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Monthly Savings Required to Achieve Millionaire Status by Age 65

October 18, 2023

$1,000,000 has been the long-held goal for many people.  Is it as hard to reach as most people think?  Let’s dig into the numbers!


First, let's make a few assumptions.  Under these scenarios, the investor will be making monthly contributions into an investment account.  These funds will be invested strictly into the S&P 500.  Since 1928, the S&P 500 has annualized 9.6% including dividends.  For this scenario, the investor will get a 9% annualized rate of return.  After all the calculations, the table below shows how much you need to invest per month to reach $1,000,000 at age 65.

For a 20-year-old, it only takes $135 a month to reach millionaire status!  But as you can see, the longer you wait to start investing, the more it takes per month to reach millionaire status.  Some might say $1,000,000 won’t be enough to retire 30 years from now.  They might be right, but let's look at the numbers for $2,000,000.

If you start investing right away after starting your first job, you could reach $2,000,000 in investments for less than $500 a month.  Starting early is key to taking advantage of compound interest. 


Don’t know where to start with your finances?  Check out our 8 Financial Waypoints or book a free meeting here