Investing at 40? Here's How Much You Should Put Into This ETF Each Month to End Up With a $1 Million Portfolio by Retirement
Many people can't afford to start investing early in life. But it doesn't mean that if you start later, it's too late to invest and that you can't end up with a great retirement fund. Also, as you advance in your career, wages should increase, and there's the potential to invest more (on a monthly basis) than if you had started years earlier. So you may not be at a huge disadvantage.
Below, I'll show you how much you would need to invest each month if you're 40 years old or have 25 investing years until retirement in order to end up with a portfolio worth at least $1 million.
When you're saving and investing for the long term, there are three important variables to consider: time, money, and risk. For example, you can make up for having less time by investing more money and/or by taking on a bit more risk. In an extreme situation where you don't have many investing years left or much money to invest, the only lever you can pull is risk, which clearly isn't ideal when you're talking about retirement.
Source Fool.com
