Be Careful What Your Wish For; It Could Cost You Half a Million Dollars

If someone could show you how to have an extra half million dollars at retirement time, would you be interested? Of course you would be. But are you willing to do what it takes to accumulate the half million?

You often hear young people say, "I wish I could afford to drive a new car all the time." Well, most working people can afford to drive a new car at least every three years, but is it a wise investment decision?

What can one accumulate over forty years by driving an older car, but reliable car?

Let's assume for this example that we had two people, one who trades cars every three years for a new model and the other who trades every ten years. There are lots of variables when it comes to car prices automobile insurance, and car tax. But let's assume that the three-year trader will be out about $150 per month more than the ten-year trader over the forty-year period.

If our ten-year trader invests $150 each month for forty years at an 8% return he or she will have accumulated a little over half a million dollars.

Investment dollas may come from other wise budget decisions, but the important thing is to start and maintain a consistent investment program.

If you would like assistance with your family finances, please contact Kenneth D. Eichner, P.C. We are here to help you.

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