Today I’ve got a lot to share: my recent trip to Western, new educational tables from Daryl Bahls, a must-read article by Ben Carlson, a fantastic free resource called Rebel Finance, and some takeaways from the latest Bogleheads meeting.
00:48 Trip to Western: Teaching, Presenting, and Giving Back
It’s been a wonderful week. I spent two full days at Western, presenting to seniors about to graduate, to faculty and staff, and to a personal finance class. I also had a fantastic hour with the Financial Management Association Club. These students were fired up about their financial futures, and it was energizing to see their interest.
A big part of my visit was to help everyone—students, faculty, and staff—see how they can get involved in building financial literacy on campus. And to make things a little more exciting, I offered a $1,000 drawing for students. Whoever won could take the money with no strings attached, but I also offered to personally help them set up a Roth IRA and invest it wisely.
03:49 Daryl Bahls’ New Tables: The Power of Compound Growth
A huge thank you to Daryl Bahls, who put together some new tables for my presentations. These tables are more than just numbers—they’re a window into the power of long-term investing.
- $1000 in Roth IRA on 22nd birthday
- We looked at what happens if you invest $1,000 into a Roth IRA at age 22 and never add another dime. With assumed returns of 8%, 10%, and 12%, the results are astonishing. That $1,000 can grow to $30,000, $69,000, or even $156,000 over 45 years. But the story doesn’t stop there—after you start taking 5% withdrawals in retirement, and even after you pass it on to your heirs, the money keeps working, potentially multiplying your original investment by hundreds or even thousands of times.
- $100/mo for 45 years in Roth IRA starting on 22nd birthday
Then we explored what happens if you save $100 a month for 45 years. The numbers explode: at 8%, you end up with nearly half a million dollars; at 10%, over $900,000; at 12%, $1.7 million. And after decades of withdrawals and inheritance, the cumulative benefit can reach into the tens of millions.
One of the key lessons here is that time and consistency are your best friends. Even small amounts, given enough years and the magic of compounding, can become life-changing sums.
16:29 Lessons on Sequence of Returns
A quick but crucial side note:
- When you invest a lump sum and let it grow, the sequence of good and bad years doesn’t matter—over the long haul, but the sequence of returns is very important.
- But when you’re adding money regularly (dollar-cost averaging), the sequence does matter. Buying more shares during downturns can actually boost your long-term results, especially in volatile asset classes like small-cap value stocks.
29:14 The Importance of Financial Education
I know a lot of people, especially young folks, feel like they can’t get started with investing—maybe they think they don’t have enough money, or it’s too complicated, or they’re afraid of losing it all. These are real concerns, but they can be overcome. Sometimes you just need the right teacher, or even a preacher, to help you take that first step and keep moving forward.
One of my biggest takeaways from this week is how many young people leave school without basic money skills. That’s why I’m so passionate about the Merriman Financial Literacy Program at Western and resources like iGrad, which are now available to all graduates at no cost.
32:00 Rebel Finance: Free, Practical Education
Speaking of great teachers, I want to give a big shoutout to Alan and Katie of Rebel Finance. Thanks to an email from ChooseFI, I discovered their free 10-week course. I’ve watched their introduction and first session, and I’m impressed by how they keep things simple, interactive, and fun—even with thousands of participants tuning in live.
They cover everything from budgeting to investing to negotiating a raise, and they archive all their content on YouTube. If you or someone you know needs a practical, supportive entry point to personal finance, I highly recommend checking them out. Links are in the notes.
38:48 Ben Carlson’s Article: “On the Inevitability of Bear Markets”
I also want to spotlight an article by Ben Carlson, “On the Inevitability of Bear Markets.” Carlson lays out the odds:
- 32% chance of a bear market in any given year,
- 77% over five years,
- 95% over ten years.
But here’s the encouraging part:
The longer you stay invested, the higher your odds of seeing positive returns—100% for 20-year periods in the S&P 500. Bear markets are a fact of life, but so is long-term growth if you stay the course.
44:00 Bogleheads Meeting: Community and Sharing
This week, I also attended a local Bogleheads chapter dinner—a gathering of people who believe in index investing and lifelong learning. We swapped ideas about financial planning tools, shared stories about helping our parents and kids, and just enjoyed a sense of community.
I met a bright high school junior who’s already reading “We’re Talking Millions” and learning about investing. The future is in good hands!
And don’t forget: I’ll be speaking at the Bogleheads Conference in San Antonio this October. Alan and Katie from Rebel Finance will be there too as guests, not speakers! Check the show notes for more info.
47:09 AI in Financial Education
A quick note on the future: Artificial intelligence is changing how we learn and teach about investing. I’m using AI more and more to organize my thoughts and create better educational content. If you’re experimenting with AI in your own financial journey, I’d love to hear about your experiences. We might even do a white paper or a special episode on AI and investing soon.
48:00 Final Thoughts and Gratitude
Let me close with this:
- Start early, even if it’s just a small amount.
- Stay consistent, and let time and compounding do the heavy lifting.
- Use the resources and communities around you—whether it’s Rebel Finance, Bogleheads, or your own circle.
- Don’t let fear or complexity hold you back. The math is powerful, but the mindset is even more important.
- And if you find value in what we’re doing, please help us spread the word—like, subscribe, share, or leave a review. Every bit helps us reach more people and make a bigger impact.
Thank you for your support, your questions, and your commitment to learning. Good fortune, and happy investing!
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What Every Young Investor Should Know
