I often get asked “how much should I be investing?” I think that’s kind of a funny question because, in my opinion, the answer is “as much as you can!” Are you worried about investing too much? You’ll end up too rich? Have to retire too early? The more you invest the better!
Anyway, if you want an idea of “based on my age, what will it take to get to a million bucks?” That’s what this chart shows you. Find your age and look at the number. That’s what you need to invest monthly to get to a million by 65. If you want to get to two million, double it. Ten million 10x it. A hundred million, call me, because if you have that kind of money to invest I have a bitcoin scam I want to get you involved with asap.
If you’re thinking “7%?! That’s crazy!” Well, the S&P 500 has returned an average of about 10% per year over the last 100 years. It’s up about 5% year to date in the midst of a global pandemic. I think 7% is a reasonable ballpark projection that accounts for the cost of inflation looking forward.
If you’re wondering how to do this, check out my “How to Invest” story highlight that points to some of my posts to help you get started. I’m also working my tail off on my new course I’m launching on October 1st! (Just 23 days away). The course won’t have any secrets, just the same information you find on this page and in all the classic books on investing. But it will be a more comprehensive A-Z walk through that is hopefully a more helpful format for some new investors! :)
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.