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It’s easier to become a millionaire if you’re a millennial—not in your 50s or 60s, says money expert

By | Lance Lambert | www.cnbc.com

The money moves you make right out of school, and over the next 10 years, can make a huge impact on your wealth as you age.

“Millionaires are made in their 20s and 30s, not their 50s and 60s,” says Fred Creutzer, president of Creutzer Financial Services in Maryland. “If you wait until you’re 50, you’re never going to catch someone who started at a young age. When it comes to investing, the early bird always gets the worm.”

There are nearly 12 million households in America with a net worth over $1 million. Many of these millionaires achieved that goal the tried-and-true way: They started investing when they were young and kept at it the rest of their career.

And young folks today are going to need the money. A Grow analysis finds that a 25-year-old earning $50,000 today could very well need $1.6 million saved in order to retire comfortably.

Here’s how to set yourself up for financial success:

Take advantage of the power of compounding

A 25-year-old who invested $5,000 per year until the age of 35, assuming an 8% annual return, would amass around $787,000 by the age of 65. However, someone who started investing $5,000 per year at the age of 35 and continued until they were 65, with the same annual return, would only amass around $612,000.

Click here to read the full article

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www.cnbc.com
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