"Ramsey stated, 'If you save 15% of your gross annually into good growth stock mutual funds inside of your retirement plan... you're going to be a millionaire. You're going to be fine.'"
"The S&P 500 has delivered an average annual return of roughly 10% over its long-term history, but actual returns can vary significantly over any given 10 or 12-year stretch."
"The millionaire outcome requires B to invest far more than the 15% of his income, as his surplus of $3,000 CAD monthly is significantly higher."
A 54-year-old Canadian caller, debt-free and with a monthly surplus of $3,000 CAD, inquired about retirement savings. Ramsey suggested saving 15% of gross income into growth stock mutual funds. If the caller invests consistently for 10 to 12 years, he could potentially become a millionaire. However, the actual outcome depends on consistent contributions and market performance. The difference between Ramsey's 15% rule and the caller's full surplus investment is crucial for achieving the millionaire forecast.
Read at 24/7 Wall St.
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