Retire With $5 Million By Investing… Anyone can do it.
The topic of investing is taught as frequently and as often as we are taught about marriage. Just in case you didn’t catch that — we aren’t taught either of the two.
As a society, we want to be able to retire at an old age with enough money to live comfortably. We also want a happy and successful marriage. However, the divorce rate is currently at 50%, and 64% of millennials believe they can never accumulate $1 million dollars by retirement.
Why is this the case?
It is because many people stop learning the moment they leave school.
If an individual seeks to have a good marriage or relationship, that individual should take the time to learn about the keys to a successful marriage or relationship. And if that same person desires to accumulate wealth, it would be wise to study the topic of investing.
How many people actually do this? The answer is — very few.
Did you know…
An 18 year old who begins investing $100 a month, can retire with $5 million by age 65 (assuming a 14% compounded rate of return, the 5 year average for the S&P 500 Index).
An employee, who begins at age 30 and invests $300 a month, can retire with $3.1 million by age 65. If they can wait till they are 70, they can retire with $6.1 million.
Did you notice how expensive it is to wait to invest?
In case you didn’t, an 18 year old can invest $100 a month to reach $5 million by age 65. However, a 30 year old who delays investing by 12 years has to invest $300 a month to accumulate $3.1 million by age 65.
The 30 year old invests three times the amount, but will have less by age 65, as compared to the 18 year old.
The lesson to take away from this article is: the sooner you start investing, the better. The longer you wait, the more expensive it gets to be able to retire.