In the U.S.A., even people of modest means can become well off through the magic of compound interest.
If a person invests 10% of their income for 40 years, at the end they will have 20 times their average income invested.
That, at a rate of return of 7%, will give them an income of 1.4X of their annual earned income for the rest of their life, and they can pass on the entire principle to their heirs.
7% is what a stock market index fund, based on the S&P 500, has averaged for the past 90 years, adjusted for inflation.
Once people start making the automatic payments to a 401K type investment account, they don't even miss the 10%.
That’s why nobody in Canada is rich, there’s no income “left over” to invest after our confiscatory tax rates are applied
Great post!
... especially for the young Freepers, take heed.
You are a valuable asset here in Freepland, too.