Achieving a portfolio balance of $3 million is no easy feat: this usually doesn’t happen by accident. Here, we’ll look at a few key pillars of achieving a huge portfolio balance by the end of your working life and how to be patient and consistent.
Max out your Roth IRA every year
Make the annual Roth contribution a habit as early on in the calendar year as possible and make sure it happens every year.
- There is a good chance that taxes will rise generally over the coming decade, so the fact that you’ll have a fully funded Roth IRA exempt from taxes forever is a huge benefit.
Make use of your 401(k) up to the match
The sooner you start investing money in tax-advantaged vehicles, the sooner you’ll see a runaway compounding effect
- This is simply due to the power of compound interest applied over long periods of time
Patience and consistency are the keys
Having enough is about limiting needs as much as it is earning more.
- If you can live modestly enough to ensure that you’re saving and investing properly in the right tax-advantaged accounts, it really will pay dividends over time.
