The Power of Compounding: Building Wealth After 50

This week instead of a story, I’m going to share something that I’m seeing more and more often.

Turning 50. For whatever reason, when a person turns 50 it’s been my experience that it’s generally the time they decide to get serious about their finances.

“Am I behind?”

“How much do I need to be saving?”

“When can I actually retire?”

If you’re reading this email, there’s a good chance that you will or have experienced these same questions—and for the sake of this email, let’s assume that today’s your 50th Birthday! 🎈🎈🎈

After careful calculations from your favorite financial planner, it’s estimated that you will need an additional $1,000,000 to become financially independent by age 62.

Assuming a 7.8% rate of return, you will need to invest:

  • $4,215/mo if you are starting at zero
  • $2,590/mo if you are starting at $250,000 [$250k to $1.25m]
  • $965/mo if you are starting at $500,000 [$500k to $1.5m]
  • $659/mo if you are starting at $750,000 [$750k to $1.75m]
  • NOTHING if you already have $1,000,000 [$1m to $2m]

Is $1M the right number for you? I have no idea. But what we discover quickly in working together is how to figure out what your number is and to build a plan from where you are today to achieve that specific number.

$1,000,000 invested today, compounding at 7.8% annually, would be $2,542,050 at age 62 [12 years].

I don’t know how much you need to become financially independent, that’s something we’ll talk about—however, I certainly do know how to help you figure out your number and how to build a plan to achieve that number.

My question for you today is: “Why would you wait?”

The best time for you to get a financial plan may have been 10 years ago, but the second best time is today. A financial plan will allow you to:

  • Become financially independent sooner
  • Save & invest LESS over the life of your plan
  • Spend MORE time and money on the fun & fulfilling aspects of life and the things you value most

Whether you’re coming up on 50, 50 today, or you’ve already celebrated 50, please don’t let more time pass and take action today to start efficiently building your nest egg to fuel your future dreams.

Compounding (time) has the potential to do a substantial amount of the work on your behalf.

If you or someone you’re close to could use help aligning their finances and establishing a financial plan, please reach out to us, we’re accepting new clients and eager to help. 

Cheers, Nic

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