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Get On The Path To Making Your First $1 Million As A Teenager.

Here is the tired line that has been said a million times.

If I knew than what I know now I would be well on my way to have a million dollars.

This is a simplified plan as wrote on MSN Money & Investing

  • Work four consecutive summers starting at age 16 (earlier if you are able to do miscellaneous neighborhood jobs.
  • Save all of the income in a Roth IRA account
  • Invest it in a simple, low-cost equity portfolio
  • Let it simmer slowly for the next 47 years
  • At age 67 you will have your first beautiful (and untaxed) $1 million dollars that you can smile at.
  • However that is just your first million. Consider all of the additional money you will be putting into the account throughout your life. After a well earned education and career the money will continue to grow and you will not have to worry about your retirement as a lot of people are currently doing.

    Here is how four summer jobs will become your first million and hopefully not your last.

    A 16 year old works from the start of summer to the end of summer working part time and earns $2,000 (after taxes) for the entire summer. Invest the $2000 from each summer (for 4 summers) in what is called a Roth IRA, it will grow, tax-free, for as long as you have the account. All withdrawals from the account after age 59 1/2 will be tax-free.

    If your money is invested in common stocks and you achieve the average compound annual rate on large capitalization U.S. stocks, 10.7%, your account will grow to $9,378 at the end of the fourth year.

    If you do not close or withdrawl any funds from the account by the time you are 30 the account will have reached $25,917
    $197,943 by the time you are 50
    $1,114,423 by the time you are 67

    This is considering if you never add anther dime to the account after you have deposited $2000 for 4 consecutive summers.

    However, this plan depends on two factors.

    1) Get a early start and be determined.
    2) Do not allow anyone to tell you that $1 million is not what it used to be. $1 million is still $1 Million and if you can dedicate yourself to investing your hard earned money on your future than think of what you can do in the next 40 years. Being a millionaire is a better choice than being a pauper.

    Remember, this is only your first $1 Million dollars not the last.

    A nay sayer may tell you or ask you what if your dead before your 67? What if your not? You have only 2 things to risk four summers and $8,000. Considering that your investment will return $1 million your not really risking anything and how more summers will you enjoy in your life? How will you enjoy your summers once you reach age 67?

    "There are three ingredients to the good life; learning, earning, and yearning."
    Christopher Morley


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