Compound interest is a beautiful thing.
It makes it possible for even people with modest incomes to become millionaires – with enough time, of course.
Do you dream about retiring as a millionaire?
It’s not as unattainable as you might think. There’s this great video on exactly how much you’d need to squirrel away every month to retire at 67 with 1, 2, and 3 million dollars (if you have no savings to start, and your investments earn 6% annually. You can watch the video here, but I’ll give you the rundown.
If you want to retire with $1,000,000, you’ll need to save:
- $319/month if you start at 20
- $613/month if you start at 30
- $1240/month if you start at 40
- $2831/month if you start at 50
Want $2,000,000? Every month, start saving:
- $639 if you start at 20
- $1226 if you start at 30
- $2480 if you start at 40
- $5662 if you start at 50
If you’re feeling super ambitious and dream of sailing off into the sunset at 67 with a cool $3,000,000, you’d better put the pedal to the metal every month and save:
- $958 from the age of 20
- $1839 from the age of 30
- $3720 from the age of 40
- $8493 from the age of 50
It goes to show, it really is better to start young. The beauty of compound interest is that you need much less of your own money to reach your goal – it just keeps growing and growing! It’s much easier to save $319, $639, and $958 than those scary numbers you need at 50. If you start at 20, you’ll have 47 years to collect compound interest instead of just 17 if you start at 50 – that’s why your payments are lower.
If you want to talk about what’s possible for you and what you can end up with at your retirement, the next step is easy. Book a quick 15 minute chat with me by calling 513-563-PLAN (7526), or head over here and grab a spot.
PS. If you think the numbers I just shared with you might inspire someone you know to start putting money away, don’t be shy about sharing this blog post with them.
