Returns That Matter: Timing, Patience & Profit with Purpose

0:01 Hey there, and welcome to Faith in Finance, where your values and your financial vision come together. I'm your host, Geil Thompson, Registered Rep for Joseph Eden Capital, a sister firm of Joseph Wealth Management. Every week, I'll be walking with you through the tools, truths, and strategies that help you build wealth with purpose, clarity, and peace. Because your money isn't just about what you have. It's about what you're building. Let's get started. Today, we're going deep on.

0:58 question we hear all the time. What's the return on investment? Now, that might sound like a simple question, but most people don't fully understand what return really means. And without that understanding, it's easy to chase hype, get nervous during market downturns, or even miss out on the long -term blessing of investing. But when you do understand what a return truly is and how to measure it, you start investing with confidence, not confusion. So let's walk through it together. When we talk about returns, we're really asking, how much did my money grow over time? That can be measured three simple ways. Number one, a dollar amount.

1:47 Number two, a percentage or number three, an annualized return. Let's walk through each a bit. Number one, the dollar amount. So let's just say you invested a thousand dollars and now it's worth eleven hundred. That's a hundred dollar gain. Simple math. Eleven hundred minus a thousand equals a hundred dollar return. Number two, percentage return. To express this gain as a percentage, you take that $100 return and divide it by the $1 ,000, which was your original investment, and you'll get .10. Now, you're not finished. I need you to now take that number and multiply it by 100. It should equate to 10 % return. The third thing, we're talking about an annualized return. Let's say you take the same $1 ,000 and it grows to $1 ,300 over three years. That's a total gain of $300 or 30%. But how much did you actually earn per year? That's what the annualized return tells us. And in this case, it equates to about 9 .1 % per year. There's a formula for this, but most platforms calculate it automatically for you. You don't need to do

3:18 the math. I just want you to understand what it means and how to calculate it. Now, let's talk about being realistic a bit. Most new investors want fast results, quick flips, viral returns, short -term wins. But folks, let's be clear. Real wealth is not built fast. It takes time. Historically, the market returns are about 7 to 10 percent annually over the long haul. So let's see what happens if you stay consistent. Let's say you start with $100 today and you open an account. If that account on average generates about an 8 percent return. After 10 years, you'll have invested $12 ,000 because we know $100 times 12 is $1 ,200, but it's 10 years. So times it again by 10. You've invested $12 ,000, but with that 8 % a year compounding, it should grow to approximately $18 ,000. That's a $6 ,000 growth profit. That's excellent. Let's use that same formula and let's extend it out for 20 years.

4:36 So now you've invested $24 ,000 and it grows to $58 ,000 or more. That's $34 ,000 in growth. But wait, it gets even better because I really want you to understand the power of time. Let's say you invest for 30 years. You've invested $36 ,000 only of your own capital, $100 a month. Now it's grown to over 135 ,000 at an annualized rate of 8%. That's nearly $100 ,000 in compounded growth. That's the power of patience. Time in the market always beats timing the market. You don't have to predict the future. You just need to be disciplined and have a plan. Even when you're earning solid returns, there are three key things that quietly eat away at our progress all the time. If you're not careful, number one is inflation. If your investment returns at 8 % but inflation is 3%, your real return is only 5%. This is why it's important to invest in things that outpace the rate of inflation. The second thing is taxes. Now, when it comes to taxes, if you're investing in a regular brokerage account,

6:08 you may owe taxes on your gains every year. But with accounts like Roth IRAs or 401ks, your money grows tax free or tax deferred. This is a huge advantage. Number three, fees. You got to know what you're paying in fees, people. Some investments come with high expense ratios or hidden fees. Even a one to two percent fee can eat into long term growth over time. At Joseph Wealth Management, we help clients build low cost, tax efficient portfolios so you can keep more of what you earn.

6:50 Now, let's tie this all back to faith, because, of course, this is faith and finance, right? Galatians 6 and 9 says this. Let us not grow weary in doing good, but in due season we shall reap if we faint not. That's the principle behind investing. You sow with intention. You water with consistency. You wait with wisdom and patience. But most people give up too soon. They panic the moment the market dips. Listen, pulling out your money during a dip is one of the worst things you could do. They pull out before you reap the harvest. But don't allow fear to consume you.

7:37 Don't do this. You're building with faith. You're planting with purpose. You understand time isn't your enemy. It's your advantage. Stay in position, stay in the ground and stay focused on the harvest. Now, you know, I couldn't end this segment without, of course, providing you with a challenge. So here's your challenge for this week. I want you to search for a free investment calculator online. I want you to plug in $100 a month. Because ultimately what I want you to do is for you to begin to start plugging in an amount that maybe you can say to yourself, hey, I can do this. A hundred dollars a month. And then I want you to put a seven or eight percent return. Next, I want you to calculate and see how much you could potentially have at 10 years, at 20 years, at 30 years. Look at it. How much did you invest? How much could it potentially grow and what it means for your future, your family and your legacy? Because this isn't just about dollars. It's about vision.

8:53 It's about impact. It's about faith. And if you're ready to align your finances with purpose, I want you to call us. Let's talk. Visit josephwealthmanagement .com or call us at 800 -807 - 2881 to schedule your free consultation. Let's build wealth because faith doesn't just believe for returns. It prepares for it. Until next time, keep building, keep sowing and keep believing. Welcome to our faith perspective. Before we close, let's bring this home in the spirit. The principle of sowing and reaping isn't just financial, it's spiritual.

9:42 In the kingdom, every seed has a season and every season requires faith. Galatians 6 and 9 says, let us not grow weary in doing good. For in due season, we shall reap if we faint not. When you invest, you're not just planting money, you're planting trust. You're saying, I believe in the process. I believe in the promise. And I believe that what I sow today will produce fruit tomorrow. That mindset anchors you. When the market fluctuates, it'll remind you to stay the course. It affirms that true wealth isn't rushed. It's revealed over time. So don't grow weary in doing good.

10:33 Don't pull out of the process prematurely. Your return, both spiritual and financial, is being prepared in the background. And when the season comes, you'll be ready to reap. Thank you for tuning in today with us for Faith and Finance. We look forward to seeing you next episode. The Faith and Finance podcast is intended for educational, informational, and entertainment purposes only.

11:28 The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect those of Joseph Wealth Management, Joseph Eden Capital, or any affiliated entities. Nothing shared on this podcast should be construed as personalized, financial, legal, tax, or investment advice. All investing carries risk, including the potential loss of principal. Listeners are strongly encouraged to consult with a licensed financial advisor or fiduciary who understands their unique circumstances before making any financial decisions. Joseph Wealth Management and Joseph Eden Capital are registered entities and operate in accordance with applicable regulatory guidelines. This is conducted only in jurisdictions where they are duly licensed or exempt from registration.