“If you don’t retire from a billionaire, it’s not anyone’s fault.”

Headlines are dominated by stock market roller coasters, but financial guru Dave Ramsey is not a fate and gloom.

In fact, radio hosts believe that every young American has a shot Become a billionaire.

“If you don’t retire as a billionaire under the age of 40, it’s not anyone’s fault,” said 64. I said It was previously known as Twitter.

Let’s take a closer look at the mathematics behind his recommendation.

Despite the financial challenges faced by young Americans, Ramsey believes that an average 25-year-old should save a small portion of his annual income and retire at age 65, exceeding $1 million.

However, his paper assumes that the 25-year-old is investing in “Good Growth Stock Mutual Funds.” According to his calculations, investing only $100 a month in such a growth fund could create a $1,176,000 nest egg within 40 years.

Ramsey doesn’t mention any particular growth funds, but his calculations mean a growth rate of around 12.85% per year.

The Vanguard S&P 500 ETF (VOO) has provided a combined annual growth rate of 14.00% since 2010, and the Invesco Nasdaq 100 ETF (QQQM) has provided 17.24% each year since 2015.

In fact, the S&P 500 streamed An Average annual income According to Investopedia, 10.13% since 1957.

Given the long-term performance of these index funds, Ramsey’s assumption does not seem unreasonable, even considering the recent volatility of the stock market in response to President Donald Trump’s tariff announcement. There have been many shocks, dips, fixes and complete crashes over the past 100 years, and the market has always bounced back.

read more: The “fear gauge” of the US stock market exploded, 1 “Shockproof” assets increase by 14%, helping American retirees settle. Here’s how to own it as quickly as possible

The four variables in the compound growth calculation are time, initial investment, regular investment, and growth rate. Of these, the only variable that you can control to some degree is your regular investment.

Investing $200 or $300 a month will help nest eggs get significantly larger than $1 million. Ramsey recommends setting the bar even higher at 15% of its total annual income.