Every single one of you can find $100. Get on a written budget and you can find $100 in there. What do you spend $100 on, latte-breath?
For someone who makes the median income, this is a mere 2.5% of your income. Assuming you don't get a raise in 40 years - and let's be honest, if you sit at the average and don't get a raise in 40 years, you're a loser - you can still do this.
I know what some of you are thinking.
1. But Dave, I can't expect 12% returns!
Okay. While my growth stock mutual funds have averaged 12% - some years 6%, some years 18%, and while past performance is the best, yet still unreliable indicator of future returns, let's say 9%. Put $200 in then. Put $300 when you turn 30. Put $400 when you turn 40. It's still way less than you should invest.
2. But Dave, $1M won't be worth as much in 40 years!
Guess what, it's still worth INFINITELY MORE than you're going to save!
Yeah, so that will only be worth half a million today in 40 years. Your wages should grow with inflation too. So put $200 in. Put $300 in. Still way less than you could or should invest.
Smart people, including posters on this message board, have suggested 15% towards retirement. That would be $600 a month for the median American, and multiple millions of dollars to retire on. Now we're playing with fire!
Even on FEDERAL MINIMUM WAGE, that 15% would be $200 a month! And let's be honest, if you don't move up from the federal minimum wage in your career, you're a mega loser - but you can still do this!
And yet, so many of you will wait on the government, which is well known for its ability to handle money, to feed you. Some will take your retirement and drive it around to impress people at a stoplight you'll never meet. BOTTOM LINE - There is ABSOLUTELY! NO! EXCUSE! not to retire a millionaire, America!