Retiring with $1 Million

Retiring with $1,000,000 isn't as hard as you might think when you factor in two critical factors - return on investment and time.

Let's begin with a very realistic rate of return - 6% per year.  While the stock market will have good years and bad years, averaging 6% return on investment is very realistic.

Time is our biggest factor in success.  Just how big?  The numbers below show what it will take to retire with $1,000,000.

If you begin at age Invest this much per month
23 $400
25 $500
35 $1,000
45 $2,500
53 $5,000


At age 23, you're just starting your career.  You're not going to be earning a lot of money yet.  Plus you'll be paying rent, making car payments, paying student loans and all the expenses that come with starting your career.  Finding $400 a month isn't easy!  Let's hold off just a year or two...

Soon you're 25.  You've gotten a promotion at work so you're making more money, but still not a whole lot more that just a couple years ago.  But now it'll cost an extra $100 a month to retire with $1,000,000.  Even finding $400 in your budget is hard, let alone $500.  So let's just get some bills caught up and we'll go from there, right?

But it's even harder later.  By 35, you'll definitely be earning more, but you'll probably have a mortgage and perhaps children.  $500 a month won't get you there anymore - you need to DOUBLE your monthly retirement investment!  Finding $1,000 is even harder.

At 45 you're making still more.  But your expenses are higher too.  If you think children are expensive, try teenagers!  Making it even worse, they're only a couple years away from college!  The likelihood of having $2,500 a month is very, very small!

At 53, you're a little more than 10 years from retirement.  If you begin saving now, you're in a lot of trouble!  Your kids are probably out of college, and you may even have your mortgage paid off.  However $5,000 a month is going to virtually impossible.  If only uou had started investing 30 years earlier - because $400 a month is easy to find now!