Your Path to a Million by 65
Waiting to invest is easy to do. You might think there’s plenty of time, or that you’ll have more money to invest later, but that’s a common trap. Fortunately, Beanstox makes it just as easy to start now!
Consider this. Even if you do increase your income later in life, it doesn’t guarantee an easier path to building wealth than starting now with smaller amounts of money, thanks to the power of compounding! As Kevin O’Leary, Beanstox chairman and co-owner, puts it, “Waiting to double your income may unexpectedly triple your efforts.”
Let’s dive into the data to see the real impact of an early start.
Straight Talk on Starting Sooner
The math is straightforward: the earlier you begin, the smaller the monthly amount you’ll need to invest to reach a million dollars by the time you retire. Take a look at the chart below illustrating the monthly investment needed at various starting ages to hit this goal by 65. The striking difference in dollar amounts underscores a crucial point: it’s not just about the number of months you have to invest; it’s about the amount of time your investments have to grow through the powerful effect of compounding.
Mr. Wonderful’s Example:
Starting now, instead of waiting for a higher salary, can make your path to wealth an unexpectedly lighter lift. The numbers paint a clear picture. A 25-year-old who commits to investing $381 each month is on a track to accumulate a million dollars by age 65, assuming a steady 7% return. Compare this to a 40-year-old who must invest $1,234 monthly to reach the same goal. The stark contrast shows that the 40-year-old must invest more than three times the monthly amount of the 25-year-old. This head start could lead to a portfolio that doesn’t just increase, but potentially multiplies as you near the age of retirement.
Getting Started Now
It might feel tough to start investing when you’re young. Maybe money’s tight, but even a little bit saved now could mean a whole lot more later. And remember, we’re not talking about stuffing money under a mattress. Investing it means it’s working for you, potentially growing every year.
Even if you’re not in your 20s or 30s, it’s still worth starting. The point is to get going as soon as you can. It’s about setting yourself up for a better future, with the freedom and security that come from having a growing portfolio. Download Beanstox and set up your automated recurring deposits today!
Disclosures:
*This hypothetical example of compounding assumes the funds stay invested throughout the investment period. There are risks and limitations in using hypothetical projections in making investment decisions. The projections are provided for illustrative purposes, and are not indicative of past performance of any Beanstox portfolio or any client’s experience using the Beanstox App. The projections do not reflect fees, or the cost associated with investing. Content is meant to provide education only, and it is not intended to be taken as advice or a recommendation for any specific investment product or strategy.