Trey’s Tips & Tricks to Saving Money
TIP & TRICK #3 – HOW YOU SAVE FOR RETIREMENT
Want to be a millionaire?
For 2025, the maximum amount you can contribute to an IRA (Individual Retirement Account) is $7,000 per year.
The S&P 500’s average annual return over the past 50 years has been approximately 11.95%. This means your investments may go up and down each year, but historically, they average an 11.95% return over the long term.
The goal: Invest your retirement contributions in the market, leave them there, and forget about them until retirement.
Example:
If you invest $7,000 per year in an IRA for just 10 years and then let it sit, here's how it could grow:
- After 10 years: $130,000
- After 27 years: $1 MILLION
- After 34 years: $2 MILLION
- After 37 years: $3 MILLION
To contribute $7,000 a year, that’s about $583 per month, or roughly $20 a day.
If that amount feels like too much—start smaller. But the key is: DECIDE and DO SOMETHING!
