5% with someone who started saving later okay okay so let's say someone started saving at
27:02 55 okay and they only have 10 years they're going to retire at 65 okay so we're we're only going to do 10 years okay um but instead of um uh contributing $50 a month they still want to have they still want to contribute $24,000 so they're going to contribute $200 a month okay monthly no monthly here we go okay all right so they they start out with zero initial investment $200 a month
27:38 which is $2,400 a year okay which over a 10-year period notice the total principal investment is 24,000 just like here total principal investment 24,000 so both people have invested the same amount of money money $244,000 this person um $50 over a month over 40 years this person $200 a month over only 10 years notice the difference okay after 10 years they've invested
28:15 $24,000 but they've only earned a little over $7,000 in interest I.E for a total of about $31,000 less than half what this person built up that's also a part of the magic of compound interest the earlier you start and the longer you let it compound the more interest you're going to learn you're going to earn learn you're going to earn okay and and you can't make up for the lost interest over a shorter
28:50 period of time it just it doesn't work because the money doesn't have time to work for you um you know you know in the investment okay so the sooner you start saving money the better okay and the reality is um you know maybe right now $50 is is just more than you have okay and and maybe you have some other priorities right first of all you want to make sure you have a rainy day fund so that there's an emergency you don't have to borrow money to cover it okay and then you may have to I don't know
29:26 set up a college fund or for for your children or whatever but um as as quickly as possible you want to get to the point where you're setting money aside to build wealth okay even if it's only $25 a month so let's change this 50 to 25 okay $25 a month means giving up basically you know coffee out maybe once a week or at most you know one and a half times a week so if you put aside $25 a month over 40 years okay you'll
30:02 have invested $112,000 but you'll end up with $38,000 that's if you don't raise the amount ever okay and the reality is as you um continue in your profession or in your your job and you're you start making more money so you can set aside more money okay so maybe you set aside $25 a month for the first two or three years and then you jump to 50 and then after a few more years you jump to 100 and maybe at that you jump to 200 okay whatever it is the more money you can
30:37 set aside the earlier the more money you're going to have in the end because of compound interest okay now while we've been talking about you know what amounts to a savings account a fixed rate account like this okay you don't have to invest in um a fixed rate account um to take to take advantage of um uh compound interest so you could invest um in um a money market account you could invest in
31:14 um different types of mutual funds or exchange traded funds okay now the difference with mutual funds and exchange traded funds is they won't have a a constant rate of return they will fluctuate with the market and there could be certain years where they actually lose money if the market goes way down but they those could potentially be offset by years that are much higher than you know the rate of return of 5% so for example I I think it said in the Wall Street Journal this morning the S&P 500 is up 133% this year
31:51 right so if you bought an S&P an S&P 500 tracking exchange traded fund um on on January 1st presumably whatever if you if you bought $1,000 as of today it's worth $1300 because it went up by um thir um I'm sorry not not $1,300 sorry if you invested $1,000 in an S&P exchange traded fund presumably now it's worth about $1,130 I.E 133% more $130 more okay that would certain that's certainly a higher
32:27 um rate of return than 5% a year which means if you invested $1,000 at the end of the year you only haveif ,50 okay now the S&P goes up and down and so you know you have to kind of have the stomach for the greater risk of an exchange traded fund or a mutual fund um but you know talk to your financial advisor that may be right for you um you know look at the different kinds of Investments that are a available um and again the sooner you start investing
33:02 especially investing regularly okay whether it's monthly whether it's annually whether it's every two weeks okay whether it's um you know every week there's lots of ways you can set these things up depending on who you're what company you're working with what what your financial advisor has available okay look at different options okay um just as if you invest month you get more interest than you if you invest annually if you were to invest um bi-weekly or B monthly by-weekly every two weeks by monthly twice a month so if
33:39 you if you invested uh um 20 you can't do it on this calculator but if you were to invest $25 um every two weeks rather than $50 every month you're actually going to earn even more interest okay okay so $50 a month gives you 76,1 if you were to invest $25 every two weeks first of all what's going to happen is you're actually going to invest an extra um $50 because there's 26 two we periods um in a year right
34:18 because there's 52 weeks in a year whereas there's only um 24 half months 12 months right so half months by monthly would only be 24 okay so in addition to your so in addition to contributing an extra $50 it's going to compound more quickly okay all right so now let's let's look at a different uh uh different issue let's say you want to figure out okay how much do I need to be
34:54 earning each year at the time I retire to maintain my standard of living that I have now okay so if you're just starting out you you may not have the standard of living that you want okay so you may have to say well I'm making you know $40,000 a year right now um if I were making $75,000 a year right now I I have the standard of living that I want okay so
35:30 you you may have to sort of project that a little bit or if you're a little bit farther along in your career and and and maybe you're already making $75,000 a year and you and and that affords you the ability to live the way that you like okay so then you know that's what it is whatever that number is okay so because of inflation what it costs now to live will cost more in the future okay so how do we figure that out well what we have to do is Project into
36:05 the future what a dollar then or what what I'm sorry what costs a dollar now how many dollars that will cost in the future and that's a compound interest problem as well okay so I I I did a little research here and and this may be hard to read um but if you see here it says during the observation period from 1960 to 2022 so last year okay the average inflation rate was 3.8% per year okay that's what it's
36:41 averaged over the last roughly 60 years okay a little under 4% okay so although um inflation last year was much higher than that for several years before that it was much lower and there were other periods when it was much much higher 8 n 10% um there there having been periods when it was much lower than it was you know back in like 2018 2019 that's about as low as it goes around 1 to two per. Okay so now let's look at um an inflation calculator that's what this is
37:16 okay so um and and and and by the way um um for for any of these um if if you want to and I'm here I I happen to using nerdwallet.com it's a pretty simple one all you need to do is is search for um compound interest calculator and you'll get several that you can play with find one that you like okay in this case I looked for um inflation rate calculator okay um I'm sorry not for this this was inflation rate data for this I looked at inflation calculator okay and you can see I got calculator.net I'm I'm sure
37:53 they have all kinds of them okay so we're going to what we want here is the flat a forward flat rate in uh inflation calculator meaning it's going to calculate into the Future Okay so let's let's just take the example we were talking about a little while ago where we said well I want to you know $75,000 a year is what it takes for me to to live the lifestyle I want you know right now okay and the inflation rate on average was 3.8% okay and I want to retire in 40 years
38:30 okay so how much do I need in 40 years to maintain my standard of living we'll calculate it and you see that $75,000 now equals roughly $333,000 in 40 years in other words to maintain your purchasing power assuming an average inflation rate of 3 .8% now it is an assumption we don't know if inflation over the next 40 years is going to be similar to what it was in the previous
39:06 60 you know you could you know you could say I I think it's going to be higher right so maybe you think it's going to be 4 and a half percent okay so now was calculate four and a half percent so in that case notice you're going to need to have $436,000 in 40 years to maintain the same purchasing power that 75,000 gives you now on the other hand you may say no 3.8% is is too high I think it's going to be uh 2.7% on average okay well in that case you need to have about
39:44 $218,000 in order to maintain in 40 years the same purchasing power that 75,000 gives you right now okay so I'm going to go back to the example of 3.8% just because there you know at least there is some statistical basis for that okay so um so there's so three uh $333,000 um is is what we need per year okay to retire okay so what that means
40:20 is I'm going to bring up the calculator here okay and let's say at the point we retire okay um we think that we're going to be able to get a 5% return um on the money that we've accumulated and we're going to live off of the that that accumul that that interest on the accumulated money okay so um what that means I'm sorry let's not make it 5% that's that's too low because the amount of money you'll have is going to be larger so let's let's say it's 10% okay
40:57 so if if you're anticipating getting a 10% return on the money that you've saved over the 40-year period okay so that means you're going to have to have three million roughly 3 million $300,000 saved at the end of 40 years okay in order to be able to live in order to be able to have about $330,000 a year to live off of okay so $3,300 time 10% annually is
41:34 $330,000 okay so the question then is how much do you have to be saving each period in order to um have $3.3 million in 40 years okay so our investment goal is three million uh uh yeah $3,300 th000 okay and you're going to you're going to accumulate M you're going to accumulate your investment over 40 years okay you're gonna have a zero initial investment you're gonna let's assume a
42:10 5% rate of return right now and let's say you're you're going to make monthly contributions and this by sliding this your periodic contribution and watching this your plan falls short of your goal going to find out how much you have to save each month in order to have the $3.3 million okay so let's let's take it up to uh $200 a month here we go okay so at $200 a month it says your plan falls short of your goal okay and and indeed
42:47 at $200 a month you you've only produced about $300,000 okay so let's now let's double that to 400 okay so at 400,000 it it it just doubles what you have $600,000 Okay so let's go to $1,000 a month 90 a th000 okay so after ,000 if you're investing ,000 a month you've accumulated $1.5 million after 40 years at 5% okay now you may say wow $1,000 a
43:23 month in savings that's a lot yes yes it is okay okay um but it depends on your salary all right so the reality is it's going to take about oops went too far it's going to take about $2,000 a month actually a little bit more than 2,000 let's try [Music] 2050 okay so it's going to take $2200 a month to save up $3,300 th000 in 40 years okay or roughly um about2 5,000 a year but keep in mind
44:03 um wait okay yeah um okay so here's the thing one of the assumptions we've made is that you're not going to use any of your principle once you retire okay but that that probably isn't the case you're probably going to start using some of your princip Le okay so the reality is um in order to maintain your lifestyle you may not need quite that much okay this is why by the way you want to talk
44:38 to a financial advisor because they're gonna they're going to help you figure this out specifically to your needs okay um so you you can see that um setting aside a couple of thousand dollars a month um you know that that's that that that's a lot okay um uh 25 to 50 10 years yeah okay but the reality is that um you've set aside
45:15 um 250 you've set aside a million dollars total if you're setting roughly a million dollars total if you're setting aside 2,200 a month over 40 years and you end up with over $3 million That's The Power of compound interest that is the magic of compound interest okay now again we've been looking at examples where there's a fixed interest rate by the way let's let's look at this let's say you didn't get 5% let's say you
45:51 got 6% okay so if you're if you getting oh it went back down to five and a half okay so if you're getting 6% okay um now you only have [Music] to yeah now you only have to set aside $1,700 a month in order to reach your goal of $3,300 th000 at the end of 40 years
46:26 okay and let's just let's just take it up um to well here let's let's do a let's let's do a search um average return ump 500 let's just see what we get for that okay so the 30-year um average return on the S&P 500 was 75% same with the 20 year return the fiveyear return the 10year return was was higher so let's let's look let's
47:01 let's use now oops let's use seven and a half percent okay so if we take it up to seven let's say you put it in an exchange traded fund and uh that tracks the S&P 500 and you did that over 40 years okay how much would you have to set aside oops went too far there it is okay you have to set aside um yeah $1,100 a month so if you set aside $1,100 a month in an S&P um
47:38 exchange traded fund again past performance is not necessarily predictive of future performance but um if you had done that 40 years ago okay and you got an average return of about 7 and a half% a year so you would have over $3 million now and and by the way look at the difference of what you invested so um your total um in investment uh wait a minute that's that's not right so your total investment is 1100 time 12 so about 13,000 a year times
48:15 10 130 uh so you've you've invested about um a half a million dollars and you end up with over $3 million that is the power the magic of compound interest okay so I know that was I know that was a lot of money I.E math okay um but but you know don't freak out it's it's it's not half as complicated as it looks especially since nowadays you can go online and find these calculators and just plug in numbers and um you know
48:53 have a sense of of how you know of what how things end up back when I started doing this there was no internet you had these these books with what were called constants in them and and they were numbers you use as multipliers um and and you would like if you had $100 and you wanted to know you know how much would I have after 10 years at 5% compounded annually it would give you the factor for that and you multiply 100 times that factor and that's how much you would have it was it was much more difficult than having online calculators so now with online calculators you can um you you can do it
49:30 a lot more easily okay so what what is sort of the moral of the story in order to take advantage of the magic of compound interest there are two keys one start early as early as possible investing money even if it's only a little bit get in the habit of investing money and two keep investing period I odically keep adding to it because just as the um interest builds up if you're building principal at the same time that's how you get that steep curve especially
50:06 towards the end okay and the curve keeps getting steeper and steeper over time so the earlier you can start the better off you are well um we're we're actually a little bit early today but that's all right um no no sense in you know belaboring a point so I thank you very much for joining me I hope you found this um enlightening if if not interesting um you know hopefully money is interesting I I know clich but we we we won't say it out loud um in in any event um that this is our um last show
50:41 for this week we start again next week on Monday at 10: am with trust and Estates weekly Tuesday I'm sorry 11 sorry Monday at 10:00 a.m Pacific time trust and Estates weekly Tuesday at 11 am Pacific time with business lessons from the military and uh seven days from today at 12:30 pm Pacific time we'll be back again for the next episode of people making money so just a couple things before I let you go um if you're
51:16 not a subscriber to our YouTube Channel please do consider subscribing um that way you'll always be notified when a new um a new episode uh posts and also if you have uh an interesting way of making a living um and you think you would make a good guest for the show or you know someone like that uh do send me an email the way to wowow atb.com the email address will be in the show notes and let me know about you or the person you have in mind um maybe you will appear on
51:54 a future uh episode of the way to wow show and likewise um if you are involved professionally in uh trusts and Estates and probate matters um would also love to consider you as a guest for trusts and Estates weekly so let me know about that um it's always fun to have guests and uh that way you know you don't have to listen to me you can you can listen to somebody else so um that's all for today thank you very much wishing you a wonderful rest of the afternoon and signing off Marie you are my bell all
52:30 the best folks