When the show Who Wants to be a Millionaire first came out, I remember being glued to the television every time it was on. I lived and died with every answer and the intense music only added to the drama for me. When to use which life line made it more exciting. I had all that emotional investment just for the hope to see somebody I didn’t know win a million dollars. That seems kind of ludicrous looking back. If you look at the odds, becoming a millionaire from a gameshow isn’t very likely. What would it take to become a millionaire the old fashioned way of saving and using compounding returns and the time value of money? I know it’s less exciting than the gameshow way, but bear with me.
The table below illustrates how much you would have to save on a monthly basis to have $1,000,000 by the time you reach age 65. You can see the power of starting early. Many times saving in a 401k or a Roth IRA can be attractive savings options because they allow you to set aside money that is designated for retirement so you won’t be tempted to buy that fancy new car using your nest egg. There is more to investing than just accumulating, so working with an advisor who knows your goals, tax situation, risk tolerance, and willingness to save will help put you on a good path to save the right amounts in the right type of accounts (and be able to let you know if a million dollars is even enough for you to live the retirement you want).
You have to start somewhere and having money invested over a long period of time can help minimize the impact of unforeseen circumstances. Work with a professional you trust. Those two factors can be your “lifelines” when it comes to your financial success! If you are looking for guidance to get started with a professionally managed portfolio, visit https://www.pilotportfolioseries.com/ for more information.
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