Stessy is a millionaire

When my niece got out of college, I shared with her a secret formula to become a millionaire. Are you disciplined enough to follow?


Stessy is my fictitious niece (as far as you know) who was given this plan about twelve years ago when she graduated college at age 20. I am not a financial planner, but I am pretty good at math. As I explained the details of this plan, she was a bit skeptical. One of the keys to saving enough money for retirement is understanding how money, invested at a certain rate of return, compounds over time. To illustrate this I'll use real-world numbers and demonstrate the simplicity of using a single exchange-traded fund (ETF) to diversify your investment across the best U.S.-based companies to minimize risk. To set up our model you'll need to do a few things first, they are:


Calculate an annual savings goal for your investment nest egg.

For our purposes, we'll assume you have a Roth Individual Retiremen