When someone says, “You can be a millionaire!” With just one trick, it could just sound like this – a trick.
But retiring on a million dollars – which would make you a millionaire – is actually a wise and perfectly achievable move. And it would keep making you enough interest to cover your annual expenses after your retirement party.
A 2017 report by Merrill Lynch found that if you saved $ 1 million by the age of 65, you’d make about $ 40,000 in income every year if you left it there. The more you have saved, the more money you will make.
So how do you get there All it takes is a few hundred dollars a month.
If you save $ 300 now, it could mean $ 1 million in your account later
Yes, if you put just $ 300 into a smart investment account by the time you are in your 20s (think of a 401 (k) or IRA employer) you could hit $ 1 million by the time you retire in late 60’s.
The investing professionals at Motley Fool put the numbers down: Say, one average A return of 7% when you invest in the stock market. If you save $ 300 every month for 45 years you will become a millionaire.
You read that right. Just $ 162,000 of your hard-earned cash ($ 3,600 per year) could make you a millionaire by the time you retire. It’s not a trick – it’s the historic return of the stock market.
And don’t worry if you’re not 22 anymore. Invest now and think about how aggressive you will have to be to achieve your goal. You have to save more than $ 300 every month, but becoming a millionaire is not off the table.
Never invested? Start small
If you haven’t started investing and have some cash to spare but maybe not the full $ 300, you can start small. You don’t have to throw thousands of dollars on full stocks to invest. In fact, you can get started with as little as $ 1. *
We like Hidebecause it allows you to choose from hundreds of stocks and funds to build your own investment portfolio. But it makes it easy by dividing them into categories based on your personal goals. Would you like to invest conservatively now? Totally understand! Would you like to dive with a moderate or aggressive risk? Do what you feel
Plus, Stash lets you invest in fractions of stocks, which means you can invest in funds that you normally can’t afford.
If you Join Now (It takes two minutes), Stash will give you $ 5 after adding $ 5 to your investment account. Subscription plans start at $ 1 per month. **
Even if you don’t have $ 300 a month to spare right now, something is better than nothing. As you make more money, try to add more and more to your retirement account. Before you know it, you could actually be on your way to becoming a true millionaire!
* For securities priced above $ 1,000, fractional purchases start at $ 0.05.
** You also bear the standard fees and costs included in the pricing of the ETFs on your account, as well as fees for various ancillary services charged by Stash and the custodian.
The Penny Hoarder is a paid affiliate / affiliate of Stash. Investment advice from Stash Investments LLC, an SEC registered investment advisor. This material is distributed for informational and educational purposes only and is not intended as investment, legal, accounting, or tax advice. Investing involves risks.
This article originally appeared on www.thepennyhoarder.com