Are You Ever Too Old to Become a Millionaire?

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Do you have to give up on becoming a millionaire if you wait too long? 

Amassing a $1 million net worth (or more) is a dream of many people because a million dollars represents financial security. And, while it may come as a surprise, most people actually can become millionaires if they start diligently investing in a brokerage account early on in life and allow the power of compound growth to help them amass a large account balance.

But, what if you didn’t start investing early? Does there come a point when you actually become too old to have a reasonable chance of becoming a millionaire?

Is it ever too late to reach millionaire status?

The sad reality is, if you wait a long time to start investing, it becomes much harder to become a millionaire. That’s because you have less time for your money to grow and you don’t benefit as much from compounding interest (which happens when your returns are reinvested so you earn more the next year without any extra effort on your part).

The power of time really does make a huge difference in terms of your ability to become a millionaire, which is why it is so important to do all you can to start investing money when you’re as young as possible.

If you start putting away money at age 30, for example, you can become a millionaire by age 65 by investing $307 a month every month and earning an average 10% annual return (which is a reasonable expectation if you invest in an S&P 500 index fund). But if you start investing at 55, your monthly contribution to reach millionaire status by 65 is $5,228.77.

Obviously, one of those savings goals is a lot more feasible than the other. After all, if you avoid credit card debt, live on a budget, and are careful with your money, chances are good you can come up with about $300 a month. But finding over $5,000 is a lot more of a stretch.

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This does not, however, mean that it’s impossible to become a millionaire after reaching a certain age. It just becomes harder, or requires you to take a different path to do it.

What if you’ve waited too long to get started?

If you feel like you’ve waited too long to start investing, there are a few options available to still become a millionaire.

First and foremost, you’ll want to begin investing right away. The longer you wait, the harder it is going to be to hit your target. You should also start looking into any options you have for getting the most bang for your investment buck, like using tax-advantaged accounts and claiming your full employer match for your 401(k).

You may also want to think about other paths to becoming a millionaire besides just putting money into a brokerage account and hoping for the best. If you can increase your income, for example, you may be able to accelerate your savings and invest a substantial amount of money each month. If you can become a skilled investor and pick individual stocks to invest in, you may be able to do better than a 10% average annual return. Or, if you have a brilliant idea, you can start a business and potentially make a million dollars if your company takes off.

The bottom line is, there’s no age when you should stop working toward your financial goals or give up on achieving them. You may need to work harder if you waited to start, but it’s worth the effort — and even if you fall short of becoming a millionaire, you’ll still be a lot closer to your goal (and a lot better off) than if you didn’t try at all.

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