How to Become a Millionaire By Age (2024 Edition) 

28 is great. You're investing much earlier than most. My wife and I started at 27 and we should be able to retire somewhere between 55-60.

@@cody5596 that’s so nice to hear! Thanks for the encouragement, Happy Easter!

You are doing great! Feeling for you on the setbacks, sounds like grew fast and are incredibly resourceful and capable. Pat yourself on the back! 🎉

Congratulations on your early retirement! That's fascinating news. I'm currently in urgent need of investment advice or tips. Earlier this year, I hesitated and didn't take any action until now. However, I'm determined to try something new and am very open to various investment ideas.

Absolutely, making informed and thoughtful decisions when it comes to finances is crucial. Whether it's budgeting, investing, or managing debt, having a plan and taking the right steps can lead to financial security and success.

Absolutely! If you aim to achieve significant profits from your investments, I recommend defining your investment horizon and establishing a long-term plan.

@@AlexKowalski-mp3gu May I know the name of the financial advisor who has been helping you with your investments? If you're comfortable sharing.

The financial advisor I work with is *NICOLE ANASTASIA PLUMLEE

The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.

Mind if I ask you to recommend this particular coach to you using their service?

the stock market is at an all time high

Reaching this mile marker of nearing 60 years old I can tell you that my husband and I never thought that the financial crisis of 2008 was an easy thing to live through. Many aspects of our financial life (as well as that of most every other investor's financial life at that time) were negatively affected. Housing VALUES DROPPED, wages across the board were affected negatively, etc. It takes time for financial markets to recover, but they do. I got nervous at the time, but my very intelligent spouse told me we needed to stay the course. We did. The stock market is by nature volatile. Stress is stress. No one can get away from it. I disagree with the idea that Baby Boomers had it "easier" back then. I can tell you that no one made us multi - millionaires, but my husband and I, engineer and teacher. We did not inherit ANY money. Invest, learn how to correctly invest. I really like this channel for these reasons. Sound advice from The Money Guy team.

* SCAM ALERT * Always be careful of fake advisor tips on RU-vid! 🤦‍♂️

Investing in many sources of income that are independent on government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.

Sure, investing is essential for maintaining your financial stability, but making any kind of legitimate investment without the correct advice of a professional can result in a significant loss as well.

The financial market could be very difficult and tricky..

I barely made any profit from it. I'm off the market please

You should seek for a professional assistance if you're new in the market

I found a guy on YT, James Conole, has awesome content for ppl close to or considering retirement. He will show full walkthroughs that he did with clients considering retirement. He is a cfp

I doubt they’ll ever do a deep dive on that since that’s the point they want to manage your money.

Apparently this is pretty easy for people who accumulate wealth, given how retirees fail to spend their wealth before exiting life.

They do talk about this regularly. 3 buckets to limit tax liability. Glide path of more conservative portfolio as you get closer to retirement. Build larger cash reserves and/or bonds of 3-5 years expenses so you don’t have to sell in bad markets, etc. But you are right hasn’t been all in one episode or the focus of one single episode

And also for those of us who suffer from fear of poverty and are unable to relax. Having some math to it would help

I was 15 when I got my first job and I wish I knew what a 401k was 😭 first American gen here.

I think that's just the government's age to retire my dude, so that's what they go off

Average marketplace healthcare premium for a 60 year old is more than $1000. Not to mention that most people are better off delaying social security til at least 67. They focus on 65 because they are grounded in reality, and retiring responsibly and safely is significantly easier at 65 than it is at 60.

I'm with you there. Yes, 65 is safer. Yes 65 (changing to 67?) is full retirement age for social security. Maybe 65 was in reference to medicare? I don't that age. Regardless, I think there's value in trying to be ready sooner if one can invest adequately. Worst case scenario, we would have more money to retire at 65.

@aerated I have every intention of retiring in my 50s, so does my wife. May not happen, but we are more then on track… set the bar high.

Just adjust your age then. If you want to retire at 55 instead of 65 for example just add 10 years to your current age

I mean the song it originated from is from 2011 lol

One million probably won’t make you feel rich or wealthy in 40 years but you’re still going to be well ahead of your peers. I would have to guess that you will still be able to live a modest, comfortable life and that should certainly give some peace of mind. We have to hope our uncontrolled government spending doesn’t erode all of our purchasing power through inflation.

Same here - my husband and I bootstrapped it in our twenty and vacations were weekend trips to friends’ houses. Now we are in our thirties and started doing longer trips to exotic places. All with cash. Just glad to have found the Money Guys and Dave Ramsey in my late twenties

@@alexanderwalls4466 that is awesome, I got into financial RU-vidrs in Feb of last year and we have made awesome progress since then. Previously we would use a bonus or no interest financing on trips. This year we cash flowed a 3 week vacation to NZ. We were already on a good path, but have increased our investments by 10% and are currently on track to hit 25% in about a year since we will have all of my wife’s student loans paid off. I found Dave first, but resonated more with MoneyGuy principles.

Bumping the comment so more people can see it

You must correct deposits by year end. Not April 15. You can still invest up to April 15 for last year but cannot correct overfunding after Dec 31. And significant penalties.

@@WallaceDunn: Good to know. Thank you! But how does the correction work?

Excellent question. I'm trying to be careful not to do this in my 457b, and calling them they have no automatic or manual safeguards, it's all up to the saver 😮

As long as you are contributing 25% to your retirement that sounds like a great situation!

@@daundredemars5028 I'm not, but I'm 26! I have enough to stop contributing and have 1.5 million dollars! I'm literally wearing a shirt that says "blessed," and I am!

Fair! I know a few people in my area who would like to downsize but would be paying more for less if they do because the market has changed so much since they bought. Combine that with limited inventory, it’s just not going to work. Kinda weird times!

Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .

Exactly ! That's my major concern and what lucrative investment can one venture into with the current rise in economic downturn

In fact, I had no prior experience or understanding when I began investing in 2018, but by the end of 2019, I had made a profit of almost $750k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.

​ *@lilyhershey1* That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?

Gertrude Margaret Quinto is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

Well if you put 11k that’s not enough because that’s only 2yrs if you put 12k so that would be only 6k for 2yrs

It’s $100-200/mo from 20-62

Let me give you the correct answer: yes. But don’t limit yourself to that. Aim higher. I think the bigger point is to realize the massive difference it takes to hit the same milestone the longer you wait.

It's never too late. Step by step you can turn things around. You got this!!

Most people have done those things and now you're ahead of the curve taking action and making progress! Keep on the path !

Soooo true. So many people say "I don't have any debt". But they also don't own a house. I have debt, but it's my mortgage...

Sorry about the medical situation! On the bright side, your $140K, without another contribution, will grow to $2.44 million in 40 years if you average 10% return.

Total market index probably

Invest in the stock market, think the S&P 500 index

Unfortunately, almost all these channels use the term “savings”, when they should be using ‘investing’. The S&P 500 has averaged 10.37% annual return since its inception in 1957. I went 100% S&P 500 in 1990 and never looked back.

Low cost index fund are a good place to start

To be clear a million at 65 wont be enough to retire. Make sure you do the math for what you will actually need and make that your goal. Still very easy to hit but 1 million is just the start.

Yes, this.

I can't get the math to work out on their lump sum numbers, I think they are wrong.

​@@bensproat1150, they might be assuming a 10% rate of return

They also don’t adjust for inflation. 1 million 30 years from now will probably net an inflation adjusted income of less than 20k per year. That plus social security is a very modest living.

🤣🤣

Minus the weird conspiracy junk

Incredible work man!

They really don’t talk much about pensions, but you are way, Waaay ahead of the pack if you have one. I include the match as part of the 20% (employer 5% + you 15%). Save/invest as much as you can and as you get 5 years out from retirement, figure out what you need to live on and with the pension, when you can retire. Can you invest in the S&P500 where you live?

This is where you're better off just playing with an investment calculator using the numbers that are relevant for you.

Took right at 2 years for me. Hit 100k at end of July 2021. Hit 150k at end of July 2023. I’m already at 185k now, but you have to keep in mind that such short term changes GREATLY depends on the market, which has been on fire since the initial crash from COVID. Took me 6 years to get to my first 100k invested, but i also saved up 80k for a down payment during that time…

Edelman financial doesn’t have a minimum…or not sure, check them out to verify.

Better than 0 million that’s for sure

It’s crazy how inept the majority of people are at interpretation statistics

Congratulations! Great work!

Gross

Only applies on net if its a taxable account

Honestly, do whichever brings yoy joy

Bitcoin

The markets may be down when you have your emergency

Emergency fund is insurance for your investments so you don’t sell when market is down say 30%

And, if it’s in a 401K, you won’t pay a 10% penalty on top.

"Sequence risk"

The stats they gave were from a survey of their clients (meaning they’ve at least reached that critical mass they talk about where it’s time to get a financial advisor, think 600k+ to multi millionaires). So out of their clients, that’s how much they have in their emergency fund. You’re right that the average person falls into the other stat you mentioned.

@@kennycrump ty. I was confused

Also trying to find a home for 2 adults and a child rent it easily over 25% in California with a household monthly income of 5,000$

Combine your gross incomes and try to invest 20% of that number. Hopefully, your employer matches some. Put it all in the S&P 500 and don’t move it around no matter what the market does.

Why string it out?

Because we used the other half of the money as part of our down payment on something else. We got a 2.49% interest rate. @@chemquests We can pay off the car in full but we want to use the money for other things.

The 3 in 20-3-8 is 3 years. So the payment should be less than 8% for a 3 year loan term length.

Well, we didn't do a 3 year loan, the payment is about 3% of our gross income (not including insurance) and we choose not to pay off the car right now. @@margaretbehre6461

@@chemquests We took the other 50% and invested it for a higher ROI. We can pay off the car today but investing it is better for us. At 2.49% loan it is practically free money. The interest payment is $44 a month. That is not a lot.

With a conservative 8% rate of return over the next 40 years, that 70k will turn into $1.7 million

No

I've learned that when playing around with a compound interest calculator, to reduce the anticipated return by 2-3% (eg, using a 7 or 8% return value even though you anticipate a 10% actual return) that will account for inflation over the years and give you a total amount in today's dollars that reflect's today's cost of living.

You are only just getting started. 25 is a great age to be. Also it's important to define what's "enough" otherwise we will be continuously chasing a moving goal post.

Sounds like an overachiever that is on his way to retirement at 55! How much are you contributing monthly and where is it invested?

A home is a lifestyle investment and net returns after all the mintainance costs, loan interest, insurance, and property taxes are accounted for are negligible in most cases. If you have a majority of your networth tied up in your personal residence, you aren't wealthy. So let's do what you say and see it as an investment and diversification..... a personal residence is a highly illiquid and undiversified asset.... if someone came to you and said, " I want to put 70-90% of my networth into an illiquid and undiversified investment." Without you knowing it was a personal residence, I bet you would be screaming "no! That's so risky!" But they say don't worry, there isn't much risk because it's a bond paying 3%!.... your answer would still be a hard no... I'll keep home equity to sub 10-15% of my networth because I want the vast majority of my networth to be investments that return 4-6% above inflation on average instead of right around inflation like most personal residences.

I feel like when talking about these young ages we need to be talking about becoming a 3 millionaire or maybe 4 since that is what will mean the same thing as 1 millionaire by the time we retire.

That’s why you need bitcoin. 100% YOY on average. Deflationary asset, great long term hold. It’s very volatile so not for short term saving.

@@darthstrukt I doubt we will see eye to eye on this. Bitcoin just doesn't have the track record to back these claims. Good luck holding onto your bitcoin, I genuinely wish you the best. I will stay out of that game though.

Nobody knows that one because the few people who do it got really lucky and did something unique. Becoming a millionaire is trivial and easy to do, but it doesn't scale up to ti billionaire status for people with a human-life time horizon.

Marry someone with 2 billion dollars.

Create

Any funds in stocks with monthly dividends. That can help grow the amounts over time with reinvesting the dividends for more shares and dividends.

If you're in that high of a tax rate now, you should be more heavily in tax-deferred plans anyway. For you, the Roth is only beneficial if you will be in a higher tax bracket in retirement than you are now.

@@papasquat355 I believe we entered the 24% tax bracket. We are also maxing out 401k and HSA

@@papasquat355The OP could be in his 20s or 30s - maybe even very likely if both he and his wife do a lot of extra work. There are a lot of good reasons to choose Roth, even with higher income. Perhaps you don’t want required distributions, or just like that you can put more in than with traditional

For the future, you are able to contribute to an IRA for a previous year until April 15th. ie contribute to 2023 IRA until April 15 2024. You may want to wait until Jan 2025 to contribute to a 2024 IRA to make sure you are not above the income threshold before you fund the IRA. Also if you have contributed to a traditional 401k these dollars are subtracted from your MAGI (modified adjusted gross income). So if you haven't maxed that out yet, then you can add more money to trad 401k to lower your income. (I know I have heard Bo say not to take less income in some video at some point).

My wife and I spend maybe 1-2k a year on vacations. What the heck are you spending 20k on?

We live in Florida and typically do three cruises a year each cruise is usually 6k plus we’ve done a two week vacation to Dubai and Maldives that cost approximately 16k by itself lol

@@jamesr5735 then quit complaining and make the change yourself. Don't say "I wish..." when the only thing in your way is yourself.

@@splunk17 whose complaining bedside sock spunk

"I wish my vacations only cost $3500" is complaining...@@jamesr5735

Disagree. A minor number of billionaire and multi-millionaire investors can skew up the average/mean from a whole lot of people with savings below maybe $100K. Using the middle/median number shows you equal number of investors above and below that median value.

You can’t spend your house or car so I wouldn’t count it but you can is you want.

Our primary residence has equity so we count it. The car has value so we count it too. @@christinewallace9251 There is a certain definition for net worth. Otherwise, can I decide to exclude my mortgage in the calculation since I don't want to count it?....

Technically, yes. Realistically, no.

Why not?

It counts for your networth, but you don't use your networth to determine if you can afford to retire or not.

Tbh it'd just be a lot simpler if they calculated everything using a real rate of return rather than a nominal rate of return. Then "$1mm" would be equivalent to "$1mm with todays purchasing power".

But the average person today barely has $100k, so $1M is a huge improvement!

@@CageMatchRunnerUptbh I don’t know the difference between the two.

@@chemquestssure I agree. But if someone is already on the program and is a mutant (or a scenario of someone following them starting at different ages) then they should make a video about such people and what can happen to them.

@@NiranjanBendre Serious follow-up question: if someone had $10M and stuck to the 4% withdrawl rule, that would be spending $400k per year without reducing the principal balance at all. I definitely want to earn as much as possible, but I don't think needing $400k+/yr is a reasonable benchmark for a comfortable life, even accounting for inflation over 2-3 decades. Also, saving $3,400 a month as a 20 year old would be like 75-100% of the average wage for that decade, definitely not realistic unless they are already independently wealthy or in the top 0.1% of income earners.

hello, 20's here

False

I’m sure there are plenty of 20 something’s listening, myself included! For 5 more months at least, then I’ll be 30 haha

Hey I am 30 and present bro🤣

Same here, with my current portfolio made from my investments with my personal financial advisor I totally agree with you

Wow! Kind of in shock you mentioned expert,elizabeth ann graney. What a coincidence!!

Any specific guide. I'm from Georgia how do I go about this? I think I'm interested how can I get in touch with mrs Elizabeth Ann Graney

Sure! She interacts on what's Apk using the digit below👇🏻

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I would be to if I was charging people 1-2% of their net worth every year for simple asset allocation.