If You Have $3 Million Saved, Pay Attention to This

But I want to talk about the fact that if you have $3 million especially, what could that grow to over time? I mean, if you just think about it, a 10% growth rate per year on $3 million, it's $300,000 per year.

That is a lot of money.

And my question to you is, what are you gonna do with 300,000? You probably don't need all of that for income, especially with a pension and social security.

And so oftentimes we see people that they just reinvest it and then their investments compound and compound and compound and compound.

over time.

And if you see the 20% returns that we've seen in the past three years, especially, well, I mean, then you see $600,000 of gain the last three years.

And I put together an illustration to help us better understand that if based on in 2022, if someone said, hey, I have $3 million in 2022, what would that amount equate to at this point? And we would see that be well over $6 million at this point, knowing we have seen those 20% plus returns.

And so just think about that.

In a very short amount of time, you saw your money double in just three or four years, what is that gonna do in another 30 years? That's a real big question that I want people to consider.

Now, I wouldn't expect for their investments to continue to double every three or four years like we just saw recently, but it is something we wanna plan for, knowing that that could be the case or knowing that even if it's not that rate, this still is gonna compound and grow quite a bit because if you just had 3 million a few years ago, now you have 6 million, but you still maybe have 30 years of life expectancy ahead of you, that can compound and grow even more.

And so we know the rule of 72 says that if you have $6 million now, we know, and you're 60 years old, we know that by the time you're 70, if you don't touch it, you just let it sit there and cook and marinate.

If you just see a 7.2% return on that $6 million, you'll see that double to $12 million by the time you're 70 years old.

And then if it doubles again, by the time you have 12 million, now you're going to have 24 million and you're 80 years old.

And if you're still going to live till 90, that 24 million could turn into $48 million just by getting a 7.2% return, which you could argue the market's done historically over time, closer to 10%.

you could argue that it could even be more wealth over time, especially sooner as well.

And so a lot of retirees know this to be true because they see how much money they have based on compound growth working for them.

But I think a lot of people forget is that compound growth works more the later you go into retirement.

And so the more you have, the more compound growth works.

And so I want people to really have an eye for that and understand how that works together.

So if you find yourself, especially right now today with 3 million or 15 million, you probably haven't been worried about what's called estate taxes.

Now, I want to open your eyes to that specifically here on a video today and send some more planning strategy we can think about with it specifically, but this is where you could have to pay a 40% flat tax over a certain amount.

So if you're a married couple, the individual amount is $15 million each.

So married, you have an exemption of $30 million.

So if your net worth when you pass is under $30 million, You don't have to worry about paying an estate tax.

You're not subject to a 40% tax on your estate.