Happy Monday! The sun is shining in the Midwest, and I am always amazed by the energy that sunlight provides me. I hope that you are letting the sun shine on you today.
I know you want to know HOW I get you $1 million dollars, right? These days, Buffet is buying Apple stock in the hopes of getting his millions, but what about yours?
Well, I have done the millionaire math and all you have to do is the ACTION (remember, it’s the year of action):
If you put $1,000 away each month in the stock market for the next 30 years, you will have $1 million dollars. Now, I’m assuming that the stock market returns 6% per year, even though historically the market has returned 7%.
Can you blame me for being a little conservative? If you missed my fun talk on market returns, check out my video.
The sad truth is that if you put that same $1,000 in a checking account every month for the same 30 years, you’d only have $360,000. Yup, I’m saying that when you invest your money and it earns what the stock market has returned historically, you can TRIPLE your money because of the power that investing provides you.
So, here’s 3 steps you can use to set yourself up for your own $1 million dollars:
- Well, it starts with being comfortable that you have 30 years left to go. I know, it sounds harsh, but if you’re over 50, I would suggest you think slightly differently about this approach. Drop me a line and let me know if you’re feeling a certain kind of way about being here 30 more years or other considerations (e.g. health issues, traveling, etc.) you’re thinking about.
- Can you allocate $1,000 every month to investing for the long-run, albeit in your retirement account and/or your brokerage? Remember, you have to take a holistic view and think about not just your 401k accounts but any accounts outside of your 401k. If the answer in “no,” then perhaps $500 is more digestible right now. And, guess what? That’s OK because you can only do what you can do – it’s just going to take you longer to get that MILLION dollars.
- Take an inventory of your current investment accounts. I mean it – if you don’t know what you’re invested in, whether inside your 401k or outside your 401k, how will you know whether you’re getting the return you need to hit the mark. One of the things MANY people do is bury their head in the sand, but this is not you – you are equipped to face the music head on. Drop me a line below if you have a good strategy for staying on top of what your investment accounts
There you have it – you’re on your way to your $1 million. I told you I’d jump start the process. Leave a comment below and share HOW you’re going to employ the above strategies.
I’m Right There With You!