GOLDEN VALLEY, Minn. - Like many things in life, the sooner you get started the better off you will be. This definitely holds true with investing. Dan Ament, Financial Advisor with Morgan Stanley is with us to discuss a millennial money hack – how you can become a ‘millionaire’.
Want To Be a Millionaire?
Want a MILLION dollars? For a 25 yr. old to accumulate $1 million by age 67 (42 years), here's what he or she would need to invest.
- At a 4% return - $9,174 / yr.
- At a 6% return - $5,365 / yr.
- At a 8% return - $1,682 / yr.
Dan implores millennial investors to take the long view, and not become overly distracted or concerned about the short-term headlines impacting the market. Numbers will naturally dip during the inevitable market pullbacks, corrections or bear markets.
Remember Economics 101: Economic growth and the stock market generally follow one another. Yes, recessions do happen and will occur again, but over time the U.S. and global economies have proved resilient and have grown consistently when viewed over years, not days or months.
The Bottom line for young investors? Get your head in the game, be frugal, don’t always follow the herd, follow your plan, know you will make mistakes … .but learn from them and last but not least, diversify. It’s not as difficult as you might think!
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