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The lazy way to get rich - MoneyWeek Investment Tutorials

3815 ratings | 797124 views
Tim Bennett explains the magic of compound interest. Compounding, or or the 'time value of money' - is one of investing's most vital concepts, and is the secret to getting rich without really trying.
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Youtube Video Ranker (1 month ago)
Great work. Your video is currently ranking #3 for the keyword: 'become rich by investing'. You are almost there.
Weareallbeingwatched (2 months ago)
Banning compounding of financial trading would seriously change the wealth distribution eh... (ie: banning empty trades of money for money)
Mark Marshall (2 months ago)
"It's a different video as to what you can invest in to get these interest rates!" Where are you getting these interest rates MoneyWeek? Theory is totally irrelevant if these interest rates are not available in the current market!!! And 'Compounding' in the sense that you're presenting here is NOT about trading the markets is it!!
david baker (3 months ago)
This video is true but false in practice, namely it relies on inflation to be calculated correctly, which few governments have done historically (although this in itself is a lengthy discussion). Thus in real terms the money is decreasing every year. This is very obvious now, although not so acute back in 2011 when this episode was made. Fiat currencies eh?............
Der Gorghast (3 months ago)
Then you can buy a great comb!
Yvette Vinson (3 months ago)
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zunai andre (4 months ago)
And who is offering 10%+ so I can go there?
Tadas Tomkus (4 months ago)
I need be rich in growtopia.
martina cedric maurisio (5 months ago)
Good job.
TheLastLogicalOne (5 months ago)
The interest rate would have to be higher than inflation for this to work right?.
Fubar : (6 months ago)
In China right now the rate is 5% . You put 1 million in the bank then it’s 50 thousand interest , but cause the gdp growths been sliding for years , high rate like this won’t last for too long ...
Jb life (6 months ago)
Is compound interest is hram or Halal?
MAWA (7 months ago)
my right ear feels lonely
vara prasad (7 months ago)
every school student knows this. I expected something intelligent.
PANAGIOTIS MARIS (7 months ago)
another video that i say fix your hair and stop wasting my time seriusly youtube consider an AUTOMATIC SILENCE BUTTON LIKE the over 18 shold be something preventing you from this
Mayank Parmar (8 months ago)
idk about uk and usa but in india , you can easily get 40 to 60 % return on stocks per year. In 2017 i captured 3 multibeggar companies in which 2 grew more than 80 percent and 1 grew by 200% . i think BRICS countries have so many companies with so better valuation than US and UK.
Chris Redfield (10 months ago)
1 million will be worthless after 20 years.
Holy Saint Of Allah (10 months ago)
Fuck interest money!
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H Man (10 months ago)
This is how banks make money
john,royston Lawrence (11 months ago)
He has not included inflation in his calculations + taxes on profits + costs to manage your funds +markets decline. = no profits. The only way to make money is to make big higher than costs and inflation. This equates to vast intrest above all the cost trends. Forcasting ares of growth at a low rate then watch the areas grow faster than costs and inflation. Big profits big cash deposits  or bigger rates of climbs in shares.
strollby (11 months ago)
Good sound advice well explained. Thanks
On The Beats (11 months ago)
Guys this doesnt work unless you get someone to give you interest beating inflation. so basically you are losing money but you think you are getting richer but your value of money keeps decreasing over the years
SupaZyzz (1 year ago)
You will not find high end banks that will give you 10% interest rate yearly , max they will give u is around 2 or 3. Yeah if you go to a shit bank that just opened , they will give you 10% but you never know when they will get bankrupted that you will make -2000 profit
Top Line (1 year ago)
my country charges tax on yearly interest... killing the money-on-money concept!
Ali Arsalan (1 year ago)
He will do shit in the pot of 1.2 million£ at the age of 65?
SRV. 123 (1 year ago)
If this system worked. Then credit card companies would be worth billions. Oh......wait.......Nevermind.
50kT (1 year ago)
I got 477k not 1.2 million when I did the calculation for age 14-18 @10%.. Hmm it compounded at 10% and I broke it down year by year to the age of 65 but didn't get 1.2 million. I got about 477k
Paul Conley (1 year ago)
It's already been said but I have to repeat this. This is a good strategy for a decent retirement. The only way to get rich this way is to start with a much much larger sum than 100.
Chandler (1 year ago)
Stupid ass bullshit video
Janus van Zyl (1 year ago)
The joke is on us... The REAL lazy way to get rich is : #1 to quickly hitup compound interest on wikipedia. #2 Record yourself for 15 min whilst explaining what you've read on wikipedia #3 upload
Jake McGrae (1 year ago)
so the only way to assure 0% principle loss is the TDB8150 by TD Waterhouse/Direct Investing?
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chris stix (1 year ago)
What about inflation rates?
Daniel Mace (1 year ago)
After 20 years, the £265 is worth as much as £105 in the original value after 20 years of inflation - why is this never talked about in these vids?
Josh Potwin (1 year ago)
Daniel Mace just subtract the inflation rate from the interest gained. It should give you a roundabout. Not much but it's free money.
Mo Medea (1 year ago)
£105 will not make £110.25 @5% Muppet!
Peter Martin (1 year ago)
So what will it make, muppet?
123ThisIsMe (1 year ago)
This is the concept banksters have used for centuries
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Jose Lopez (1 year ago)
This is super slow and you won't even be alive to benefit from it. This is only worthwhile if you're starting out early AND with a lot of money. What if the currency collapse or there's another 1929 and the wealth is wiped out instantly? This is why land/property/RE is a better way, or go to business school and learn to manage and grow business.
Josh Potwin (1 year ago)
Jose Lopez America's markets returned pretty much to normal one year after 2008. You own part of the company the amount is still there just let it recover.
Josh Potwin (1 year ago)
Jose Lopez yes you can. theoretically if you had an account with 100 k worth of stocks you could just account for inflation every year and skim off the remaining interest. 7% return minus 3% inflation is 4% it's a free 4 grand. Just for letting the money sit.
Randummm (1 year ago)
This is John Oliver's worst sketch comedy ever.
chachee15 (1 year ago)
where are you going to find 5% interest?
Abade (1 year ago)
This is actually the reason why the rich can only become richier over the years, if you doubt it go and play with a compund interest calculator.
Ransom Locke (1 year ago)
did you say reinvest dividends?there is NO return on dividends.
Audio book (1 year ago)
I think this man is really mad. he does not know anything about economic system. what would u think if a thing u t getting right now at 5 will u get the same price after 30 or 40 years . not at all it may cost you may be 30 or 50 doller.
Ms. E (1 year ago)
any angel investors?
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rhys wagstaff (1 year ago)
Where does inflation and the fact the money could be invested elsewhere come into it?
Dusan Veselka (1 year ago)
who gives you 5% interest? Ive got 0.4% at the mo on my saving account at Barclays and its not different anywhere else...
mikha007 (1 year ago)
i couldn't follow his calcs after 7%....anybody?
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I feel lazy for watching this ... Seriously I am not lazy though ... I just know I cannot out work capital. lol
satthar abdul (1 year ago)
Thank you Sir. ... Great content. .. and love the accent (British) :)
Matt C (1 year ago)
Um... "how compound interest works"... wtf? Please choose a more realistic title.
Ron Jeremy (1 year ago)
there's no lazy way to get rich. It takes hard work and self improvement. Also real rates of return much? most savings accounts are less than rates of inflation. bond market returns are currently priced for negative real interest rates [(1 + ytm )/ (1 + inflation rate)]
Michael (1 year ago)
If I was lazy and had some money to invest I'd invest it in becoming not lazy. Best investment you could make.
Chilly Willy (1 year ago)
Yeah, yeah, yeah, but where do I get 10% interest?
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Riichi Kosher (1 year ago)
RIP interest rates! >.<
Eric Daub (1 year ago)
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Yew Ow (1 year ago)
Except when negative interest rates gets applied, then you're compounding your way to bankruptcy.
John Andrews (1 year ago)
Problem: banks only pay about 3% interest. Also bank fees usually take any interest you earn especially on small investments. And as he said he didn't account for inflation, which generally equals roughly what your interest is.
Nathanial Arias (1 year ago)
I've known about the power of compounding for a while now, but I always find myself rewatching these videos for entertainment value!
Luca C'è (1 year ago)
Very nice video! But let me say that 5% a year is a very high interest rate actually...
Mahmoud Zalt (1 year ago)
No, never do that. This guy probably works for the banks.
bigbullbk (1 year ago)
I opened up a 10k savings today and I plan on putting 1-150 a week and watch it grow slowly but surely.
Jay Jay (1 year ago)
Unrealistic returns, you cannot get 5% even less 10% without risking your capital.
Free Surfer (1 year ago)
who is dumb enough to offer compound interest anymore?
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Harry Gainham (1 year ago)
It's not a lazy way to make money it's just a long process. who wouldn't want a large tax free income just as they retire. to overcome the inflation problem you just increase your monthly or yearly deposits with the rate of inflation. also the numbers he uses asare small. You can currently put £20000 into a stocks and shares ISA a year so if you can achieve that or build up to it as your salary increases over say 40 years...your pot would be worth several million pounds and you could draw down a tax free income around the 100k Mark ( or what ever the inflation adjusted value of that would be). You don't need 10% growth year for 40 years...that's unrealistic, an average of 5% will still allow compounding to effect your pot. Finally this is something on the side you could do to ensure financial freedom/security for you and your children...something to supplement property investment etc. The it to start early and not touch it until compounding starts to shoot the value of your pot up.
Galli Nold (1 year ago)
So how can i make 1.000.000 ?
David Carson (1 year ago)
invest in index funds and put as much as possible in IRA/401K every years, and put as much as possible in index funds on the taxable side
Stuart123666 (1 year ago)
Yep. Inflation is only 2-3% per year though. This beats inflation by a mile. It'll still be a lot
gblueslover2 (1 year ago)
Stuart123666 Thing is, 40 years *from now,* 1 million will not be what it is today...Think about that !
Stuart123666 (1 year ago)
£1000 a month for 22 years will equal just under £1M. or £100 a month for 40 years. Google compound interest calculator. S&P 500 index currently has an average return of 10%. You can invest in an index tracker fund with your favourite bank or investment platform.
Cody Himes (1 year ago)
you can't find an investment that pays out 10% steadily
Sal Paradise (1 year ago)
it doesn't help those us stuck in slave 9 to five where all the money goes to living and eating. NO savings or 401K. Most people don't have corporate jobs,.
EinSofVirtuoso (1 year ago)
Jokes on us, those interest rates are unrealistic.
Crypto BR (1 year ago)
....and than you die at age 60 and all the saved money is at the bank.... Invest in crypto currencies if you want to make crazy 10 x 100 x of money invested money within 10 years.. and still be at the age you can enjoy it. No better way to earn money in the lazy way.
David van Leerdam (1 year ago)
It's always a good idea to start thinking and acting like this from age 14 on. However, keep in mind that assumptions are made in the video. It assumes positive (not to say substantial) interest rates and assumes that your saved money is indeed safe. Also, keep in mind that the world can change a lot in a lifetime.
Thsiscool (1 year ago)
But what bank would give me 5% compound interest these days? At most, from the banks that I've seen, they're only giving out 1.00-1.50% compound interest. Not very much... :/
shock80ey (1 year ago)
How does it work if you are investing in common stock? Only with dividends?
Maffoo (1 year ago)
Are we talking about £100 a month plus 7% annually or £100 a month plus 7%/12 monthly? Because they result in different values and either way I can't get your exact result when doing it in Excel. Close, but no cigar.
Felix Reali (1 year ago)
love your videos. so concise, great info and funny :-)))
J ohn H (1 year ago)
A good tutorial but this simply won't work, who would give you an interest rate of 5% on the second year.....ive got a 5% account but nowadays they are only one year deals.....so a waste of time, only way to make money is good old fashioned hard graft. End of.
carlos mendoza (1 year ago)
In the US the bank only gives you 1% not worth investing in. The Banks use our money for loans and depending on the persons credit the bank makes 3% up to 18% plus there fees onn that person to only give us back 1% a year. No thank you I rather invest in better things than the bank.
TheMidVids (1 year ago)
A lot of negative comments about not finding stocks that are strong enough to earn 10% interest rate. There are plenty out there. Join a Facebook group that trades stocks and get suggestions. Do some research and you'll be surprised as to what you find. That's how I did it. Love the video, cheers!
jonathan bell (1 year ago)
Nespresso is shit
Sergen Aytug (1 year ago)
Trade your own money, you can earn between 1-10% p.m easy if you know what you are doing. Banks offer you zero.
Ronald Brumwell (1 year ago)
In this economic climate it is very hard to do with negative interest rates, but times do change. For the moment bitcoin is at about 200% ROI for the year and Monero is at 300% ROI over 2 months and look like going higher not government manipulation or interference. This year gold, silver, zinc, copper, uranium and cobalt should also do well.
steve meadows (1 year ago)
That sounds great, oh wait, I cant find a bank that does 10%. In fact all our banks in Aus are bellow inflation, CRAP!!!
nick (1 year ago)
you're lucky to get %3 interest rate
Enrique Pablo (10 months ago)
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jason s (1 year ago)
its actually beyond easy if you do only a little bit of research. 10-20% is very achievable if you know where to put your money
TheMidVids (1 year ago)
Nicky Halpin I have no idea what that means
nick (1 year ago)
yeah and i bet ur with fairygodmotherbanks arent you
TheMidVids (1 year ago)
Nicky Halpin Not true, I invested in two stocks last year and my growth for each was 20% on one and 17% on another. Just do some digging.
abialo2010 (1 year ago)
lets see your portfolio if this actually worked. you cant find investments that will give back 5% anymore. its 2016 not 1960
tom merchant (2 months ago)
Haha, it's easy to find bonds that pay 6% and it's also pretty easy to find 10% returns if you look hard enough.
Joe Elyahchouchi (3 months ago)
Crypto is gambling not investing. Highest ROI I have seen so far is around 10% a year on Lebanese government bonds. The currency has been tied to the dollar for 30 years now and still standing, and they pay 10% (and sometimes up to 15%)interest a year on bonds. The downside is it is a shit country with an ever growing budget deficit xD It is important when examining a government bond to assess 2 kinds of risk: risk of default and risk of currency devaluation (because often the bond you buy is in their currency) In currency devaluation they just lower the value of the money then pay you back, and you end up with a lot of worthless paper. Who has a better idea?
mcallen bell (6 months ago)
Leveraged crypto sounds like a great way to lose thousands in a couple hours..Kind of a big dice roll
mcallen bell (6 months ago)
Oil Derivatives are showing annual returns in the 100's of percentages, and just following the S+P with an index ETF should get you about 13% last year.
there are, amazon forests pay 7 per year
Boyd Bros. (1 year ago)
actually this does not work in a rigged system where "they" control the table, sweep the pot and get bailed out. 2007-2008 is all the proof anyone needs.
Boyd Bros. lol very true. to win you have to have advanced inside knowledge
Kenneth Lam (1 year ago)
It is just math 101. Nothing related to get rich
GarrettB675 (1 year ago)
10%?? Where? How?
Ntim Domfeh (1 year ago)
Thank you Tim
Trigger Trader (1 year ago)
I love the way how you speak. Explained clearly.
Kparker1ful (1 year ago)
10% interest haha
Luka Henigman (1 year ago)
kparker1ful Banks at this moment won't give you that, but P2P lending is closer to 7-10% annual ROI.
Theresa Kidd (1 year ago)
What about having to pay taxes on the interest?
Taylor Wright (1 year ago)
@moneyweek - I'm a young entrepreneur (15)yrs old in fact. Willing to learn more about money/investing. I must say your content is very knowledgeable and I enjoy to learn from this much. Keep up the good videos! Good health.
Darren Tremblay (1 year ago)
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Jairus (1 year ago)
stfu
Oliver Elino (1 year ago)
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Joost Kamphuis (2 years ago)
Still you need to educate yourself first. That means watching countless hours of youtube vids. Reading books. Getting your phsychology in order. If you invest like 100,- the cost to invest it will be like 2-5% of the amount you invest.(not counting inflation). So compounding takes a lot of time. So you need larger amounts of money, and your investments must have a good divident too. But the main idea is ok. I use it to in my investments. So talk to me in 10 years. My aim is to have a house with no morgage.
This is a Good Video.
Good old Savings for Ten Years is the way to Go then of Course Equities and Mutual Funds are the Way to Go. I prayerfully encourage Young People to invest high money for Prosperty by 2030. Invest from 100 Pounds.I started from 5 to 9 Pounds Sterlings.Cheerios to the English Speaking World.Anglo Saxon System.

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