If you’re in your early or mid-20s, you have a golden opportunity, and here are four ways you can turn that opportunity from gold to platinum — and maybe even to titanium. Here are a few steps for young investors to follow to, potentially, retire rich:
Real life provides us with literally millions of individual financial scenarios, making it hard to dish out blanket investment advice.
Read: The limit for 401 contributions will jump nearly 10% in 2023, but it’s not always a good idea to max out your retirement investments At age 65, you start your retirement with about $1.68 million, and over the next 30 years you can expect to have $2.62 million available to withdraw, assuming you take out 4% of your portfolio each year and leave the rest to grow at 6%.
Go the rest of the distance, and probably beyond, by diversifying into asset classes with long histories of outperforming the S&P 500.Table 2 That certainly should qualify as platinum. Beyond that, there’s another level I sometimes think of as titanium, at which you earn 9% a year while you’re working and 7% during 30 years of retirement.