Why don’t you want $743,000?

Jim_SamsonHave you ever thought about retiring with the perfect house, a nice collection of sports cars in your drive, and the ability to fly anywhere you want for vacation?

Your current little chunk of retirement savings won’t allow you to retire the way you want; not unless you keep funneling your hard-earned money into a savings account that has miniscule potential of any real growth.

By ignoring this secret, you could be missing out on accounts worth $294k, $314k, or $743k.

I want to show you how you can take advantage of this simple trick, while maintaining a comfortable investment amount that won’t leave you struggling in an emergency.

We all want to retire in comfort. It must be one of the most common dreams among Americans today.

I think the difference for people in the idea of retirement is the word comfort.

Comfort takes on many different forms for different people. It could mean having all your bills covered throughout retirement, being able to travel the world whenever you please, or just being able to sit on the beach for as long as you like.

There are many tools available for you that could achieve different levels of comfort, but they all appear too complicated for you to wrap your head around, so you’re forced to turn to a “specialist.”

Trust me, I’ve studied many different retirement techniques, and they all seem to be overcomplicated. That was until I found this simple technique that anybody can use.

It all has to do with compound interest. Compound interest is a game-changer when it comes to retirement.

The basic principle of it is that there’s interest paid to you on your principal investment and interest paid to you on the interest amount that you accrue; so, your money is always working to make more money.

Investors don’t have a whole lot of control when it comes to the growth of their money: interest rates fluctuate, markets sink, and the amount you invest can change due to unforeseen circumstance.

There is one aspect that investors have control of, though: Time.

Time is a very powerful tool that, if used correctly, can make an extreme difference in the amount of money you have access to when you’re ready to retire.

Look at it like this: if you were to invest $10,000 into an account that utilizes compound interest, you’d have access to the following returns after 30, 40, and 50 years:

  • If interest rate is 7%, $10,000 invested would become: $70,000 after 30 years, $149,000 after 40 years, $294,000 after 50 years.
  • If interest rate is 9%, $10,000 invested would become: $132,000 after 30 years, $314,000 after 40 years, and $743,000 after 50 years.

There are many ways you can expose yourself to compound interest, but as I’ve said, it can all seem a little complicated to just jump into head-first.

But there’s a simple way that you can handle all of this on your own. You don’t have to open any special retirement account, or talk to an investment advisor—it’s all immediately available to you, and you can start today.

Before I jump into this simple method, I’d first like to squash any negative ideas about the stock market. Most people say, “I don’t go near stocks, they’re dangerous.” The truth of the matter is that if you have a retirement account, you own stocks.

We’re going to be utilizing a certain form of stocks. You’re not going to be buying and selling individual stocks, you’re just going to be using the market for direct access to the best retirement method that uses compound interest

And the best part about it: you don’t get a tax penalty for pulling your money out early. It’s always accessible if you decide to withdraw.

Like I said, we’re not buying and selling individual stocks, we’re going to be using groups of stocks, called an ETF (Exchange Traded Fund).

These ETFs can be comprised of just a few stocks or the whole market, but the most important thing to keep in mind is that you’ll be diversifying your portfolio, while only having to invest in one account.

These specific ETFs are labeled index funds, and they cover vast majorities of the market while exposing your money to the strong gainers.

More specifically, there are 4 index funds that have had tremendous growth over the past couple of years, and they’d be ideal for the type of investment account you’re looking for.

These funds are:

  • The Vanguard 500 Index Fund (VOO), which has gained 9.3% in the past 3 month
  • The SPDR S&P 500 ETF (SPY), which has also seen gains of 9.3% in the same time period
  • The Vanguard Total Stock Market Index Fund (VITSX), which has had a nice 9.8% return in the past 3 months
  • The Vanguard Total Stock Market ETF (VTI), which has gained a very profitable 10.2% return in that same 3 months

These funds are ideal if you’re looking to achieve those comfortable retirement goals, while allowing your money to grow to its full potential.

Since these funds naturally utilize compound interest, you make a return on both your initial investment, and any increase you make as the ETF rises.

By using this method, you’ll be living the retirement life you’ve always dreamed of in no time.

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