Sound Investing 5 years of investing and you can become a multi-millionaire
Young investors can build a retirement worth up to $50 million from an investment of just $6,000 per year for the first 5 years of contributions to a Roth IRA or Roth 401(k). Paul Merriman, Chris Pedersen and Daryl Bahls show you how — with or without the help of parents or grandparents.
Paul discusses a strategy for young children that requires monthly contributions of just $25 to fund the $6,000 investment in early-Roth IRA or Roth 401(k), and each shares his recommendation for young investors after the first 5 years. They address the challenge of getting a young investor to “stay the course” when the market is in decline, and Paul shares the story of an uncle who requires three promises from family members he helps get started in investing for retirement.
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“5 Years Can Make You a Multi-Millionaire” shows the impact of an all-equity portfolio using Small Cap Value or a 50/50 balance of Small Cap Value and the S&P 500.
This new table shows the percentage of time that Small Cap Value makes long term returns of 12% to more than 14%.
See video, “How To Use Portfolio Visualizer” by Chris Pedersen