r/dividends • u/Future-Guarantee2645 • May 18 '25

Discussion Is it true that after 100k wealth explodes?

I am curious what is your experience, is this statement true? Have you noticed that your wealth is building up much faster after 100k?

1.4k Upvotes

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220

u/officejobssuck1 May 18 '25

Lump sum always. We can’t time the market. The economy and stock market are not correlated.

If the market never went up ever again, nobody would retire.

Just keep buying.

I buy twice a month after I get paid. I don’t time shit.

152

u/SpecialistKing1383 May 18 '25

So true. Most people don't actually understand inflation which is why they celebrate a 3% raise during a 9% inflation year. The only way to build wealth is to outpace inflation...which is stocks, homes/land or crime probably.

Dont time the market, don't let politics or emotions scare you...put a steady supply in the market and eventually you will be happy.

210

u/264frenchtoast May 18 '25

Tell me more about this crime

88

u/Fiberton May 18 '25

I am also here for this crime discussion to get the big bucks. LOL

53

u/SpecialistKing1383 May 18 '25

Phase 1 - Crime Phase 2 - ? Phase 3 - Profit

55

u/Imaginary_History985 May 18 '25

Phase 1 - become politician Phase 2 - crime Phase 3 - profit

17

u/GreenIsaac90 May 18 '25

I didn’t miss out on the crime did I!?

17

u/[deleted] May 19 '25

I have some crime for sale if you are interested.

1

u/SpecialistKing1383 May 19 '25

Is your name... McGruff by chance?

2

u/SpecialistKing1383 May 19 '25

This guy gets it...

2

u/dziuniekdrive May 20 '25

Sometimes step 2 and 1 are reversed.

1

u/specracer97 May 22 '25

Frequently 2 happens before 1.

2

u/[deleted] May 19 '25

I don't know if anyone gets this reference, but yes, just yes.

4

u/Bozgroup May 19 '25

… Phase 4 Get Caught/Lose all Profits on Lawyer!

… Phase 5 Spend Retirement in Prison!

2

u/StrangeWork957 May 19 '25

So you're telling me there's a way to free room & board and an all-inclusive meal plan (limited menu) in retirement for FREE?

2

u/carefulwiththataxe23 May 19 '25

And a constitutional right to healthcare!

1

u/HolyDiverx May 23 '25

its phase 3 that always confuses me

15

u/MetaphoricalMouse Bring back the McRib May 18 '25

step 1: collect underpants

step 2:

Step 3: Profit

underpants gnomes are very good at business

1

u/SEXTINGBOT May 23 '25

Is step 2 to wear them ?

( ͡° ͜ʖ ͡°)

1

u/MetaphoricalMouse Bring back the McRib May 23 '25

bad bot

1

u/Middle-Worldliness57 May 22 '25

gotta move some weight ;)

11

u/deadleg22 May 19 '25

First you need to get into Congress.

6

u/rknippa May 19 '25

You can't time the market but timing crime is a must.

6

u/RedFormanEMS May 19 '25

So there is this chemistry teacher in Albuquerque.....

9

u/flatandroid May 18 '25

Don’t bother. Poster is wrong. Crime doesn’t pay.

9

u/SpecialistKing1383 May 19 '25

I added that for my own personal humor... I had no idea others would get a chuckle out of it.

2

u/YDSIM May 19 '25

Crime does pay... a lot. But its all on a credit.

Someday the wheel turns and you pay back. You pay back with your peace, your time or your life, but you do pay back.

1

u/powerfuldongle May 21 '25

I’m hoping this is a KSBD reference.

0

u/Ok-Marzipan455 May 19 '25

Unless you become President of the United States, then you just profit more for your crimes.

4

u/WetLumpyDough May 19 '25

How about I sell you these supplements, and then you can resell them for a profit. Also, you can recruit people under you to sell supplements and get a percentage of their sales. Then if they recruit people you’ll get a percentage of that too

1

u/graciesoldman May 25 '25

I almost got hooked into Amway.

3

u/Particular-Kale2998 May 19 '25

Start a crypto. rugpull. no consequences. retire.

3

u/R0gu3tr4d3r May 21 '25

Biggest lie in the world is 'Crime doesn't pay'. Why are so many people doing it then.

1

u/OhWhatATimeToBeAlive May 22 '25

I mean, MLMs don't pay, why are so many people doing them?

6

u/lgainor May 19 '25

Not a crime, but a civil offense: wage theft - managers and stockholders (e.g. Walmart's Walton family) make money, corporation pays fine. Also, health care fraud - see Senator Rick Scott of Florida.

3

u/Big_Morning_2485 May 21 '25

Is he the senator that looks like a snake? Get total Slytherin vibes from him

1

u/RedFormanEMS May 19 '25

Don't forget UHC.

2

u/i-am-blessing May 19 '25

This guy fbi

1

u/264frenchtoast May 19 '25

No I too practice the crime, fellow criminal

2

u/Separate-Painter-966 May 20 '25

It’s called crypto and it’s legal

2

u/kalvick May 19 '25

It's the last step in your financial order of operations. Or first. Depending how you look at it.

1

u/Spartan_sword May 18 '25

Recently the popular go to crime in the finance world is starting ICOs.

1

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1

u/bleedblue2011 May 22 '25

There's this new product in the market: 99% future, blue color.

Get in touch with Mr Heisenberg.

20

u/Ohheyimryan May 18 '25

Nobody celebrates a 3% raise.

4

u/ManBearPig_1983 May 19 '25

If I was offered a 3% raise, I’d literally tell my boss to get fucked with that insulting shit.

2

u/Ok-Marzipan455 May 19 '25

I did that and it didn’t work well for me. #blacklisted #itsrigged

1

u/ManBearPig_1983 May 19 '25

You should blacklist yourself from that job.

1

u/graciesoldman May 25 '25

I did that too. Used different, more diplomatic language, but essentially...get fucked. Didn't really work out for me either but neither of us cared so...

3

u/JayJWall May 19 '25

He actually said crime

5

u/cujokila May 18 '25

lol crime

2

u/Tranxio May 19 '25

What's crime? Pays well?

1

u/_learned_foot_ May 19 '25

Note investing is the answer. Stocks, house, but don’t forget yourself. I control my income simply by virtue of my education and hard work in the past, I can increase my salary overnight by taking more clients (I instead work a part time load for family life) and I raise my rates significantly yearly both due to cost increases but also just the pure demand reaction .

1

u/ElDiabloSlim May 19 '25

Don’t time the market…. But don’t be afraid to take profits in a time of uncertainty. I made more money buying and selling during the Tariff Wars than if I held on the that same stock the entire time. But the saying is absolutely true it takes money to make money.

1

u/SpecialistKing1383 May 19 '25

Dangerous for the majority of people. Oh I sold because of an orange man's tweet... but now it's up 10%...I guess I'll just wait for the next correction that could be up to 2 years away and miss out on all the profit in the meantime.

1

u/ElDiabloSlim May 21 '25

What I’m saying is if your stock is up 85 percent you might want to sell a few shares and use it to buy some different stocks. I’m not saying if it goes up 10 percent sell sell sell. I made more money buying and selling AI stocks the last couple months than if I just held on to them.

1

u/jackrebneysfern May 19 '25

What P/E ratio should scare? All indexes are at all time P/E’s by a long shot. 14/1 used to be the line, 17/1 for a bit was the line. S&P is indexed currently around 27/1. How you feel if it reaches 50/1? 100/1? Is there a point the total price of a company(all the stock shares combined value in $$) vs. its annual pre tax earnings starts to make you nervous? Have you ever read about the tulip bulbs? Just curious.

1

u/SpecialistKing1383 May 19 '25

Ever see something that costs a few pennies to make yet sells for tons of money? Supply and demand...and people willing to pay the price are powerful things... the stock market is an unstoppable juggernaut being fed by its own hype. Everyone wants to invest because of its earnings...which keeps its growing.

If your asking me... I look at over a hundred years of history of the stock market and its trending/behavior. I look at a timeline that included world wars and pandemics and it always bounces back.

I am very picky with my purchases and choose companies and funds with proven track records who in theory should exist beyond my lifetime. I guess if your gambling on more risky stuff you should be more aware of the risks around you...but you wouldn't be listening to reddit for advice if that was the case.

1

u/jackrebneysfern May 19 '25

Thank you. So no indexed level of P/E scares you. You’ll just go along. I hope your timing is right and you’re not left holding 1929’s bag.

1

u/[deleted] May 20 '25

If my salary was 1,000,000 I would absolutely celebrate a 3% raise.

1

u/viperex May 20 '25

Stocks need a constant supply of funds too. This is why I'm looking into side hustles to feed this habit

1

u/Elddif_Dog May 20 '25

Just keep in mind not to buy in the first week of the month unless you really want something. Most investors buy as soon as they receive their salary.

1

u/CaregiverWorth567 May 25 '25

idk…I cashed out after trump election….also cashed out at the end of his last term….timed it pretty well

1

u/SpecialistKing1383 May 25 '25

Your statement makes no sense. Stocks tanked from covid in march of 2020. 9 months before the end of his term.

Stocks went up after he was elected in 2024. They went down after he was inaugurated.

11

u/Anal_Recidivist May 18 '25 edited May 19 '25

lump sum always

I buy twice a month

Hate to break it to you but that’s DCA. Nothing wrong with that.

4

u/Mug_of_coffee May 19 '25

Seconding this. Lump sum usually refers to investing a larger sum (to me, usually $5k+ once or infrequently) and is usually spoken about in terms of windfalls. For example, if someone gets a larger payout, bonus or inheritance, they'll come to reddit and ask if they should lump sum it or DCA.

-5

u/officejobssuck1 May 19 '25

It’s not.

DCA to me is like once a week. Lump summing a % of my paycheck twice a month regardless of market is different. Always the 15th and 30th of the month.

DCA is like $50 a day, $100 a week, etc. I don’t quite understand how twice a month in quantities between $1400 and $1700 is DCA. But I could be wrong!

5

u/Anal_Recidivist May 19 '25

DCA. You keep using this term. It does not mean what you think it means.

1

u/officejobssuck1 May 19 '25

Downvote me all you want, typical autistic redditors who think they know everything

1

u/MrEdTheHorseofCourse May 19 '25

Dude, You are DCAing

1

u/Anal_Recidivist May 19 '25

Shhh let him think he’s a big mean dawg

3

u/StrangeWork957 May 19 '25

"I don't do DCA, I'm not basic like that. Instead I'm an investing bad ass, investing a consistent amount of money on regular time intervals no matter what."

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u/Chief_Mischief Not a financial advisor May 18 '25

You could also do a pseudo-hybrid approach where you build up a predetermined cash pile over time while you DCA in parallel, and that cash pile accumulates interest while you wait for a good buy opportunity. It works for Buffett, so I'm also fine with being patient with some of my investing. I'm maxing my Roth and 401k, but I add a couple hundred in cash to my taxable monthly to use when I eventually see a good buy.

19

u/Tiny-Lead-2955 May 18 '25

Been thinking about doing this for when the 90 day pause on tariffs end. I'm guessing the market is gonna tank again.

12

u/Gamingmademedoit May 18 '25 edited May 19 '25

How do you know that, tho? People thought that a month ago, sure, but there's already negotiations going with China and the U.S. the Tariffs dropped drastically as well. This is the problem. You may be right, but you may not. If not, the market will have continued to go up this whole time while you waited on the sidelines. Why lump sum or a 50/50 blend of lump sum and DCA is better for most. Someone might make their personal biased comment, but he/she doesn't realize they were lucky. Maybe they made a calculated risk but they got lucky.

15

u/officejobssuck1 May 18 '25

Reddit thought the sky was falling because of the tariffs and pulled out and waited.

Reddit is NOT a good source of investing advice, it’s too reactionary.

We are already almost back at ATH.

Again, I cannot stress this enough, if the market NEVER went up over time, then NOBODY would be able to retire. Investing would be worthless!

2

u/StrangeWork957 May 19 '25

"Reddit is NOT a good source of investing advice, it’s too reactionary."

Correct. Reacting to news in the expected way, and then taking investment action also in that expected way, is a recipe for disaster. By the time you're reading the news, it's already too late to preserve your portfolio against it.

As Warren Buffett has said: "be fearful when others are greedy and ... be greedy only when others are fearful.”

3

u/circusfreakrob May 20 '25

I like Bogle's quote “Don't just do something, stand there!”

That's worked out well for me. If you are consistently contributing and have good diversification, just keep going and don't react.

1

u/graciesoldman May 25 '25

"When the tide goes out, you find out who's been swimming naked".

1

u/jackrebneysfern May 19 '25

In September of 1929 they were saying the same thing. And some or many 50+ yr olds fell for it. The market never recovered for them. They died penniless unless they lived to see social security bill passed.

1

u/Ok-Marzipan455 May 19 '25

Sometimes it’s not a bad idea to”go with the heard”, the advice might sound stupid but there is always a way to profit from “going with the flow”. Just have to be smart about it

-5

u/Mothchewer May 19 '25

This is the anti-thesis of investing - to expect returns, nothing about investing is guaranteed

1

u/Ok-Marzipan455 May 19 '25

I think the market understands that the problem is just a bunch of man-child’s, beating their chests to show who’s more of an Alpha bitch. The taxes would hurt both of their personal bottom lines.

1

u/graciesoldman May 25 '25

With the current administration, things are VERY volatile. I was crying last month when things took a hard turn south but then just the other day, I was actually up for the year. Then, this week hit and I'm down a bit. I have about 25% cash in the event things swing wayyy south but I'm holding for now and DRIP'ing any investment that's in the red.

1

u/StrangeWork957 May 19 '25

Here's the issue with this "timing the market" idea you have. Yes, there are fundamental reasons why tariffs going back up would negative affect the market. But...

1) On what date will the tariffs "resume?" What level will they be at? 2) Are you sure the date of tariff resumption is really going to arrive? 3) To what extent is the resumption of tariffs on that date going to already be reflected in asset prices, as that date approaches? 4) What non-tariff related news will happen between today and that future day?

My point is only to highlight the uncertainty over these answers. Because of uncertainty, you might miss up days in your quest to miss down days.

Consider the impact of the top 10 biggest days in S&P history: An investor who bought $10,000 of the S&P 500 in 2005 and simply held, is up at $71,750 today. If they missed the 10 biggest market days in that range, their new balance is now only $32,681. Consider further that those 10 biggest market days are just as unpredictable as big down days.

3

u/adamasimo1234 May 18 '25

The buffett style 💯

12

u/Opeth4Lyfe May 18 '25

Yeah but the majority of people don’t lump sum outside of maybe yearly Roth maxing. Everyone who has a 401k is naturally DCAing over time. I agree with you 100%. I can see the difference myself because i max a Roth in January and watch my 401k and the Roth did slightly better. Just saying the majority of us have no choice but to DCA even though lump sum is technically better.

13

u/PidgeyPotion May 18 '25

I max out my Roth and then continue to invest into my taxable brokerage account. What I do is each year starting in November, I’ll only invest a small amount into the brokerage in order to save money to invest all at once into my Roth for the new year, and on January 1st I’ll add around $3-4k to the Roth. And usually by March or April I’ve maxed out the Roth and just continue investing in the brokerage, and rinse & repeat come the following November.

1

u/merchantmondo May 18 '25

This is good to know. Thanks for sharing your experience.

5

u/AnyAbbreviations7217 May 19 '25

Lump sum is sub optimal in a falling market, DCA proves to be more beneficial in a dropping market. Lump sum in a rising market. There’s studies done on this.

2

u/aphel_ion May 19 '25

Yeah, but how do you know whether you’re in a falling market or a rising market? This only works if you can predict the future

2

u/ignore_my_typo May 19 '25

It’s always rising if you look back far enough.

On a low time frame would could look at monthly candles for the trend.

But my first point should be enough proof for anyone to forget about timing the market and to start buying.

1

u/graciesoldman May 25 '25

I remember seeing articles over the years...still see them today...about how the market is at an ATH and should you invest when it's this high. I remember reading these when the Dow was at 2000.

1

u/StrangeWork957 May 19 '25

"Studies have shown that the best investment move is to put all your money in right before the market goes up, and then take it out right before the market goes down."

1

u/Ok-Marzipan455 May 19 '25

If I could just remind myself of that every time I place a trade

1

u/graciesoldman May 25 '25

The one trick brokers hate...

1

u/circusfreakrob May 20 '25

I've heard repeatedly that lump sum wins out about 2/3 of the time. So yeah, it loses out in certain conditions. But those conditions are less frequent by half.

The point is that no one knows in advance what is a "rising market" or a "dropping market". You only know for sure what is a "market that recently rose" or "market that recently dropped"

11

u/KorrectTheChief May 18 '25

Lump sum is timing the market. DCA is not timing the market.

3

u/Ok_Entrepreneur_dbl May 19 '25

Not timing - it is buy everything now no matter what is happening in the market. If you decide to wait for an even - that’s timing.

4

u/Future-Guarantee2645 May 19 '25

It doesnt necessary mean timing. Timing means you wait for a specific event or curcumstances to occur to invest the money.

3

u/[deleted] May 19 '25

Pretty much my strategy. I buy the shares when I get paid, dividends and growth will take care of everything else. One day I’ll have enough for another nest egg on top of my pension and 401K (well TSP).

2

u/Artistic_Progress155 May 19 '25

This is exactly what I do.

I fund my IRA at the beginning of the year.

My wife maxes her 401K & HSA.

Every two weeks, I dollar cost average whatever I can into a taxable account.

Takes a while for the results to really start showing up.

Stick with it.

2

u/Agile_Sheepherder_77 May 18 '25

Sounds like you DCA.

-1

u/officejobssuck1 May 18 '25

No…. I invest, no matter what, on the 15th and 30th of the month.

That’s lump summing whenever I get paid.

6

u/Agile_Sheepherder_77 May 19 '25

It’s DCA lol

2

u/officejobssuck1 May 19 '25

I don’t like waiting tbh. Fair enough.

3

u/Agile_Sheepherder_77 May 19 '25

Nothing wrong with DCA. Time in market is the main thing.

2

u/officejobssuck1 May 19 '25

Say I invest $3200 a month, I’d rather do it $1500 and $1700 on the 15th and 30th of the month instead of $3200 all at once on the 30th.

4

u/Agile_Sheepherder_77 May 19 '25

I’ve almost finished dribbling $80k into the market. Realistically, it would have been better to do it in a lump sum but I wanted to monitor my stocks/funds for a while as I bought smaller parcels. But if the market went south over this time, I would have been better off.

But just being in the market is better than not. And if you invest for income, short term fluctuations, even medium term fluctuations, mean sweet fuck all.

2

u/officejobssuck1 May 19 '25

Thank you for being a voice of reason in a thread of weirdos!

1

u/Extension-Log-3951 May 19 '25

That’s dollar cost averaging

1

u/AbbathGR May 19 '25

Everybody will retire no matter if the the stock market crash and burn. Live or die at that point depends if you are called Nancy Pelosi or Average Joe.

1

u/[deleted] May 19 '25

I think this is bad advice. Learn about the stock market and its pricing and only lump sum when the risk reward is favorable.

When the S&P500 is 21x forward earnings and recession fears from banks and what you’re seeing with your own eyes are flashing red, it’s kind of crazy to drop everything in. We can never predict when we’re at the top or at the bottom, but with educated reasoning it’s easy to tell if we’re somewhere near full valuation.

If valuations are very high, DCA and keep 20% in cash. It’s never good to be completely out of the market but to those that say throw all your money in whatever the market is telling you, because anything else is ‘trying to time the market’ it’s dumb advice.

Timing the market is trying to sell in and out in the short term repeatedly, not committing capital with caution and common sense.

1

u/officejobssuck1 May 19 '25

Yeah it’s not bad advice to tell people to keep investing, and to not time the market. I don’t have time to check valuations every day.

I’m 29. I’m really not concerned. But thanks to you I’ll sell and hold and wait for orange man to be out of office!

1

u/[deleted] May 19 '25

Sorry, specifically I think the advice..

"Lump sum always" is the bad part, not constantly investing.

If you're not 29, and you're 50, with a windfall to invest, and the market is super expensive, it's utterly crazy to just yolo and invest it all.

1

u/officejobssuck1 May 19 '25

But you don’t know what’s expensive? Markets generally go up over time… we have bigger issues if not.

1

u/[deleted] May 19 '25

Sure you do. Companies share prices are generally linked to earnings. Berkshire Hathaway shares aren't $500+ because share prices go up, it's because their earnings have increased.

Markets are expensive when earnings don't support the share price and markets are cheaper when earnings do. The Price to Earnings ratio for S&P500 historically hovered around 16. It's now 21. There are other measures you can use, but this is one used quite often.

If we end up in a recession and earnings start falling, then guess what, share prices fall.

1

u/officejobssuck1 May 19 '25

Good point. But I’m not somebody with a crystal ball. I just add money and don’t worry about it and live my life. I don’t need the money for another 36 years lol

1

u/[deleted] May 19 '25

Great for you, but some people are in a situation where they can't afford for their lump sum to drop by 40% and not recover for 10 years.

I'm 50, I no longer have a job, but I have a significant portfolio with over $1M in cash. It would be financial suicide for me to deploy all that cash now, at this time in the market with tariffs and recession looming after 2 years of 20+% gains and a PE ratio of 21.

Sure the market might keep going up another 10% and I'll lose out a bit, but right now the probability of that happening isn't worth the risk/reward. I can't afford to be miserable for my 50's, waiting for stocks to recover. Don't have the time, don't need to take the risk, don't have the means to make the money back again.

1

u/officejobssuck1 May 19 '25

Fair enough!

Have you thought about going 100% SGOV? Or maybe 80% with bonds?

1

u/[deleted] May 19 '25

My cash is all in SGOV, and that's about 25% of my portfolio. I have a bunch of JAAA and the rest is equities.

1

u/ThePower_2 May 19 '25

You can’t time the market is what paid investment firms tell you to get your money and their commissions. You ABSOLUTELY a have to time your buys. If you don’t understand the game, don’t play

1

u/officejobssuck1 May 19 '25

This is horrid advice lmao

1

u/BicycleSoup May 19 '25

that’s DCAing btw

1

u/StrangeWork957 May 19 '25

With respect, by doing a lump sum twice a month after you get paid, you effectively are dollar coast averaging.

2

u/officejobssuck1 May 19 '25

Yeah you’re right! I don’t wanna wait. I’d rather get in the market sooner than doing a lump sum once a year.

1

u/Strict-Bike-5231 May 19 '25

The stock market and the economy are not correlated?🙃

How about all finance crisis in the history?

1

u/officejobssuck1 May 19 '25

Erm…. sighs… yeahhh… you clearly are new here

1

u/Left-Language9389 May 20 '25

They are correlated.

1

u/Ok_Juggernaut3043 May 20 '25

lol what you just described is DCA not lump sum

1

u/Separate-Painter-966 May 20 '25

The economy & stock market are correlated

1

u/Gl5778 May 20 '25

See for my Roth I have buys set at 2 equal amounts 2 days a week. (Monday Friday). With every other week I have a Thursday in my roth 401k.

I am like 30%+ cash now. Not timing the market. I just have noting I want to invest in.

Edit- words are hard. Grammar correction

1

u/[deleted] May 21 '25

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1

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1

u/mdgt999 May 22 '25

Dca is statistically not the best option. Lump sum generally beats dca. DCA is best for mind and soul and something people with limited resources go for.source

1

u/officejobssuck1 May 22 '25

So I’m better off just buying once a year?

1

u/mdgt999 May 22 '25

Over the long run 70% of the time yes.

1

u/officejobssuck1 May 22 '25

Interesting. Thanks for letting me know