Ackshually…

I have to issue a retraction related to the tweet below.

I didn’t see the “a year” part which changes the math dramatically. Turns out, Ron Baron is mostly right.

If you were contributing $5,000 a year into an investment account with the goal of amassing $1 million, you can get there, assuming like Baron said, you have patience.

This is how long you’ll have to wait and how much you’ll need to earn in order to get to seven figures:

  • 2o years – 20.7%, forget about it
  • 30 years – 10.5%, not gonna happen
  • 40 years – 6.8%, Certainly possible, but you’re going to get cut in half eventually, maybe more than once.
  • 50 years – 4.7%, this seems reasonable

This idea that “any” patient investor can accumulate $1,000,000 is true, but there are about four dozen other personality traits one will need in order see this to fruition.

 

 

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