How To Retire A Millionaire
So you want to retire a millionaire, do you? We can't blame you. There's no better feeling than proper financial security. The good news: you can get there. However, if you're looking for a get-rich-quick scheme, I'm sorry, but this isn't your blog post. Instead, in this blog, we'll discuss how, through long-term investing, financial planning, and retirement planning, you can become a millionaire by the time you want to retire.
Time Is Of The Essence
There are two major keys when it comes to retirement planning.
1. Time is your biggest ally. The sooner you start saving, the better off you will be.
Albert Einstein reportedly called compound interest the 8th wonder of the world. Compound interest is the process of earning a return on your return. For example, if you have a 7% return on your money every year, you will double your money every ten years. So the more compounding periods you have, the more compound interest works for you. That is how time will benefit you the most.
2. Contribute as much as you can.
There is no such thing as too much money in your 401(k) plan. Nor has everyone ever wished they had saved or invested less. If anything, people wish that they would've saved more or invested more. That's why we urge you to challenge yourself to contribute as much as possible because chances are, when you're 65, you won't regret it.
I've Got Time. How Much Should I Save?
To reiterate, the more you contribute to your retirement savings accounts, the better off you will be. Let's look at an example.
Let's say a woman named Sally is 30 years old. She makes $50,000 annually and hopes to retire by the age of 65 years old. She currently has $0 invested, but she wants to start. If Sally saves $500 a month with an 8% annual rate of return, she could expect to have $1,116,612 in her account by the time she reaches 65 years old. Congrats to Sally! She became a millionaire.
Well, what if Sally had started investing at 22 years old? With $0 invested, if Sally puts $250 away per month, with an 8% annual rate of return, she would have $1,067,849 by the time she hit her goal retirement age of 65. See the benefits?
What's the Easiest Way To A Million?
Let's circle back to the beginning. Remember when we mentioned compound interest? Bingo, that's your ticket. We cannot stress it enough. The earlier you begin to save, the more interest you will earn and the more money you will have. By working with one of our certified fiduciary financial advisors, we can help you get there. There's truly no time to waste. If you're ready to get started, we're offering a free fiduciary retirement assesment. Get started by clicking here.
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