THIS Strategy Will Explode Your Wealth – Andy Tanner, Del Denney
In this episode of Rich Dad’s Stockcast, host Del Denney is joined by Rich Dad expert Andy Tanner to explore how you can double your compounding power and exponentially grow your wealth. Packed with valuable insights, practical advice, and actionable strategies, this episode is a must-watch for anyone serious about boosting their financial education and investment success.
FREE TRAINING with Andy Tanner:
Understanding Compounding
Andy Tanner kicks off the discussion by explaining the fundamentals of compounding, which he describes simply as reinvestment—using returns from investments to buy more income-generating assets. Compounding is often hailed as the most powerful wealth-building force, and understanding how to harness its power is key to long-term financial growth.
Key Components of Compounding
The three critical components of compounding:
1. Money: Your initial investment capital.
2. Time: The most vital factor, as the longer you invest, the more your wealth compounds.
3. Rate: The return rate you earn on your investments.
Common Misconceptions About Compounding
Andy addresses common misconceptions about compounding, particularly around mutual funds. He warns that high fees, even as low as 1%, can significantly erode your returns over time. Managing your investments and avoiding excessive fees is crucial for maximizing compounding power.
Strategies to Boost Compounding Power
Andy offers a practical strategy for increasing returns: writing covered calls. This conservative options strategy generates extra income from stocks you already own, allowing you to reinvest and enhance your compounding rate. He also stresses the importance of financial education and taking actionable steps, recommending that investors use paper trade accounts to practice before investing real money.
The Role of Leverage
Leverage, when used wisely, can dramatically accelerate compounding. Real estate investors, for example, can leverage properties to increase their investment power and grow their wealth more quickly.
Teaching Financial Education to Kids
Andy shares personal insights on teaching his children about investing and compounding. By opening custodial accounts and allowing children to make real transactions, parents can instill the importance of financial literacy from a young age. Andy emphasizes the balance between education and action as critical for success.
00:00 Introduction
00:44 Understanding Compounding: The Basics
02:21 Breaking Down Advanced Strategies
04:33 Common Misconceptions and Pitfalls
05:20 The Importance of Time, Money, and Rate
07:05 Mutual Funds and Their Impact on Compounding
11:43 The Cost of Fees and Their Long-Term Effects
16:30 Reclaiming and Enhancing Compounding Power
19:07 The Reality of Wealth Transfer
19:23 Navigating Financial Uncertainty
20:05 Teaching Financial Literacy to the Next Generation
21:06 The Power of Compounding
23:43 The Value of College Education
26:20 Taking Action for Financial Success
27:40 The Importance of Practical Experience
29:16 Balancing Learning and Doing
—–
Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.
The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.
Be wary of people who say “oh it’s been performing this way for 15 or 20 or 50 years…”
Markets have been known to collapse and have major upsets in century time frames. We’re coming up on about a century since the last great depression.
Break it down on steppes how an european can invest in US s&p500 or similar us funds portfolios
Buy high, sell low has not worked well for me.
It wouldn’t work for anyone . Buy low,sell high🤪😂
Hey Coach Tanner, would you do a video on setting up your thinkorswim desktop workspace for beginners?
Look at tastytrade. Better then think it swim and created by the same people
Knowledge is Power = 201 and 84
*Financial planning is like navigation. If you know where you are and where you want to go, navigation isn’t such a great problem. It’s when you don’t know the two points that it’s difficult*
Waking up every 14th of each month to 50,000 dollars it’s a blessing to I and my family… Big gratitude to Ricky Wen🙌
Hello, I am very interested. As you know, there are tons of investments out there and without solid knowledge, I can’t decide what is best. Can you explain further how you invest and earn?
Same, I operate a wide- range of Investments with help from My Financial Adviser. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Ricky Wen, has been an amazing experience.
Hello how do you make such monthly?? sometimes I feel so down🤦🏽of myself because of low finance but I still believe in God
I’m favoured, $90K every week! I can now give back to the locals in my community and also support God’s work and the church. God bless America,, all thanks to Mr Ricky Wen
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that’s what everyone said. I’m still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I’m really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
I’m surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
She is my family’s personal broker and also a personal broker in many families I’m United States, she’s a licensed broker and a FINRA AGENT in United states
I’m new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Agree. Very likely we r headed for a decade long bear market in all western assets. It will be a period of geopolitical n currency changes. Within US this is the chance to do the long-needed economic n social n government reforms. If we succeed, US will be on a long-term sustainable growth path in a decade. But we must take the pain 1st n do the adjustments. From investing pov, sell all US, european equities n bonds. Go long Gold and Crypto. Go long emerging market trade…….. I have managed to grow a nest egg of around 100k to a decent 432k in the space of a few months… I’m especially grateful to Francine Duguay’s, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
Francine duguay program is widely available online..
The market has gone berserk! whether you’re a newbie or a veteran trader, everyone needs a sort of coach at some point to thrive forward.
I appreciate the professionalism and dedication of the team behind Francine’s trade signal service.
Francine goes deeper than just looking at surface-level trends. she explores technical, fundamental, and sentiment analysis, offering a comprehensive perspective on the market..
the internet is filled with so many useful information about Francine Duguay