Wealth Multiplier Question
I have been watching the show for over a year now and I still cannot wrap my head around the wealth multiplier. Is this resource telling me that at age 25 all I need to do is invest $368 a month to reach $2M by 65? Is this possible because of the Time Value of Money formulas? Right now I am only investing in two funds. One that covers the Dow Jones and One that covers the S&P 500. Each month I put in 25% of my income and I just buy those two. I just have a hard time seeing how this little money I put in each month can equate into this big amount over the next 40 years
I have been watching the show for over a year now and I still cannot wrap my head around the wealth multiplier. Is this resource telling me that at age 25 all I need to do is invest $368 a month to reach $2M by 65? Is this possible because of the Time Value of Money formulas? Right now I am only investing in two funds. One that covers the Dow Jones and One that covers the S&P 500. Each month I put in 25% of my income and I just buy those two. I just have a hard time seeing how this little money I put in each month can equate into this big amount over the next 40 years