Making the Most of One Thousand Paychecks
Retiring a millionaire may be simpler than you think. Take a look. If you enter the workforce at 25 years old, get paid twice a month, and strive to retire at 65 years old, you can expect to receive roughly 1,000 paychecks over your career.
Retiring a millionaire may be simpler than you think. Take a look.
If you enter the workforce at 25 years old, get paid twice a month, and strive to retire at 65 years old, you can expect to receive roughly 1,000 paychecks over your career. What you choose to do with those paychecks may greatly impact your financial situation upon retirement. While your salary may vary from that of your neighbor, in theory, you both have 24 hours in a day and you both have roughly 24 paychecks in a year to help you achieve your long-term financial goals. In other words, don’t let the amount you are able to invest today, keep you from practicing the behavior that may allow you to live a rich life in the future.
The Beanstox Automated Investing app has been updated with significant improvements to enhance overall app performance and client experience. Head to the app store to download today.
Your very first paycheck…
A milestone you should be proud of. Treat yourself… but also treat your future self. Just $200 from your first paycheck could be worth over $4,000 at retirement. Being able to see and feel your progress by starting early will reinforce this wealth-building habit. Having trouble determining how much you should be investing? Beanstox Chairman and co-owner, Kevin O’Leary, recommends starting with 10% of your take home pay.
Your last paycheck…
If you continued putting away $200 per paycheck until 65 years old, this final $200 deposit could bring your lifetime contributions to $200,000 which could result in portfolio gains of over $1,100,000 for a total portfolio value of over $1,300,000!
Perspective…
By maintaining this $200 habit:
Your hypothetical portfolio could return $205 in your first year.
Your hypothetical portfolio could return roughly $100,000 in year 40 alone.
Now consider what you could achieve through investing if you set aside more money from each paycheck or increase your contributions as your salary increases. The sky is the limit.
Getting started…
If you didn’t happen to start your investing journey with your first paycheck, you are not alone! If that’s the case, it may be helpful to remember this old proverb.
“The best time to plant a tree is 20 years ago. The second-best time is today.”
Here’s another example. This employee didn’t start investing until she was 33. To make up for lost time, she decided to contribute $300 per paycheck instead of the $200 amount from the previous scenario. With 800 paychecks left before retirement, she could still find herself with a portfolio worth more than $1 million by 65.
How many paychecks do you have left?
If you’re looking to start investing, Beanstox can help you take that first step. Download the app. We’ll help you set up recurring investments into a portfolio that fits your financial goals. It’s Seriously Simple Investing.
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Get Started With Beanstox
Set 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!
