Kenneth_2003 said:

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Several months ago a younger new hire asked me if I thought I'd be a millionaire before I retire.

A bit about him... 25 years old (now), HS diploma, older siblings, but no father figure present, and mom isn't much of an influence.

So I chuckled a little at the question and told him that yes I certainly do expect to not just be a millionaire but do be so several times over. I actually crossed 7 figures in 401(k), IRA, and after tax brokerage earlier last year. That's still independent of checking, savings, emergency fund, and illiquid home. I've tried several times to talk him into getting that 401(k) setup at work if only to realize that he's leaving 4% on the table that the company is freely willing to give him.

So last Friday I caught him again and showed him a spreadsheet.

• Again he's 25 so 40 year investment horizon, retirement @ 65
  Starting balance $0
• $500 per month (no breakdown of match vs individual portion) KISS
• 8% annual rate of return (0.66% monthly)
• 40 year investment horizon

ZERO Annual Investment increase

• 7 figure balance early in year 34
• $1,745,500 @ 40 years, retirement
• $240,000 personal contribution
• $1,505,500 from compounding growth

1.5% Annual Investment Increase

• 7 figure balance early in year 32
• $2,056,000 @ 40 years, retirement
• $325,600 personal contribution
• $1,730,400 from compounding growth

He pulled his phone out and started setting up the 401(k) with eyes as wide as I've ever seen on a young person. He's out of the office this week, but I'm going to follow up with him. I hope it made the impression that he as something that I don't have. TIME.

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PeekingDuck said:

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That young man is lucky to have you as a sounding board. Financial literacy is probably worst than actual literacy these days, which ain't great.

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PeekingDuck said:

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That young man is lucky to have you as a sounding board. Financial literacy is probably worst than actual literacy these days, which ain't great.

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