I recently watched a talk by Steve Chen, founder of CALLTOLEAP. In the speech, he addressed the common question many young investors ask: “I have $10,000. What should I do with my money?” Chen’s answer was refreshingly straightforward—put it in an S&P 500 index fund and leave it there for decades.
This advice struck me as both simple and powerful. While many financial gurus try to complicate investing with hot tips and trendy assets, Chen cuts through the noise with a time-tested strategy that actually works.
The Power of Index Fund Investing
What makes Chen’s advice so compelling is the math behind it. When someone suggested Dogecoin as an alternative, Chen firmly rejected the idea, and I agree with his stance. Cryptocurrency investments are essentially gambling, while index funds offer predictable long-term growth based on historical performance.
The numbers Chen shared are eye-opening:
- $10,000 invested in an S&P 500 ETF grows to approximately $174,000 in 30 years
- The same investment reaches around $452,000 in 40 years
- After 50 years, that initial $10,000 becomes about $1,100,000
Think about this for a moment. You put in just $10,000 of your own money, and the market potentially gives you over a million dollars in return. This isn’t magic – it’s the result of compound interest working in your favor over time.
View this post on Instagram
How to Get Started
I appreciate Chen’s approach because he doesn’t just tell you what to do — he shows you how to do it. Watch him on Instagram — he’s brilliant! The process is surprisingly simple:
- Open an account with a reputable broker like Fidelity or Schwab
- Select a brokerage account option
- Connect your bank account and transfer funds
- Purchase S&P 500 ETF shares
This process’s power lies in its accessibility. Anyone can follow these steps, regardless of their financial background or knowledge.
“Remember, I only put in $10,000 of my own money. The extra $1,100,000 is free money due to compound interest.” Steve Chen
Why This Strategy Beats Trendy Investments
I’ve watched many friends chase quick returns in crypto and other speculative investments, only to get burned when markets turn. The beauty of index investing is its reliability. You’re not betting on a single company or asset — you’re investing in America’s 500 largest publicly traded companies.
When Chen dismisses Dogecoin, he’s not just being conservative. He’s pointing out the fundamental difference between investing and gambling. Cryptocurrency might make some people rich quickly, but it lacks the proven track record and underlying value that makes index funds work.
The S&P 500 has delivered average annual returns of about 10% over the long term. No, you won’t become a millionaire overnight, but you won’t lose everything when a speculative bubble bursts.
The Youth Advantage
Chen explicitly mentions that this strategy works best for young investors, and he’s absolutely right. Time is the most valuable asset in investing, even more so than the amount you invest.
I’m glad I’m not starting over at 25 again — BUT, dear Millennials and Gen Z — it will be okay! A 25-year-old who invests $10,000 and never adds another penny will likely have more money at retirement than someone who starts at 45 and invests $10,000 annually for 20 years. That’s the magic of compound interest — your money makes money, which then makes more money.
This perspective is crucial for young people struggling with whether to save or invest. Even modest amounts invested early can grow into life-changing sums.
I know the recent tax and tariffs issues are worse than the 2008 and 2011 issues I went through, but if you can, stop looking at them and consider doing what Chen has advised. Put your money in and leave it forever. Forget about it, if you can.
Taking Action Now
The most important takeaway from Chen’s talk isn’t just the strategy — it’s the call to action. Financial freedom doesn’t happen by accident. It requires making deliberate choices and taking concrete steps.
I believe everyone should have a simple investment plan they can implement today. Not tomorrow, not when they have more money or feel more confident.
The principles remain the same whether you have $10,000 or $100. Start with what you have, invest in broad market index funds, and give your money time to grow. Your future self will thank you for the million-dollar gift you started building for yourself today.
