Simply contributing the current annual maximum to your Roth IRA of $6,000 from age 22 to age 67 makes a world of difference for two reasons.
First, Roth funds are shielded from future taxes: money in a Roth has already been taxed and will never be taxed again.
Next, if you choose to invest in low-cost index funds in your Roth, the account won't require any ongoing maintenance and you won't need to spend any time picking and choosing investments.
Make the annual Roth contribution a habit as early on in the calendar year as possible and make sure it happens every year.
MORE IDEAS FROM How to retire with $3M on a $70,000 salary
This money will grow tax-deferred: that is, you'll receive a tax deduction today and won't pay taxes again until you withdraw the money in retirement.
If we take the two intermediate-return scenarios, not only would you end up with $3 million, you would end up with far more. This is simply due to the power of compound interest applied over long periods of time. In other words, the sooner you start investing money in tax-advantaged vehicles, the sooner you'll see a runaway compounding effect.
A strong, healthy, and long-lasting marriage has some key ingredients that make it work: Commitment, Hard Work, Consistency, and Intentionality.
The same ingredients are required for building wealth when one is with a life partner, planning to spend your entire life together.
Life partners have to invest in each other.
Free food, Beer taps and ping pong games in the break room do not help employees feel connected with the company's vision, mission or direction.
Employees prefer equity/stock compensation, the non-cash payout they get by being allocated restricted stock options.
Employees then become partial owners of the company, vested into how it performs, increasing their motivation to be more productive and effective.
Investing is about laying out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.
Most of the time, this is best achieved through the acquisition of productive assets.
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