The £80‑a-week investment strategy that could make you a millionaire by retirement
Many of us dream of becoming millionaires. Investment industry experts believe this dream can be achieved through relatively simple steps. According to them, saving just £80 a week might be key. The question is when to start.
18 April 2024 11:32
Reaching a net worth of a million dollars by retirement seems easy for experts quoted by Bloomberg. They emphasize that it is enough to start investing at the right moment of one's life, regularly setting aside the indicated amount of money and showing determination in this activity.
One must remember to save
The information presented by the USA site can be particularly useful for residents of the United States but can also serve as motivation. What do financiers advise as the first step? Start saving, preferably before reaching the age of 25. According to the Milken Institute, this gives a chance to accumulate adequate retirement funds amounting to £882 000.
How much needs to be saved? Experts have estimated that £80 a week invested in the market at an annual gain of 7 percent can bring impressive savings. Under the right conditions, this can achieve millionaire status by age 65.
Bloomberg notes that following the path recommended by professionals can be a challenge for young people, especially considering that many students have educational loans. Therefore, setting aside £320 a month might seem difficult.
Invest 15 percent of your income
Fidelity, a company specializing in financial services, presents different calculations. In their opinion, individuals investing 15 percent of their income starting at age 25 can retire by age 67. The condition? Half of the invested funds should be allocated to stocks.
The company adds that starting investing as early as possible is crucial. By saving £80 a week starting from age 35, one can accumulate up to £240,000 by age 65. However, there is still a long way to go before reaching millionaire status.
