A viral TikTok video claims kids can retire with $4 million in their 60s if they sacrifice three years of their young adult life to aggressive saving and investing.
Real estate agent Freddie Smith’s plan sounds too good to be true, and financial experts say it probably is. But the video taps into something real about how young investors are approaching money today.
Having watched crypto millionaires and meme stock legends get rich quick, they want their own version of that success, so they look for front-loaded strategies that promise massive long-term payoffs. It’s the same mentality driving retail traders to pile into meme stocks and crypto, hoping early moves will set them up for life.
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Smith’s strategy has two phases. The first one starts at 16, where a child works part-time earning $1,200 monthly, using $500 to pay off a car loan while doing what they like with the rest.
Phase two is where things get extreme. From 18 to 21, the child works full-time for at least $35,000 annually while living at home rent-free. Parents cover all food and housing costs while the child is able to spend $10,000 and invest $25,000 in the stock market every year.
Smith claims that $75,000 invested over three years, earning 10% annually, could grow to between $4 million and $5 million by the time the child is in their late 60s.
MarketWatch ran the plan by financial advisors, who called several assumptions aggressive. The 10% annual return? That’s the stock market’s long-term average, but it includes crashes and bear markets that could derail the plan.
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The bigger issue, according to the experts, is what Smith leaves out: taxes, emergencies, career changes, and the reality that most families can’t afford to fully support an adult child for three years.
And then there’s inflation. At an annual rate of 3%, the experts note, $4 million in future dollars might buy what $1 million does today. The plan also ignores tax-advantaged accounts like 401(k)s and Roth IRAs that most retirement strategies rely on.
Smith’s plan mirrors how retail investors approach markets today. They front-load capital into high-growth bets, hoping compound returns do the heavy lifting later.
In 2025, retail traders account for roughly 25-35% of daily U.S. stock trading. Many jump into speculative rallies early. Meme stocks, biotech runs, crypto surges, chasing those asymmetric gains that could pay off big over time.
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These trades, like Smith’s plan, rely on perfect timing and iron discipline. Some retail investors have seen 100% returns in months during short squeezes. But for every winner, there are traders who get crushed when momentum reverses.
Early, disciplined investing absolutely works. But like chasing speculative stocks, the path from $75,000 to $4 million depends on countless variables: market returns, personal discipline, family support, and life not getting in the way.
The best investment strategies, whether for teens or traders, combine smart early moves with flexibility to adapt when reality doesn’t match the plan.
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