How Every Generation Can Become Millionaires, According to George Kamel
Written by
J. Arky
Edited by
Rebekah Evans
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Financial influencer George Kamel knows that the value of a dollar changes with someone’s age. While that $1 can mean a lot to someone in their 20s it gradually decreases over time. That does not mean, however, that someone cannot become a millionaire the older they get because every generation has the opportunity to tap into that wealth if they are making the right money moves.
In his Youtube video “How To Save $1,000,000 (By Age),” Kamel broke down how every generation can become millionaires.
Investing Is for Everyone
Kamel highlighted that anyone can take advantage of investing and harnessing the power of compound growth. The amount you put in as the principal investment will grow based on interest, which you can reinvest to increase your wealth, earning returns on the entire balance instead of the initial amount.
“That is why $1 invested at 22 years old with a 10% rate of return with no additional contributions could grow up to $50 by age 62,” Kamel explained. But Kamel is keenly aware that anyone would not want to simply retire with that amount, with lots of investors hoping to be millionaires by the time they leave the workforce.
Kamel illustrated how this is possible at any age. As an example, he posited that someone who is 22 starts to invest $158 each month into their retirement over the course of the next four decades, an amount that Kamel admitted is not a lot of money. You will have only invested $76,000 of your own money during that time, but with compound interest working in your favor, earned $925,000 as a return.
If someone is starting a little later, say at 32, Kamel advocated that they will need to invest double the amount of contributions for the next 30 years, which comes to about $442 a month. That adds up to $160,000 of personal contributions. Due to interest on the principle, by the time you reach age 62, you will have $840,000 in growth.
Starting at 42, with nothing saved for retirement, Kamel broke down the investing to be a millionaire equation like this: someone will need to contribute $1,300 over the next 20 years. While $1,300 each month might sound like a lot, Kamel pointed out how you will still be able to earn about $683,000 in compound growth.
Finally, if someone is 52, late to investing with nothing saved and looking to save a million dollars by the time they retire, Kamel demonstrated that they will have to $4,900 each month over ten years to get $585,000. The compound growth should add up to about $415,000 in order to reach the million mark. While this strategy is harder, Kamel noted it is still possible to realistically accomplish.
Time Is of the Essence
“Starting early makes a big difference,” Kamel said, reflecting on the above examples. “You want time on your side and you want to be investing consistently.”
Kamel reiterated that retirement is not an age, it is a financial number. Just because you turn 62 does not automatically mean you can kick back and not have to worry about money. It takes planning, strategizing and being consistent in contributions. “You can retire when your assets generate enough income to cover your expenses with room to spare,” Kamel added.
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