Odds of Being A Milionaire (pay, rent, account, increase)
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Anyone can become a millionaire with time. I tell my kids all you need to do is invest $2,000 a year from the time they are 18 or so and do that for the next 6 years. They can choose to keep investing or quit. Then let that money ride. Do not borrow on it, do not sell off the shares, just let it ride. It does not even matter if it is in a IRA or a 401K, just let time do its thing. When they retire at age 65 they will have become worth over $1million.
For someone that saves just $2,000 a year from age 20 and does that for 6 years, letting it build will make it. But get this, for someone that waits to invest untill they are 26, they will need to save the same $2,000 a year until they hit age 65 to make up the lost time that the money could have grown.
The best situation would be to start at age 20 or 18 if you can and never stop investing that $2,000 amount. You would have over $2,500,000 by the time you hit 65.
Realize that a million is not what it used to be. My wife and I can spend $1million in 8 years. We do that now. To retire we are building a net worth that will be $5 million when we are done or more if we do better with our portfolio. Our financial planner has helped us a lot toward our goals. You always need good coaches on your team.
A million dollars is not much now............I know a lot of contractors........all of them are millionaires........just with their equipment.
Why does this qualifier have to be tossed out EVERY time the word "millionaire" is brought up? Just five percent of the U.S. population in 2014 had achieved that level of wealth. I'd say that for 95% of Americans, it's still A pretty significant milestone - which is all the OP was suggesting.
they would rather spend money on things they can get today though... instant gratification is why millennials have lower odds today than before.
Quote:
oung people (generally defined here as those under 40) haven’t been working for many years, so they don’t have an opportunity to save as much; they also need to make investments in things like education and new home ownership.
im pretty sure past generations had to get an education and buy a home too... plus they didnt need to live at home either for an extra decade... they started families younger too which is a money sink
The article is weirdly written and poorly worded. Here's the first sentence:
What in the H is the author trying to say? I get the feeling they have no idea how statistics or probabilities work, but they were asked to write an article on it anyway. The headline is ultra click-baity, like the non-articles that are all over social media.
This is a sad thing. Even for the Washington Post, many of the experienced reporters and writers have been replaced by 20 something, know nothing, kids who work cheap.
I can believe the 1 in 7 statistic. Really, at the ages of 55-65, you've likely been paying on a mortgage for 30 years and have built up a lot of equity or have your home completely paid off. When you factor in housing appreciation, combined with even modest retirement accounts, hitting $1 million isn't that difficult really.
Case in point, my aunt and uncle bought a home in Naperville IL back in the 80's, for around $225k. That home appreciated dramatically, and when they sold it 20 years later, it was worth $700k, and it was paid off.
Combine that with their retirement accounts, and they were well over $1 million net worth.
The downside however, is that even though a million dollars isn't all that difficult to achieve over your lifetime anymore, it doesn't go as far as it used to, either.
how far a million goes isnt the issue that some want to make it out to really...
but i like how the author of paper like to project their own issues onto an entire generation...
millennials are around 20-30 right now and they say they have lower odds of getting to a million by 65? they still have 30 years to do it with! does they author not know how compounding works? they could get there in the last 20 years if they put their mind to it
also the op saying he doesnt see that many people as millionaires just means his take on it is a million in liquid funds, and not counting property...
a millionaire to me is just an everyday middle class income that got saved and invested over their career... nothing to special about it outside their self control over buying junk
All I'm seeing the article say is that older people have saved all their lives. Nobody hands the kids a million bucks as they graduate college and it is going to take them decades to save it up, just like the retired millionaires did.
Why does this qualifier have to be tossed out EVERY time the word "millionaire" is brought up? Just five percent of the U.S. population in 2014 had achieved that level of wealth. I'd say that for 95% of Americans, it's still A pretty significant milestone - which is all the OP was suggesting.
It is one of the fastest growth segments within the middle class. Not hard to do, just use discipline to get there. Becoming a Millionaire is more of a choice than anything else.
Why do you feel sorry for the millennials? Unemployment is really low. When I was a young man starting to look for jobs, the unemployment rate in my area was 25%. Uncle Sam also took two years of my life. No one is currently being drafted. More and more great jobs are opening up as the boomers retire. There are countless career areas when labor shortages are predicted to become acute.
^^^This.
I graduated college in 1992 with a degree from a very good school in a strong technical major known for being a good career and I got lucky and was one of about 30% of my graduating class that got a job coming out of school.
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