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Considering this, the dream of retiring as a millionaire might actually be a necessity in many cases.
The sooner you get started, the more you’re able to benefit from time and compound interest.
If youinvested in stocks, you get the added bonus of watching those increase over time.
Like many people who become millionaires, Gesericks path started early.
In fact, hes already achieved his initial goal.
Heres how he got started.
To become a millionaire, it was pretty simple.
I stared saving money when I gotmy first real jobat 21 years old.
Retirement accounts have their contribution limits, which change every year.
For 2024, the annual contribution limit for a 401(k) is$23,000.
Its the same for Roth 401(k) plans, though limits increase if youre older than 50.
Each retirement plan has its own advantages.
Roth 401(k) contributions, for example, are made with after-tax dollars.
401(k) contributions are made with before-tax dollars.
I also, most years, maxed outRoth IRA contribution limits, Geserick continued.
Roth IRA contributions are made with after-tax dollars.
Themaximum annual contributionis $6,500 or $1,000 for those over the age of 49.
An HSA makes it easier to afford medical care.
Not only that, but these plans can sometimes earn interest, which isnt taxable.
You also wont have to pay taxes on qualified distributions that is, those used to coverqualified medical expenses.
Like 401(k)s, HSAs have contribution limits.
Once you turn 65, you could use the funds in that account for any reason medical or otherwise.
You will need to pay income taxes on any non-medical expenses, though.
Hes got bigger financial goals and the time to achieve them.
My retirement goal is $4 million.
As for the future, he intends to retire before the typical retirement age of 62.
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