To many this question is only the name of a popular television game show, but for others it is a retirement goal. If it’s your goal, I’ll bet you’ve wondered just how to get there.
For one thing, you have to make retirement a priority and start saving now. The earlier you start, the more your savings work for you in helping you reach your goal.
As the chart below illustrates, assuming an average annual return of 7% (your returns of course may be higher or lower), the amount you end up with could vary based on when you start.
At age 25 you would have to save about $4,700 per year to reach $1,000,000 at age 65. That equates to $188,000 over the 40 years or 19% of your retirement goal. The earnings on your savings equal the remaining 81%.
Starting at age 40, you would have to save about $14,780 per year or $369,500 (37% of your retirement goal) over 25 years to retire with $1,000,000.
It costs approximately $10,000 per year more to retire a millionaire if you start when you’re 40 years of age rather than 25. So start saving today and make the television show your reality!