How To Make \$1,000,000The Math And Strategies That Work

Sorry, this isn’t going to be a get rich quick post, but I do want to show you how to make \$1,000,000 and have that nest egg for when you retire!I’m a firm believer that individuals of most income levels can afford to save and invest to have over \$1,000,000 by the time they retire.  After doing some math, which I will share with you below, I was pretty surprised about how possible it is.I’ve run several different simulations, based on different market returns and savings amounts, and I’m showing you below. Then, we’ll talk about different strategies and tactics you can use to get there. Let’s break it down.

The Goal: \$1,000,000Time Frame: I’m assuming you are 25, and will save until you are 65, so 40 years.Rate of Return: I’m running two different scenarios – 5% and 8%.  Everyone always seems to quote 8% since that has been the historical norm, but if you’re planning for retirement, I’d rather be a bit conservative.Scenario 1: 5% Annual ReturnIf you want to save \$1,000,000 at an 5% annual return, you need to save about \$650 per month. That’s over 40 years.

Scenario 2: 8% Annual ReturnIf you want to save \$1,000,000 at an 8% annual return, you need to save about \$300 per month. That’s over 40 years – and this is probably closer to what the stock market will return over that long period of time.