Why didn’t my parents do this? Because they’re JERKS. Just kidding. They’re great. But they didn’t have that kind of money! They were 27 and 30 when they had me and were just starting their careers. They DID, however, start contributing smaller amounts to their 401ks and investing early and often as soon as they were able. And now they DO have that kind of money and then some!
For the record, I’m 41. So $850K ain’t too shabby of a nest egg 25 or so years before traditional retirement age. If I were let this hypothetical investment grow for another 25 years, assuming a 7% rate of return, it would turn into $4.6 million!
And this $850K is AFTER the downturn of the economy. It would have been closer to $1M at the all time high in January. But guess what, it will go back up and then some. That’s why keep our focus on long term goals, not short term volatility.
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
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