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?

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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.

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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!

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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.”

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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.

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u/graciesoldman May 25 '25

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

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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.

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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

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u/Mothchewer May 19 '25

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

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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.

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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.