‘If you do not retire a millionaire, no one is the fault, yours’

Although the headlines dominate the stock exchange by a rollercoaster, the financial guru is not going to Ramsey Doom and Gloom.

In fact, the radio host considers each young American hit be a millionaire.

“If you are younger than 40 and do not retire a millionaire, it is your fault, but your 64-year-old gossip Earlier in X-known X ..

Here are more closer look at the math in the back of his advice.

Despite the economic problems facing young Americans, Ramsey believes that an average of 25-year-olds should save part of the annual income of the annual income of the annual income of only $ 1 million.

However, his thesis believes that this 25-year-old child is invested in the “mutual funds of good growth.” According to its estimates, only $ 100 in such growth funds can create a total of 1,176,000 slots eggs in 40 years.

Ramsey does not record any special growth, but its estimates are about 12.85% annual growth.

Vanguard S & P 500 ETF (VOO) has gave 14.00% of the United Year growth since 2010, 14.00%, and 100 ETF (QQQM) delivered 17.24% since 2015 each year.

Actually delivered the S & P 500 Average annual turning According to investment, since 1957, 10.13%.

Given the long-term performance of these index funds, Ramsey’s hypothesis does not seem to take into account the final variability in the stock exchange in response to President Donald Trump’s tariff ads. In the last 100 years there were many coups, bottoms, adjustments and open accidents and the market was always pulled back at the end.

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Four variables of complex growth calculation are time, initial investment, regular investment and growth rate. Of these, the only variable you can manage is a regular investment.

In a month, investing $ 200 or $ 300 can help create a large nest egg from $ 1 million. Ramsey recommends the rod to be higher in 15% of the total annual income.