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Here's how much money 35-year-olds should invest each month to become a millionaire – CNBC

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Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.

Investing is one of the most important ways to grow your money over time, and it’s become more accessible to Americans thanks to apps like Acorns, WeBull, Wealthfront and more. Many people dream of one day having a million dollars in their bank account, but how much do you actually need to invest to become a millionaire?

According to Brian Stivers, a Financial Advisor and Founder of Stivers Financial Services, these are the three most important elements for investing: the amount you contribute each month, the rate of return and how long you have to reach your goal. With this in mind, you can actually invest enough money to earn yourself one million dollars.

If you’re 25 years old and want to reach $1 million by the time you’re 65, you can invest as little as $240 per month, assuming a 9% yearly return. But if you wait just 10 years to start investing at age 35, you’ll have to put in a lot more money each month.

Below, Select breaks down how much money you need to invest if you’re in your mid-thirties and want to become a millionaire.

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How much to invest to become a millionaire

When crunching the numbers, Stivers accounted for three different return rates: 3% (a conservative portfolio of mostly bonds), 6% (a combination of stocks and bonds) and 9% (a portfolio that’s stock-heavy or contains index or mutual funds yielding around 9% on average). And, he used a retirement age of 65, which would give 35-year-olds 30 years to save. Here’s how much 35-year-olds would need to invest each month to become a millionaire:

  • If making investments that yield a 3% yearly return, a 35-year-old would have to invest $1,750 per month to reach $1 million by age 65.
  • If they instead contribute to investments that give a 6% yearly return, they would have to invest $1,050 per month for 30 years to end up with $1 million.
  • But if they choose investments that yield a 9% yearly return, which is comparably more aggressive, they would need to invest $590 per month for 30 years to reach $1 million.

Compared to those who begin investing at age 30, people closer to age 35 will have to contribute a little more money each month in order to reach the same goal by age 65. Compound interest is most powerful when it has a longer amount of time to grow your money. A five-year age difference may not seem like much, but when it comes to investing it can have a huge impact on how aggressive your contributions need to be. Thirty-year-olds investing for a 9% yearly return only need to invest $370 each month to have a million dollars by age 65, but 35-year-olds, as we can see, would need to invest $590 per month to be a millionaire at age 65. That’s a difference of $220 more per month.

The sooner you begin investing, the better. However, it’s never too late to start — even if you don’t think you have enough money to fully commit to putting away $590 per month. In fact, many people often find themselves in a position where they need to prioritize other life expenses — such as raising a child or caring for aging parents — so investing that much money consistently may feel like a bit of a squeeze. But, anything that you put away will grow, and the sooner you do that, the more time compound interest has to work its magic.

To help you work toward your goals, many investing apps allow users to invest in fractional shares — aka, a portion of a stock’s share based on the amount of money you want to invest rather than the number of shares you want to purchase — with as little as $1. And, apps like Acorns even allow users to invest the “spare change” they accrue from making everyday purchases like coffee, textbooks and clothing.

Keep in mind that when investing in stocks, you shouldn’t just be throwing your money at random individual stocks. A tried and true strategy is to invest in index funds or ETFs that track the stock market as a whole, like the S&P 500. According to Investopedia, the S&P 500 has historically returned an average of 10% to 11% annually, so you might expect a fund tracking this index to produce similar returns. Note that past returns do not indicate future success.

And, some investment apps offer robo-advisors, like Wealthfront and Betterment, to help you determine which investments make sense for you based on your risk tolerance, goals and retirement date. Robo-advisors also take on the task of automatically rebalancing your portfolio as you get closer to the target date for your goals (be it retirement or buying a house). This way, you don’t have to worry about adjusting the allocation yourself.

Betterment

On Betterment’s secure site

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle selected. For Betterment Digital Investing, $0 minimum balance; Premium Investing requires a $100,000 minimum balance

  • Fees

    Fees may vary depending on the investment vehicle selected. For Betterment Digital Investing, 0.25% of your fund balance as an annual account fee; Premium Investing has a 0.40% annual fee

  • Bonus

    Up to one year of free management service with a qualifying deposit within 45 days of signup. Valid only for new individual investment accounts with Betterment LLC

  • Investment vehicles

  • Investment options

    Stocks, bonds, ETFs and cash

  • Educational resources

    Betterment RetireGuide™ helps users plan for retirement

Terms apply.

Wealthfront

On Wealthfront’s secure site

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle selected. $500 minimum deposit for investment accounts

  • Fees

    Fees may vary depending on the investment vehicle selected. Zero account, transfer, trading or commission fees (fund ratios may apply). Wealthfront annual management advisory fee is 0.25% of your account balance

  • Bonus

  • Investment vehicles

  • Investment options

    Stocks, bonds, ETFs and cash. Additional asset classes to your portfolio include real estate, natural resources and dividend stocks

  • Educational resources

    Offers free financial planning for college planning, retirement and homebuying

Terms apply.

Bottom line

Investing can be a very impactful way to grow your money, but keep in mind the factors that play a role in how much wealth you build: rate of return, how much you invest each month and, of course, time.

Regardless of what your money goals are, beginning with small steps can make a difference. But if your aim really is to invest your way to $1 million, the sooner you start, the more time your money will have to grow, meaning you’ll be able to contribute a lower amount each month over the years

Catch up on Select’s in-depth coverage of personal financetech and toolswellness and more, and follow us on FacebookInstagram and Twitter to stay up to date.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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Lightspeed China Raises $920 Million For Tech Investment – Forbes

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Lightspeed China Partners, whose founding partner James Mi ranked No. 51 on the 2021 Forbes Midas List, has raised $460 million for its Lightspeed China Partners V and $460M for its Lightspeed China Partners Select II. The capital raised marks the largest fundraising rounds in its history, Lightspeed China Partners said today.

The new funds, covering both early stage investments from Fund V and emerging growth stage investments from Select II in China, will focus on sectors including green tech, deep tech, enterprise tech, health tech and consumer.

“The funds’ oversubscription is evidence of the strong support garnered from returning and new institutional limited partners across the U.S., Europe and Asia,” Mi said in a press release.

Lightspeed China Partners manages $3 billion of committed capital across eight U.S dollar funds and one renminbi fund. In addition to green tech, Lightspeed China Partners has picked winners in the mobile internet, deep tech, and enterprise services space, including Meituan, Pinduoduo and Full Truck Alliance.  

China, the world’s No. 2 economy, accounted for more than a fifth of the members of this year’s Midas List.

See related posts:

China Accounts For More Than A Fifth Of New Midas List

China Mints Its Latest Green Billionaire

@rflannerychina

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N.B. Investment Awareness Campaign Targets Scam-Prone Millennials – 91.9 The Bend

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Millennials are more prone to lose money in financial scams than their elders.

With years of attention paid to educating older Canadians about protecting their money from fraud, it may be surprising that many younger investors have fallen victim to get-rich-quick pyramid schemes, bogus virtual currencies, and more.

Perhaps equally surprising is how New Brunswick’s financial and consumer services regulator feels Millennials are disinclined to take financial advice from a Crown corporation.

“We know this demographic is notoriously difficult to reach,” says Marissa Sollows, the director of education and communications with The Financial and Consumer Services Commission of New Brunswick (FCNB).

In an interview with Huddle, Sollows cites FCNB’s research, in addition to research coming from other provincial commissions, confirming millennial investors are in some cases at higher risk of falling for poor investment pitches or making decisions without the right financial knowledge.

In the first nine months of 2021, 20 New Brunswickers reported losing nearly $711,000 in crypto investment scams, according to the Canadian Anti-Fraud Centre.

“When we started looking at this situation in New Brunswick, it became clear as we saw different trends in DIY investing and interest in crypto and that this was an audience that we needed to try and reach,” explained Sollows.

Not your parents’ investment landscape

Sollows says Canadian investors in their 20s and 30s approach their finances from a different cultural perspective than their predecessors: research shows they are less likely to want to work with a financial advisor and want more hands-on control over their investments.

But Sollows says there is also fear that they don’t know enough about investing and are worried about losing money.

“To come from a regulator, we sort of recognized it wouldn’t work as well for this audience, who get their information from different sources and who have different levels of trust with those different sources,” said Sollows.

In an effort to respond with something meaningful for the Millennial segment, FCNB designed a new awareness campaign that was outside its traditional outreach.  Where social media has hooked young investors on finance, FCNB decided to put more of its campaign resources on YouTube, Twitter and, for the first time, TikTok.

For Sollows, that meant focusing not just on what channels Millennials were getting their financial information from, but also trying to understand how they were interacting with those they perceived as “experts” and where that financial advice was coming from – whether legitimate registered online trading platforms or somebody purporting to be an expert with a hot tip.

“There’s a much higher level of comfort, with the younger generation, with technology and with putting trust in their peers in these different online forums as opposed to going to a traditional financial advisor that their parents would have had more trust in,” says Sollows.

On Nov. 22, FCNB launched “The Right Recipe,” a new investor education campaign targeting Millennials and do-it-yourself investors with resources designed specifically for them.

FCNB campaign videos serve as explainers on a variety of topics–including fad investing, multi-level-marketing schemes, influencer scams, and high-risk investment products–while reinforcing the steps any investor can take to protect themselves and their money.

Do-it-yourself investing is exploding

Covid-19 lockdowns and uncertainty translated into a meteoric rise of online DIY investment platforms and trading apps, leading many to investment possibilities for the first time at the touch of a button. Others are getting their advice on social media and choosing instead to test unconventional methods. But, as Sollows points out, these often “prey on FOMO” (fear of missing out) on advertised payoffs.

The rise of “finfluencers” (a specific type of influencer who focuses on money-related topics) have made full use of platforms like TikTok, Instagram, and YouTube to get the attention of young investors.  Couple that with Millennials increasingly willing to devote cash on decentralized cryptocurrencies and hot stocks – with much of that advice coming at them through social media – and you’ve got a scene rooted in familiar tones.

Interactive Investor, A UK online investment service published a July survey showing more than half of young investors surveyed in the UK who have purchased cryptocurrency like bitcoin or dogecoin have done so using credit cards, or even student loan money.

More unconventionally, users of Reddit have made headlines swelling into pump-and-dump schemes targeting low-cost stocks for small companies.  Money inflating the value today might be worthless tomorrow on a pre-planned selloff, leaving young investors holding pennies of worthless stock days later.

Trendy concepts like “Impact Investing,” where a company gathers investment intenting to “generate measurable, beneficial societal and environmental impact, alongside a financial return,” have gotten young people to invest money for the promise of helping a greater good, which often leads to confusion and no return for the investor.

“It’s the same old scam,” according to Sollows, who says it’s just wrapped up in different wrapping paper with a different story around it.

“We’ve seen this kind of thing happen with ‘green investing’ in the past when renewable energy and so on was becoming really popular. The scammers would follow the headlines and build pitches around it.”

Financial awareness education is evolving

On the flipside, Sollows says there’s a need to help young investors navigate many of the legitimate online platforms out there. She hopes FCNB can be a trusted resource to help Millennials make some of their first investment decisions, especially when going the DIY route.

“The Right Recipe” depicts a fictional brewmaster who has heard a lot of financial tips over the years.

He’ll tell you that everybody knows someone who’s made a bundle in the markets. He figured if his customers could do it, why couldn’t he? The example allows the user to follow his investment journey, for better or worse, through videos.  That journey is everything from “listening to some rando’s advice on social media” to letting “FOMO be his guide” and blindly “following the latest investment trends.”

In addition to campaigns like “The Right Recipe,” FCNB also offers investment updates and fraud alerts emailed directly to those who sign up on its website and provides a variety of financial literacy topics through both in-person and through virtual presentations. Those sessions are offered to workplaces, classrooms, and the broader community, covering topics ranging from financial literacy and budgeting to investing to fraud prevention.

For navigating the investment learning curve and the possible pitfalls for young investors, Sollows believes the campaign would be a success if people used the information and experience of the brewmaster to instead follow their gut instead of social media when the offer seems too good to be true.

“If you’re being offered some crazy returns on things, and they’re telling you, ‘Oh, I can guarantee you’re going to make this much money and it’s so easy you don’t need to understand it — In any other aspect of your life, if somebody said that to you, would you keep the conversation going or would you walk away saying, ‘No thanks, I’m good.’”

FCNB’s The Right Recipe campaign will run until mid-February, in both English and French on most social media platforms and at: therightrecipe.ca.

Tyler Mclean is a reporter with Huddle, an Acadia Broadcasting content partner.

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Toronto index rebounds as energy stocks jump

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Canada‘s main stock index rebounded on Monday, after posting its biggest decline in more than a year in the previous session, as a near 5% jump in crude prices lifted energy stocks.

At 9:44 a.m. ET (14:44 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 86.7 points, or 0.41%, at 21,212.6.

The energy sector climbed 1.6%, gaining its footing after recording the worst session since Dec. 2020 on Friday.

Crude prices jumped as investors looked at the Omicron coronavirus variant concerns that led to a drop in oil and financial markets on Friday as exaggerated. [O/R]

Sentiment in global markets improved as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy. [MKTS/GLOB]

“While market participants continue to have more questions than answers for the moment, the general tone coming into the new week certainly feels a lot less panicky,” said Arthur Hogan, chief market strategist at National Securities in New York.

The benchmark equity index’s record-breaking rally paused in the last few weeks as weakness in commodities and concerns around COVID-19 resurgence in Europe dented sentiment. However, the index was set to end the month in positive territory with consumer discretionary stocks and miners leading gains.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.5%.

On the economic front, producer prices in Canada rose by 1.3% in October from September on higher prices for energy and petroleum products, Statistics Canada said.

Meanwhile, domestic investors await bank earnings this week and will be seeking more information on dividends and buybacks, as earlier this month Canadian regulators granted financial institutions approval to return more capital to shareholders.

HIGHLIGHTS

Oil producer Vermilion Energy Inc was the biggest percentage gainer on the index followed by lithium miner Lithium Americas Corp.

The TSX posted no new 52-week highs and one new low.

Across Canadian issues, there were five new 52-week highs and 13 new lows, with total volume of 46.61 million shares.

 

(Reporting by Amal S in Bengaluru; Editing by Vinay Dwivedi)

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