| Let's imagine that you and I are two hypothetical families earning exactly the median income - and watch how quickly our behavior changes our economic circumstances. I'm a spendthrift. I blow every penny I make each year. You, on the other hand, are more prudent. You regularly save 3% of your monthly income - $190 a month - through a Roth IRA. Let's further stipulate that you invest it in a plain-vanilla S&P 500 Index fund that generates nothing more or less than its average long-term return of 10%. After the first decade, with dividends reinvested, you have $36,830. I have zero. As you can see, things are already unequal. In 20 years, you have $$131,865. (Finding $400 for an emergency is not a problem.) I have nothing. In 30 years, you have $378,361. (I still have nada.) And in 40 years, you have more than a million dollars. Plus, it's tax-free. (Let's remember you were smart enough to invest in a Roth IRA where distributions are tax-exempt.) Senator Bernie Sanders - who proclaims that he "does not have millionaire and billionaire friends" (despite having a multi-million-dollar net worth himself) - will stand at the podium and condemn you for your greed. (As if living within your means, deferring gratification, saving, and investing is selfish behavior.) But he will ask me - who saved nothing and therefore has nothing - for my vote, so that he can right the maldistribution of wealth in this country. Some readers may not have 30 or 40 years to save and invest, of course. In that case, you need to earn more, save more, or earn a higher rate of return... or all three. If you saved 10% of your income rather than 3% and invested in the higher-returning Russell 2000 index of small cap stocks, for example, you would have $141,305 in 10 years and $580,176 in 20 years. You would be a millionaire in less than 25 years. Amp up the savings or the returns even more and you'll be there quicker still. In short, it's your behavior rather than luck, fortune, or "the breaks" that ultimately determines your financial wellbeing. What can you do - specifically - to accelerate your wealth accumulation? - Upgrade your education or marketable skills to maximize your income.
- Live beneath your means. (When your outgo exceeds your income, your upkeep becomes your downfall.)
- Save as much as you reasonably can, while still living a balanced life. (Saving all your money for retirement is like saving up all your sex for old age. It doesn't make a lot of sense.)
- Invest those savings in the world's highest returning asset: a diversified portfolio of high-quality stocks.
- Minimize your investment costs.
- Tax-manage your portfolio - as with a Roth IRA - to avoid the prying hands of the IRS.
- Let your money compound as long as possible.
- And try to stay married. (Not always possible, in some cases, but divorce is far more likely than a bear market to halve your portfolio.)
Is this realistically achievable? Indeed, it is. As a former money manager, I watched hundreds of clients do just that. They weren't lucky. They had a plan. They stuck to it. And they reaped the rewards. With time and discipline, you can too. Good investing, Alex | 
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