Secret To Becoming A Millionaire: Start Saving By Age 25
It's difficult to start saving for retirement when your entry-level salary barely covers your student-loan payments. But beginning to build a nest egg during your first job is the most painless way to become a millionaire by retirement. The more time you have, the less you have to save each year since you have longer to accumulate. If you start saving for retirement at age 25, you only have to save about $4,830 annually to reach $1 million by age 65, assuming an annual return of 7 percent after fees. If you wait until age 40 to start saving, you'll need to tuck away much more: $15,240 per year, assuming the same retirement age and annual return.
Alternatively, you could start out saving slightly less and boost your savings rate as you receive raises and bonuses. The act of saving is like developing a muscle, and if you start early with small amounts, you will build the saving muscle.
Call me for a FREE evaluation of your very own financial situation,
Jesse Alvarado
(562)822-5565
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