Sign up for our free live webinar!

Learn "How to Invest in Index Funds" on May 17th @ 5PM PT!

Am I on track to become a millionaire at retirement?

I think a lot of young investors wonder “am I on pace?!”. With all the factors it can be hard to know. Well here’s a very rough look at where someone who makes equal monthly investments from 25 to 65 is at each age along the way.⁣‎
⁣‎
This chart assumes a starting investment of $0 at the beginning of your 25th year (I know many are in the negatives at this age). Then, contributing $363/month for the next 40 years. You can see the massive power of compound growth and time. The first five years your investment only increases less than $30,000. But your last five years it increases over $300,000!⁣‎
⁣‎
Of course your experience will be different. Maybe you’re getting out of debt first. Maybe you have a big lump sum but a lower monthly investment. Maybe you’re starting later but putting in a lot more per month. ‎

One of my favorite tips to figure how where you’re at is to find an online investment growth calculator. I have one on my website that I built here. You can put in your age, starting investment amount, monthly investment amount, target retirement age, etc and it shows you what is projected to happen going forward. Try out some different numbers and see where you’ll be later. Look at what a difference changing your retirement date makes.‎

The stock market has historically returned about 10% over the last 100+ years. Inflation erodes about 2-3% of that. So I think it’s reasonable to use 7% as a forward-looking, inflation adjusted projection of your investment growth.‎

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.⁣‎
⁣‎
– Jeremy⁣‎
⁣‎
via Instagram

Sign up for our
free live webinar!

Come join us on Monday, May 17th @ 5PM PT!

We'll be giving away 10 free copies of the course as well as PFC swag gift cards!

Days
Hours
Minutes
Seconds

LEARN TO INVEST!

Days
Hours
Minutes
Seconds

Come join us on Monday, May 17th @ 5PM PT!

We'll be giving away 10 free copies of the course as well as PFC swag gift cards!

LET'S CONNECT

ABOUT

Jeremy Circle

Hi, I’m Jeremy! I retired at 36 and currently have a net worth of over $4 million. 

Personal Finance Club is here to give simple, unbiased information on how to win with money and become a multi-millionaire!

MORE BLOG POSTS

Is investing the same as gambling?

I don’t know what’s going to happen to GameStop or AMC or DogeCoin tomorrow. (And anyone who tells you they do is either full of shit, trying to sell you something, or both). That’s what’s make it gambling. It’s just

Read more →