"$1 Million is Closer Than You Think"

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Taylor Larimore
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"$1 Million is Closer Than You Think"

Post by Taylor Larimore »

Bogleheads:

Unusual advertisement in the New York Times by Vanguard:

$1 Million is Closer Than You Think

Your thoughts?

Best wishes.
Taylor
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Re: "$1 Million is Closer Than You Think"

Post by goblue100 »

It is an interesting approach, sort of an ad and financial planning tool in one. I've noticed this phrase a lot on the Vanguard website and in ads:
"Investors who stay the course tend to keep more of their returns."

Do you think that is a coincidence or a reaction to that phrase being used so much here?
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Re: "$1 Million is Closer Than You Think"

Post by baw703916 »

I liked the descriptions of the various probabilities of getting to $1 million!

"Those are the odds that a celebrity marriage will last a lifetime" really does motivate you to boost your savings rate!

:)
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Re: "$1 Million is Closer Than You Think"

Post by alpine_boglehead »

It seems like they've heard beebog say this the other day (regarding gamification proposition by BlackRock CEO), proving once again that they are the vanguard :)
beebog wrote: Sun Nov 05, 2017 7:42 am On the other hand, someone like Vanguard or Bogleheads could create an app that rewards you for fully funding a Roth, qualifying for Admiral shares, rebalancing your portfolio, etc.
Promoting good investor behavior this way doesn't seem the worst idea (and it's fun, I have the "same odds that an American believes in ghosts") . It's a bit strange though that Vanguard (which currently seems to have torrents of money gushing in) is pushing for customers via advertorials.

The "stay the course", "keep costs low" direction is fine. The "x % probability" approach is a bit misleading, though, in my opinion. It fosters the impression that these numbers can actually be calculated precisely forward-looking, which is contradicts another Bogle mantra: "Nobody knows nothing".
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Re: "$1 Million is Closer Than You Think"

Post by TheHouse7 »

I don't like it. How can it tell I have a 63% chance of becoming a millionaire by 50. Chance of divorce? :|
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JoMoney
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Re: "$1 Million is Closer Than You Think"

Post by JoMoney »

I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
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iceport
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Re: "$1 Million is Closer Than You Think"

Post by iceport »

JoMoney wrote: Tue Nov 07, 2017 3:20 am I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
Are you sure it didn't say a 95+% chance, written out as "an over 95% chance," which would be correct?
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Re: "$1 Million is Closer Than You Think"

Post by mrc »

Jan 2007: $1,100,000 5 years => 95%+
What???
July 2008: $650,000
Oh.

I like the pages for folks that don't think much about retirement planning. I know people that don't read BH books, don't lurk on this site, and think "investing" is hard. So they put it off. This could help some of them to at least get started.
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Re: "$1 Million is Closer Than You Think"

Post by digarei »

JoMoney wrote: Tue Nov 07, 2017 3:20 am I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
Yeah. If you input $1,000,000 Saved with a target of reaching the same amount in 10 Years ... it suggests an 85% probability.

Hmmmm. This interactive ad would benefit from some data validation. :|
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Re: "$1 Million is Closer Than You Think"

Post by mmcmonster »

alpine_boglehead wrote: Mon Nov 06, 2017 11:53 pm It seems like they've heard beebog say this the other day (regarding gamification proposition by BlackRock CEO), proving once again that they are the vanguard :)
I gamify it all the time. I set mini goals that keep me on my path.

Current goals include keep adding money in a manner such that I am within 2% of my desired asset allocation, reaching my next big total milestone by the end of the year, hit a smaller milestone for my taxable account, etc.

It gives me something to focus on in an otherwise boring portfolio. :beer
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Re: "$1 Million is Closer Than You Think"

Post by obafgkm »

JoMoney wrote: Tue Nov 07, 2017 3:20 am I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
digarei wrote: Tue Nov 07, 2017 4:54 am Yeah. If you input $1,000,000 Saved with a target of reaching the same amount in 10 Years ... it suggests an 85% probability.

Hmmmm. This interactive ad would benefit from some data validation. :|
Well, there is a chance that the market could go down and you may not have $1,000,000. Yeah, that's what Vanguard is saying :P .
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Re: "$1 Million is Closer Than You Think"

Post by bertilak »

An innovative and, I believe, effective advertisement!

I think it deserves a sub-title: $1 Million isn't as much as you think! A million used to be a LOT of money -- yacht-buying territory. Now its is ALMOST enough to retire on.
JoMoney wrote: Tue Nov 07, 2017 3:20 am I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
Perhaps 95% is the right answer. What if Market takes a 2008-2009 path within that 5 years? Is there a 5% chance of that?
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Re: "$1 Million is Closer Than You Think"

Post by JoMoney »

bertilak wrote: Tue Nov 07, 2017 5:32 am An innovative and, I believe, effective advertisement!

I think it deserves a sub-title: $1 Million isn't as much as you think! A million used to be a LOT of money -- yacht-buying territory. Now its is ALMOST enough to retire on.
JoMoney wrote: Tue Nov 07, 2017 3:20 am I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
Perhaps 95% is the right answer. What if Market takes a 2008-2009 path within that 5 years? Is there a 5% chance of that?
A 5% chance of a 2008-2009 maybe... but based on the figure I put in, it would be even more severe, and they're claiming a 95%+ chance of that.... without even knowing what it was invested in. Look out! :shock:
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Re: "$1 Million is Closer Than You Think"

Post by TheHouse7 »

JoMoney wrote: Tue Nov 07, 2017 5:37 am
bertilak wrote: Tue Nov 07, 2017 5:32 am An innovative and, I believe, effective advertisement!

I think it deserves a sub-title: $1 Million isn't as much as you think! A million used to be a LOT of money -- yacht-buying territory. Now its is ALMOST enough to retire on.
JoMoney wrote: Tue Nov 07, 2017 3:20 am I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
Perhaps 95% is the right answer. What if Market takes a 2008-2009 path within that 5 years? Is there a 5% chance of that?
A 5% chance of a 2008-2009 maybe... but based on the figure I put in, it would be even more severe, and they're claiming a 95%+ chance of that.... without even knowing what it was invested in. Look out! :shock:
Lol 1mil in TIPs
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Re: "$1 Million is Closer Than You Think"

Post by bertilak »

JoMoney wrote: Tue Nov 07, 2017 5:37 am A 5% chance of a 2008-2009 maybe... but based on the figure I put in, it would be even more severe, and they're claiming a 95%+ chance of that.... without even knowing what it was invested in. Look out! :shock:
Thus my "perhaps."
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Re: "$1 Million is Closer Than You Think"

Post by DarthSage »

To be fair on the "already have 7 figures" thing--they could be looking at the probability that you'll have some kind of catastrophe--not just a market crash, but the odds of a messy divorce, expensive illness, huge lawsuit/judgement, that sort of thing. I know we all hope for the best and plan for the worst, but crap happens--businesses fail, accidents happen, and so forth.
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Re: "$1 Million is Closer Than You Think"

Post by RadAudit »

bertilak wrote: Tue Nov 07, 2017 5:32 am I think it deserves a sub-title: $1 Million isn't as much as you think! A million used to be a LOT of money -- yacht-buying territory. Now its is ALMOST enough to retire on.
Yogi Berra said it so well so many years ago - A nickel ain't worth a dime anymore.

About 8 years ago - and for the 30 years before that -, the accepted wisdom around my office was that with SS and a small pension, you could do OK in retirement with $1 million in an IRA. Now, in this community, the numbers floating about are $2 and $3 mil.

Projected SWRs have dropped from 4% ($40k on $1 mil) to 3%. Still, there are a lot of people in this world who would think they had arrived if they had an inflation indexed income of $30k or $40k per year, yacht or no yacht. I try to remember that when the conversation goes off in to target areas that I doubt I'll ever get to.
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Re: "$1 Million is Closer Than You Think"

Post by iceport »

JoMoney wrote: Tue Nov 07, 2017 5:37 am
bertilak wrote: Tue Nov 07, 2017 5:32 am An innovative and, I believe, effective advertisement!

I think it deserves a sub-title: $1 Million isn't as much as you think! A million used to be a LOT of money -- yacht-buying territory. Now its is ALMOST enough to retire on.
JoMoney wrote: Tue Nov 07, 2017 3:20 am I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years :shock:
Perhaps 95% is the right answer. What if Market takes a 2008-2009 path within that 5 years? Is there a 5% chance of that?
A 5% chance of a 2008-2009 maybe... but based on the figure I put in, it would be even more severe, and they're claiming a 95%+ chance of that.... without even knowing what it was invested in. Look out! :shock:
It appears that all probabilities in excess of 95% are reported as "95+%" and "an over 95% chance." (Financial Engines does the same thing in their retirement income forecasting.) Are not a 99% chance and a 100% chance both included in "an over 95% chance?" Seems like the ad is giving reasonable results to me, unless I'm misunderstanding your point.
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Re: "$1 Million is Closer Than You Think"

Post by Eric76 »

Cute gimmick, but without information on asset allocation, it's as useful as a screen door on a submarine.
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Re: "$1 Million is Closer Than You Think"

Post by lostdog »

Remember that 70% of Americans live paycheck to paycheck and are in the red. 1 million dollars may seem silly to bogleheads but it's not to the average American.
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Re: "$1 Million is Closer Than You Think"

Post by Jack FFR1846 »

They need to make some simple code changes such that, for example, my $2.2MM doesn't keep at a 95%+ but instead says.....perhaps....."You've won the game getting to over $1MM. What's your next goal?" and allow a new goal to be set. I'd like to hit $3MM before I retire.
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Re: "$1 Million is Closer Than You Think"

Post by fantasytensai »

Taylor Larimore wrote: Mon Nov 06, 2017 10:18 pm Bogleheads:

Unusual advertisement in the New York Times by Vanguard:

$1 Million is Closer Than You Think

Your thoughts?

Best wishes.
Taylor
You know how to make $1 million bucks? Learn graphic design and design that webpage for Vanguard. It was really catchy!
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Re: "$1 Million is Closer Than You Think"

Post by Pajamas »

The graphics were literally dizzying! :twisted:
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Re: "$1 Million is Closer Than You Think"

Post by AntsOnTheMarch »

It seems there is no higher answer than 95+% no matter what you enter. It’s probably designed for the average a American who thinks having $1M = Thurston Howell, III. So they probably saw no reason to account for someone entering $1M+. Probably bogleheads playing around with it are going to mess up there algorithms. :confused
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Re: "$1 Million is Closer Than You Think"

Post by staythecourse »

I like what they are trying to do, but wonder if it will get the job done. Personally, the best way to get folks to invest is simply make a law where investing in your 401k is automatic unless you opt out. I believe when the started offering that option 401k enrollment went up considerably. The best way to get folks to help themselves is actually taking the power right out of their hands (counter intuitive). Folks won't miss the money they never get a chance to spend.

I think in the end it isn't like folks don't want to make a million, but it is just too much thinking (in their opinion) to do it. Asking folks to look through funds can be overwhelming.

Good luck.
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Re: "$1 Million is Closer Than You Think"

Post by goingup »

Terrific message from Vanguard--in essence:
*You can accrue wealth by long-term planning instead of chasing short-term fads
*Use investing principles to set goals.
*Make small changes to increase contributions.
*Pay attention to costs.
*Stay the course and don't react with emotion.
*Stay focused on real-life goals.
The ad was eye-catching and interactive which probably has wide appeal.

Contrast the message to other ads that blinked on Yahoo Finance page this morning:
Fidelity:
Always be finding trading opportunities. Get 500 free trades. Fidelity Trades $4.95
TD Ameritrade:
Keep Calm. Trade On. #1 Mobile Trading App

There is a marked difference in culture at Vanguard and I think it's smart to highlight that.
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Re: "$1 Million is Closer Than You Think"

Post by staythecourse »

fantasytensai wrote: Tue Nov 07, 2017 8:53 am
You know how to make $1 million bucks? Learn graphic design and design that webpage for Vanguard. It was really catchy!
Catchy yes, but too distracting. After seeing the advertisement I remember the graphics more then the message. Not useful.

Good luck.
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Re: "$1 Million is Closer Than You Think"

Post by bertilak »

staythecourse wrote: Tue Nov 07, 2017 8:58 am
Catchy yes, but too distracting. After seeing the advertisement I remember the graphics more then the message. Not useful.

Good luck.
They don't care if you remember the surface message, but they want you to remember the deep message "Vanguard is cool and, with their help, you can do it!"

I think the ad will succeed at that level.

(Do kids these days still say "cool?" What about "rad?" Perhaps we should take the way-back machine to "gnarly," "groovy," "neat," or "hip!!" We can rule out "bitchin" and "the bee's knees" is probably too far back -- but I like it.)
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Re: "$1 Million is Closer Than You Think"

Post by lazydavid »

Starting point $912,000, chances of reaching $1M in 5 years: 64%
Starting point $913,000, chances of reaching $1M in 5 years: 95%+

I guess every little bit DOES matter!
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Re: "$1 Million is Closer Than You Think"

Post by EyeYield »

I was really interested in reading the link that was provided, but I totally misinterpreted the meaning of the title of this thread.

I thought it would link me to an article that explained that $1 Million is Closer Than You think --- to Being Enough.

That would be interesting.
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Re: "$1 Million is Closer Than You Think"

Post by Texanbybirth »

According to my inputs (today's actuals), I have the same chance of reaching $1MM as I do the probability that I will eat a slice of pizza this month. Since that is 100% (my non-celebrity-married spouse and I share a love for this divinely-inspired food), I'm feeling pretty good about retirement! :beer :moneybag :dollar

Thanks for the morale boost this morning!!!
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Re: "$1 Million is Closer Than You Think"

Post by staythecourse »

bertilak wrote: Tue Nov 07, 2017 9:16 am
staythecourse wrote: Tue Nov 07, 2017 8:58 am
Catchy yes, but too distracting. After seeing the advertisement I remember the graphics more then the message. Not useful.

Good luck.
They don't care if you remember the surface message, but they want you to remember the deep message "Vanguard is cool and, with their help, you can do it!"

I think the ad will succeed at that level.

(Do kids these days still say "cool?" What about "rad?" Perhaps we should take the way-back machine to "gnarly," "groovy," "neat," or "hip!!" We can rule out "bitchin" and "the bee's knees" is probably too far back -- but I like it.)
I agree with that, but do you think the graphics are that "cool" to remember. I am not a tech person and have already forgotten the graphics.

Good luck.
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Re: "$1 Million is Closer Than You Think"

Post by bertilak »

staythecourse wrote: Tue Nov 07, 2017 11:11 am
bertilak wrote: Tue Nov 07, 2017 9:16 am
staythecourse wrote: Tue Nov 07, 2017 8:58 am
Catchy yes, but too distracting. After seeing the advertisement I remember the graphics more then the message. Not useful.

Good luck.
They don't care if you remember the surface message, but they want you to remember the deep message "Vanguard is cool and, with their help, you can do it!"

I think the ad will succeed at that level.

(Do kids these days still say "cool?" What about "rad?" Perhaps we should take the way-back machine to "gnarly," "groovy," "neat," or "hip!!" We can rule out "bitchin" and "the bee's knees" is probably too far back -- but I like it.)
I agree with that, but do you think the graphics are that "cool" to remember. I am not a tech person and have already forgotten the graphics.

Good luck.
I guess I wasn't clear. Remembering the specifics (words, numbers, graphics) is not important. They want you to remember TWO things: your (hopefully positive) impression and the association of that impression with the name Vanguard.
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Re: "$1 Million is Closer Than You Think"

Post by iceport »

bertilak wrote: Tue Nov 07, 2017 11:23 am
staythecourse wrote: Tue Nov 07, 2017 11:11 am
bertilak wrote: Tue Nov 07, 2017 9:16 am
staythecourse wrote: Tue Nov 07, 2017 8:58 am
Catchy yes, but too distracting. After seeing the advertisement I remember the graphics more then the message. Not useful.

Good luck.
They don't care if you remember the surface message, but they want you to remember the deep message "Vanguard is cool and, with their help, you can do it!"

I think the ad will succeed at that level.

(Do kids these days still say "cool?" What about "rad?" Perhaps we should take the way-back machine to "gnarly," "groovy," "neat," or "hip!!" We can rule out "bitchin" and "the bee's knees" is probably too far back -- but I like it.)
I agree with that, but do you think the graphics are that "cool" to remember. I am not a tech person and have already forgotten the graphics.

Good luck.
I guess I wasn't clear. Remembering the specifics (words, numbers, graphics) is not important. They want you to remember TWO things: your (hopefully positive) impression and the association of that impression with the name Vanguard.
Actually, I would hope there is another critical message conveyed by the interactive ad: That it actually is possible to build a million dollar nest egg without super-human abilities. That's the message I wish I had heard when I was younger, and it's one I've heard over and over again from many others who, like me, started saving in earnest (with purpose) late. It isn't a stretch to think that lots of folks feel so far behind they just give up any hope of building meaningful savings. A playful graphic tool like this can help to break down the endeavor into more manageable steps.

I think the ad is awesome!

My only criticism is that it's too sprawling. It doesn't track the effects of each incremental factor, so we are left trying to remember how much difference each one made. Otherwise, it's super creative, interesting, and from what I can tell, reasonably accurate.
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Re: "$1 Million is Closer Than You Think"

Post by bligh »

iceport wrote: Tue Nov 07, 2017 11:42 am Actually, I would hope there is another critical message conveyed by the interactive ad: That it actually is possible to build a million dollar nest egg without super-human abilities. That's the message I wish I had heard when I was younger, and it's one I've heard over and over again from many others who, like me, started saving in earnest (with purpose) late. It isn't a stretch to think that lots of folks feel so far behind they just give up any hope of building meaningful savings. A playful graphic tool like this can help to break down the endeavor into more manageable steps.
+1

I wish I known this when I was younger. By nature, I was mostly good at saving money, but I didn't really focus on it.. until I noticed that the pile had got to a size where I could see a light at the end of the tunnel. This got me more motivated and the pile started to grow much faster as a result. I could easily see myself being 2-4 years ahead of where I am (in terms of FI goals) had I had the wisdom of this forum even 10 years ago, let alone when I graduated from university.

I think the closest thing to an "Aha!" tool for young people coming out of college is the Early retirement calculator at networthify. That is why you see so many young people gravitate to the MMM style of FI. It shows you a light at the end of the tunnel, and the tunnel doesn't look as long, dark and arduous. Hopefully by the time they reach the age where they were planning to go FIRE they also see that they might have a little further to go, but thanks to their early start, frugal lifestyle and diligent savings, they are so far along their path already that they only need to take a few more steps to complete the job.
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Re: "$1 Million is Closer Than You Think"

Post by iceport »

bligh wrote: Tue Nov 07, 2017 11:54 am
iceport wrote: Tue Nov 07, 2017 11:42 am Actually, I would hope there is another critical message conveyed by the interactive ad: That it actually is possible to build a million dollar nest egg without super-human abilities. That's the message I wish I had heard when I was younger, and it's one I've heard over and over again from many others who, like me, started saving in earnest (with purpose) late. It isn't a stretch to think that lots of folks feel so far behind they just give up any hope of building meaningful savings. A playful graphic tool like this can help to break down the endeavor into more manageable steps.
+1

I wish I known this when I was younger. By nature, I was mostly good at saving money, but I didn't really focus on it.. until I noticed that the pile had got to a size where I could see a light at the end of the tunnel. This got me more motivated and the pile started to grow much faster as a result. I could easily see myself being 2-4 years ahead of where I am (in terms of FI goals) had I had the wisdom of this forum even 10 years ago, let alone when I graduated from university.
Yes! Exactly the same for me!
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Re: "$1 Million is Closer Than You Think"

Post by itstoomuch »

Slim.
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Re: "$1 Million is Closer Than You Think"

Post by bertilak »

goblue100 wrote: Mon Nov 06, 2017 10:34 pm It is an interesting approach, sort of an ad and financial planning tool in one. I've noticed this phrase a lot on the Vanguard website and in ads:
"Investors who stay the course tend to keep more of their returns."

Do you think that is a coincidence or a reaction to that phrase being used so much here?
The phrase comes from John Boggle, who, I have heard, has had some influence over both Vanguard and this website so perhaps there was a common origin. :D
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LiterallyIronic
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Re: "$1 Million is Closer Than You Think"

Post by LiterallyIronic »

16% chance by 50. 82% chance by 60. Substantial jump.
H-Town
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Re: "$1 Million is Closer Than You Think"

Post by H-Town »

Taylor Larimore wrote: Mon Nov 06, 2017 10:18 pm Bogleheads:

Unusual advertisement in the New York Times by Vanguard:

$1 Million is Closer Than You Think

Your thoughts?

Best wishes.
Taylor
It sounds like a marketing soundbite. $1 million is nowhere closer if you don't save. The ads should include the power of compound interest and the importance of saving right now. It'd encourage people to save more.
Time is the ultimate currency.
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mickeyd
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Re: "$1 Million is Closer Than You Think"

Post by mickeyd »

I'd like to see an ad for how simple it is to acquire a $2M balance once you arrive at $1M.
Last edited by mickeyd on Tue Nov 07, 2017 1:27 pm, edited 1 time in total.
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Noobvestor
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Re: "$1 Million is Closer Than You Think"

Post by Noobvestor »

'Apply the Vanguard Difference' and 'How do you prefer to invest' both changed things by only a few percent, which I found disappointing from the perspective of this being a tool to get more people to see the light (i.e. as someone who wants Vanguard marketing to work).
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Portfolio7
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Re: "$1 Million is Closer Than You Think"

Post by Portfolio7 »

iceport wrote: Tue Nov 07, 2017 12:00 pm
bligh wrote: Tue Nov 07, 2017 11:54 am
iceport wrote: Tue Nov 07, 2017 11:42 am Actually, I would hope there is another critical message conveyed by the interactive ad: That it actually is possible to build a million dollar nest egg without super-human abilities. That's the message I wish I had heard when I was younger, and it's one I've heard over and over again from many others who, like me, started saving in earnest (with purpose) late. It isn't a stretch to think that lots of folks feel so far behind they just give up any hope of building meaningful savings. A playful graphic tool like this can help to break down the endeavor into more manageable steps.
+1

I wish I known this when I was younger. By nature, I was mostly good at saving money, but I didn't really focus on it.. until I noticed that the pile had got to a size where I could see a light at the end of the tunnel. This got me more motivated and the pile started to grow much faster as a result. I could easily see myself being 2-4 years ahead of where I am (in terms of FI goals) had I had the wisdom of this forum even 10 years ago, let alone when I graduated from university.
Yes! Exactly the same for me!
Likewise! Younger me didn't appreciate how much older me would really like to be financially independent at age 50. So we had kids and went on with our lives. Going back, I'd still have kids(!) but there is so much we could have done differently then that would have put us much closer to FI at this point.
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BlackStrat
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Re: "$1 Million is Closer Than You Think"

Post by BlackStrat »

It's a start and an attention grabber. For someone who doesn't have it, $1mil probably seems to be a lofty goal and this ad helps them realize it's actually doable. After they reach it, they may start researching SWR's and realize $1mil isn't what it used to be, but as they say the first million is the hardest.
I think it's a positive approach and see nothing wrong with something designed to grab people's interest and give them hope and a blueprint for financial success.
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Re: "$1 Million is Closer Than You Think"

Post by azanon »

I didn't try to figure out exactly what rate of return it's using, but it must be ridiculously low. I found it to be useless.
venkman
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Re: "$1 Million is Closer Than You Think"

Post by venkman »

They should include a part that shows how much faster your money will grow if your investment company doesn't spend it on advertising... :D
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Re: "$1 Million is Closer Than You Think"

Post by JoMoney »

venkman wrote: Wed Nov 08, 2017 9:39 pm They should include a part that shows how much faster your money will grow if your investment company doesn't spend it on advertising... :D
Advertising brings in more money to funds, which makes (some of) the costs lower when distributed across all the assets under management, and since Vanguard funds are run at cost it leads to lower expense ratios.
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Veiled
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Re: "$1 Million is Closer Than You Think"

Post by Veiled »

venkman wrote: Wed Nov 08, 2017 9:39 pm They should include a part that shows how much faster your money will grow if your investment company doesn't spend it on advertising... :D
I think about this every time I see a VG ad. I seem to be seeing more of them (happily, good ones like this) lately, and I feel a strange happiness mixed with being irked. What will happen to my gloriously low ERs if I'm paying graphic designers? :wink:
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Re: "$1 Million is Closer Than You Think"

Post by venkman »

JoMoney wrote: Wed Nov 08, 2017 10:28 pm
venkman wrote: Wed Nov 08, 2017 9:39 pm They should include a part that shows how much faster your money will grow if your investment company doesn't spend it on advertising... :D
Advertising brings in more money to funds, which makes (some of) the costs lower when distributed across all the assets under management, and since Vanguard funds are run at cost it leads to lower expense ratios.
True, but how much more economy of scale can VG realistically squeeze out?

ER for VTSAX is at .04; the difference between that and no ER at all is almost insignificant.
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Re: "$1 Million is Closer Than You Think"

Post by book lover »

Great advertisement to attract people's attention. It's sad that many people believe that the only way to a million dollars is by winning a lottery.
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