I know not all of you are 25, and I speculate that some of you may not even be named Ashley or Amanda. So I often get feedback like “what if I don’t have 40 years?!” I like giving 40 year examples, because it’s about the length of a typical working career. And it’s enough decades to really let compound growth work its magic. But yeah, I get it, you don’t want to be projecting an 80 year old retirement.

So here’s an example of two emojis starting at 40 and 45. EVEN IF you’re starting more “mid career” those years of investing/growth are so important! The math on this assumes a simple 7% annual return (conservative inflation adjusted growth projection).

I’m SO often asked, “ok, but I’m ____ years old, what should I do?!” The answer is always the same. Spend less than you make and invest the difference! There isn’t a shortcut if you’re starting later in life. In fact, the only thing you SHOULD change is how much you invest. If you don’t have the luxury of 40 years until retirement, you likely can’t put away a tiny portion of your income. $500/month at a 7% rate of return for 40 years comes out to $1.2 million. If if you want to get to $1.2 million in 20 years you need to invest about $2,400/month!

But hope is not lost. No matter your age, if you’re starting from zero and start investing HALF of your income, you can retire in 15 years! That’s obviously an extreme example, but you can certainly still end up with a healthy retirement if you start getting serious! :)

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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