Key Takeaways
- Sarah (teacher, $55K salary) accumulated $1.1M by age 46 through automated index investing — compounding generated 65% of her wealth.
- Marcus built $370K in real estate equity and $38K annual cash flow from 6 rental units using moderate leverage and reinvestment.
- Priya reached $2.5M net worth by age 45 combining a high savings rate, diversified investing, and tax optimization.
- All three case studies share common principles: start early, automate, stay invested through downturns, minimize fees and taxes.
- Compounding is the dominant wealth driver in every case — time in the market matters more than any specific investment choice.
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Test Your Knowledge
1.In Sarah's case study, what percentage of her total portfolio was generated by compounding and market returns (not contributions)?
2.What was Marcus's total loan-to-value ratio across his real estate portfolio?
3.What common principle did all three case studies share?