Let’s do this in two minutes.
Here’s some quick math to help you with your investing goals. No bullshit, no preamble. Share this with your friends to show them how easy retirement and investing can be. At 29, I’m better prepared than some 50-year-olds I know. Here’s how.
The math here assumes you’re 30 and will invest small amounts steadily until 65. That’s 35 years of growth. I invest aggressively in index funds, and I’ve been averaging around 7% annually. Let’s see what investing tiny amounts every day can do from 30-65 at 7% growth.
• $1/day (or $365/year) = $53,988 at 65
• $2/day (or $730/year) = $107,976 at 65
• $5/day (or $1,825/year) = $269,942 at 65
• $10/day (or $3,650/year) = $539,884 at 65
• $20/day (or $7,300/year) = $1,079,768 at 65
That’s bonkers, right? Every $1/day you put away can add $50,000+ to your retirement account? Time to bust out the ol’ piggy bank!
Depending on your goals, you might want to invest differently, so investigate options yourself and see if you can find better. All I know is I don’t worry about retirement anymore. With ~$20,000 in that index fund already and $10/day contributions, I’m anticipating ~$740,000 at 65.
Ready to do this? Calculate your numbers here, and comment with your findings below!
Not bad for a 2-minute read, huh?