- Does this sound a little too easy?
- It's really not. This is based off of only 7% annual interest. The stock market and most low risk investments make around 10-13% per year.
- I use 7% because it's really a worst case scenario and very conservative. Even with 7%, getting to 100k is relatively easy.
- The reason this works is due to the compounding effect of interest.
- So at 7% interest and contributing 100$ a paycheck, you easily get to 100k in 25.5 years.
- So let's get started.
- My #1 recommendation is to start with a big reputable company like Schwab, Fidelity, or USAA.
- If you're in the military, use the Thrift Savings Plan.
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