1) Do you want to retire a millionaire? Then let me show you how important it is to save money and make regular additions to your investment account

Starting with a baseline case of an investor with 25,000$ and making a 1% a month rate of return

Not bad, but we can do better
Now the same 25,000$ and the same 1% a month return, but this time the investor adds 300$ a month to the account

Now they'll have over 1 million 25 years later, and the additions were only 90,000 along the way

We're starting to see the power of compounding, but let's keep going
Now the investor is a diligent saver and manages to sock away 1,000$ a month to the account

25 years later they now have over 2.3 million. Of course 300,000$ of that is what they added themselves, but the raw gain after additions is now 5x more than the baseline
Finally, through hard work and a good income they can now (or together with a spouse) save 3,000$ a month

This person (or couple) will now have over 6 million in retirement.

That's the power of compounding!
Every dollar added to an investment account also compounds at that rate going forward. It's a one two punch and it really starts to amplify the long term results.

Who knows if Einstein actually said this, but whoever did, they're absolutely right!
If you want to have success long-term:

1) Work hard and get a stable income
2) Live below your means and save money
3) Get a consistent and realistic rate of return

No chasing shiny objects, no taking on massive risk. Just consistent forward progress!
YOUR job is the first two. Work hard, get your income right, live below your means so you can add money regularly

MY job is the last one, to help you get a consistent long-term rate of return that allows you to reach your goals. I target drawdown reduction as my main weapon
Most investors assume to retire a multi-millionaire you need to chase some exorbitantly high rate of return. They assume people who have 5-10 million dollars in retirement must have been an early investor in Amazon, or maybe they were a high paid surgeon, or lottery winner...
Or maybe... It's just someone who had a good job, lived below their means, made a consistent rate of return by minimizing portfolio drawdowns, and consistently added a few thousand dollars to their investment account?

You can do it too!


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More from @VolatilityVIX

10 Jun
With the $VIX currently around 17, some would argue it's getting low. Some may even be tempted to start buying things like $VXX and $UVXY in anticipation of the next #volatility spike (I can't say don't, but... don't)

But is a VIX of 17 actually below average?
With the long term VIX "mean" of 19.46, it seems pretty clear we're well below average right now.

Mean: The average of a set of numbers. You just add the values up, divide by the # of values, and that's the mean.

Example: 3, 3, 4, 6, 9

Mean = (3 + 3 + 4 + 6 + 9) / 25 = 5
But we could argue that the "Median" is more useful.

Median: The middle number in a series of numbers

In our example, the median of 3, 3, 4, 6, 9 = 4

The Long-term Median of the VIX is 17.44
Read 9 tweets

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