Retiring As A Millionaire?
By An-Thu
Ma
Ever wonder how you can
retire by accumulating over $1 million of assets, well, the average
American thinks its impossible but think again, America is the land
of opportunity and anything is possible! With discipline and patience by
putting some income aside and with the help of a highly qualified
Financial Advisor, it is possible to accumulate over $1 million when
you retire.
Lets look at these figures
hypothetically: An individual who invests and saves up to $4,000 a
year can potentially become a millionaire in 34 years if he or she
earns 10% annually on the investment after taxes. For example, a thirty-year-old who
starts investing tomorrow with those parameters can be a potential
millionaire before the age 65.
Think about this, what could really happen if you saved and
invested more for your retirement.
Creating wealth through
investing in stocks and mutual funds has offered investors one of
the best opportunities to maintain purchasing power, grow capital
and reach long-term goals. Despite
short-term fluctuations, the financial markets have provided investors
with outstanding returns over the long-term. Since 1926, stocks have averaged
an 11% annual return and small company stocks, turned in better results
with an average 13% annual return.
The growth of your investments
can be even more impressive if you can save more and get a higher
return. Investing and
saving $10,000 a year is not an easy task, but its possible if you
make lifestyle adjustments and you’re in a certain income level. If you invest wisely and earn 10%
annually, you will have $1 million in 25 years. But what if you can’t afford to
put that $4,000 away but are able to save $1,000 a year. The investment saving is still tremendously
worthwhile. By investing
$1,000 a year at 10% annually, you will accumulate nearly $300,000
in 35 years. Although
it’s not that $1 million we’ve been discussing about, the amount is
still not so bad for retirement.
Always keep in mind, past
performance of the market is no guarantee of future results. A share of stock represents part
ownership in a company. Successful
stock investors know that wealth comes from successful businesses,
so that the opportunity for personal wealth comes from owning part
of these businesses. Currently, there are more than 42,000
stocks worldwide and more than 7,000 mutual funds from which to choose.
The bottom line is simplifying your life with professional
financial advice. In the increasingly complex world
of investing, seeking qualified professional financial investment
advice may increase your potential to achieve financial success.
Disclosure: The
examples, percentage returns and numbers provided are hypothetical
and are provided for illustrative purposes only. They are not intended to indicate
the performance of any particular investment except a historical figure
provided by a stock market index.
Anh-Thu Ma is the editor for the Finance & Investment
Section of Why Men Are and is is a MBA Graduate
with a Finance degree is also a GATOR Alumna. She is currently
with Cybervest Securities, Inc., a full
service brokerage firm where she holds the title as Director of Operations.©Anh-Thu
Ma. Why Men Are
