"$1 Million is Closer Than You Think"
- Taylor Larimore
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"$1 Million is Closer Than You Think"
Bogleheads:
Unusual advertisement in the New York Times by Vanguard:
$1 Million is Closer Than You Think
Your thoughts?
Best wishes.
Taylor
Unusual advertisement in the New York Times by Vanguard:
$1 Million is Closer Than You Think
Your thoughts?
Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle
Re: "$1 Million is Closer Than You Think"
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?
"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?
"Confusion has its cost" - Crosby, Stills and Nash
Re: "$1 Million is Closer Than You Think"
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!
"Those are the odds that a celebrity marriage will last a lifetime" really does motivate you to boost your savings rate!
Most of my posts assume no behavioral errors.
- alpine_boglehead
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Re: "$1 Million is Closer Than You Think"
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
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".
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".
Re: "$1 Million is Closer Than You Think"
I don't like it. How can it tell I have a 63% chance of becoming a millionaire by 50. Chance of divorce?
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.
Re: "$1 Million is Closer Than You Think"
I input a 7 figure number and it told me I had a 95% chance of having $1 million in 5 years
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
Re: "$1 Million is Closer Than You Think"
Are you sure it didn't say a 95+% chance, written out as "an over 95% chance," which would be correct?
"Discipline matters more than allocation.” |—| "In finance, if you’re certain of anything, you’re out of your mind." ─William Bernstein
Re: "$1 Million is Closer Than You Think"
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.
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.
By the time you know enough to choose a good financial adviser, you don't need one. | bogleheads.org is my advisor: The ER is 0.0% and the advice always solid.
Re: "$1 Million is Closer Than You Think"
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"
I gamify it all the time. I set mini goals that keep me on my path.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
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.
Re: "$1 Million is Closer Than You Think"
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 .
"I'm investing in stocks... chicken, beef, and vegetable. It's risky, but I know one day it'll pay off & I'll be a bouillonaire. Who knows, I might even open up a Broth IRA."
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Re: "$1 Million is Closer Than You Think"
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.
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.
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?
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Re: "$1 Million is Closer Than You Think"
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!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.
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?
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
Re: "$1 Million is Closer Than You Think"
Lol 1mil in TIPsJoMoney wrote: ↑Tue Nov 07, 2017 5:37 amA 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!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.
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?
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.
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Re: "$1 Million is Closer Than You Think"
Thus my "perhaps."
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Re: "$1 Million is Closer Than You Think"
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"
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.
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
Re: "$1 Million is Closer Than You Think"
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.JoMoney wrote: ↑Tue Nov 07, 2017 5:37 amA 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!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.
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?
"Discipline matters more than allocation.” |—| "In finance, if you’re certain of anything, you’re out of your mind." ─William Bernstein
Re: "$1 Million is Closer Than You Think"
Cute gimmick, but without information on asset allocation, it's as useful as a screen door on a submarine.
Re: "$1 Million is Closer Than You Think"
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.
Stocks-80% || Bonds-20% || VTI/VXUS/AOR
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Re: "$1 Million is Closer Than You Think"
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"
You know how to make $1 million bucks? Learn graphic design and design that webpage for Vanguard. It was really catchy!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
Re: "$1 Million is Closer Than You Think"
The graphics were literally dizzying!
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Re: "$1 Million is Closer Than You Think"
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.
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Re: "$1 Million is Closer Than You Think"
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.
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.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” |
-Jack Bogle
Re: "$1 Million is Closer Than You Think"
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.
*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"
Catchy yes, but too distracting. After seeing the advertisement I remember the graphics more then the message. Not useful.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!
Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” |
-Jack Bogle
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Re: "$1 Million is Closer Than You Think"
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!"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.
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.)
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Re: "$1 Million is Closer Than You Think"
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!
Starting point $913,000, chances of reaching $1M in 5 years: 95%+
I guess every little bit DOES matter!
Re: "$1 Million is Closer Than You Think"
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.
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.
"The stock market is a giant distraction from the business of investing." - Jack Bogle
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Re: "$1 Million is Closer Than You Think"
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!
Thanks for the morale boost this morning!!!
Thanks for the morale boost this morning!!!
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
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Re: "$1 Million is Closer Than You Think"
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.bertilak wrote: ↑Tue Nov 07, 2017 9:16 amThey 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!"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.
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.)
Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” |
-Jack Bogle
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Re: "$1 Million is Closer Than You Think"
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.staythecourse wrote: ↑Tue Nov 07, 2017 11:11 amI 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.bertilak wrote: ↑Tue Nov 07, 2017 9:16 amThey 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!"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.
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.)
Good luck.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Re: "$1 Million is Closer Than You Think"
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.bertilak wrote: ↑Tue Nov 07, 2017 11:23 amI 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.staythecourse wrote: ↑Tue Nov 07, 2017 11:11 amI 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.bertilak wrote: ↑Tue Nov 07, 2017 9:16 amThey 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!"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.
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.)
Good luck.
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.
"Discipline matters more than allocation.” |—| "In finance, if you’re certain of anything, you’re out of your mind." ─William Bernstein
Re: "$1 Million is Closer Than You Think"
+1iceport 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.
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.
Re: "$1 Million is Closer Than You Think"
Yes! Exactly the same for me!bligh wrote: ↑Tue Nov 07, 2017 11:54 am+1iceport 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.
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.
"Discipline matters more than allocation.” |—| "In finance, if you’re certain of anything, you’re out of your mind." ─William Bernstein
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Re: "$1 Million is Closer Than You Think"
Slim.
Our retirement portfolios are designed for Income and security.
ymmv
Our retirement portfolios are designed for Income and security.
ymmv
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Re: "$1 Million is Closer Than You Think"
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.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?
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Re: "$1 Million is Closer Than You Think"
16% chance by 50. 82% chance by 60. Substantial jump.
Re: "$1 Million is Closer Than You Think"
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.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
Time is the ultimate currency.
Re: "$1 Million is Closer Than You Think"
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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Re: "$1 Million is Closer Than You Think"
'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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Re: "$1 Million is Closer Than You Think"
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.iceport wrote: ↑Tue Nov 07, 2017 12:00 pmYes! Exactly the same for me!bligh wrote: ↑Tue Nov 07, 2017 11:54 am+1iceport 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.
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.
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Re: "$1 Million is Closer Than You Think"
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.
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.
Re: "$1 Million is Closer Than You Think"
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.
Re: "$1 Million is Closer Than You Think"
They should include a part that shows how much faster your money will grow if your investment company doesn't spend it on advertising...
Re: "$1 Million is Closer Than You Think"
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.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
Re: "$1 Million is Closer Than You Think"
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?
Re: "$1 Million is Closer Than You Think"
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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- Posts: 218
- Joined: Thu Aug 23, 2012 4:01 pm
Re: "$1 Million is Closer Than You Think"
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.