How I Plan to Retire a Multi-Millionaire…

(scroll to the bottom for this weeks resource of the week)

Men lie…

Women lie…

But numbers don’t.

In this week’s newsletter I’m going to break down the numbers of how I plan on retiring a multi-millionaire and prove to you that you can also.

Yep, I didn’t make a typo, I really do plan on retiring as a multi-millionaire…

… and it’s all down to this amazing phenomenon known as compound interest.

So, what exactly is compound interest?

Well, it's like planting a money tree that keeps bearing fruit and then planting those fruits back into the ground to grow even more trees. In other words, it's interest on top of interest, on top of interest, and so on.

Let's break it down with a simple example. Say you invest £1,000 in an index fund that earns you a 10% annual return. At the end of the year, you'd have £1,100, right? But here's where the magic happens: instead of just leaving that £1,100 alone, you reinvest it back into the same index fund. Now, you're not just earning 10% on your initial £1,000 investment; you're earning 10% on £1,100.

Fast forward a few years, and you'll be amazed at how your money grows exponentially. That's the power of compound interest at work! It's like a snowball rolling down a hill, picking up more snow and momentum as it goes.

At the time of writing this post (6th April 2024) my Vanguard portfolio is currently sitting at a value of £60,050.05

Remember earlier when I mentioned numbers don’t lie?

If I were to not make a single further contribution to my portfolio and leave it as it is, then at the age I retire (40 years from now) I would have roughly £3.2 million 😱💰

*assuming an average of a 10% annual return YoY (year on year)

But here’s where things get even more exciting…

If I were to continue investing at the current rate I am (£1666p/m) for the next 40 years, my projected value would explode to over £13.7 million 😱

and that’s a short lesson on compound interest and how it can provide you and your family generational wealth.

How this can work for you

As an example, let’s say you’re completely new to investing and you have £200 left over per month that you would like to put towards investing for your financial future. Let’s put these numbers in the calculator and see what you could end up with:

• Initial investment = £0 (since you have just started)

• Years = 40

• Monthly deposit amount = £200

• Interest rate (annual return) = 10%

From investing just £200 after 40 years you would end up with over £1.2 million!

Now it’s time for you to take action

What I want you to do is head over to the compound interest calculator site, have a play around with the numbers yourself and see for your own eyes how compound interest works.

A heads up for next weeks post

So you now know the numbers, how they work and what needs to be done, but you’re unsure what investments can reliably return you the figures we’ve mentioned above? Well, join me back here next Sunday where I’ll be discussing the various investment options that you’ll next need to start thinking about 😉

I hope you enjoyed this read. If you have any questions, simply reply to this email.

I’ll catch you back here next Sunday

over and out ✌️

Monty L.