How Much Money Do I Need to Invest to Become a Millionaire?

People tend to think that it’s difficult to start with nothing and end up a millionaire, but in actuality it’s not that difficult if you take advantage of the magic of compound interest. Business Insider recreated a chart from a David Bach book to illustrate this point. My only issues are that it assumes a 12% return every year which is a little optimistic and that it focuses on age 65 when the full retirement age for social security has now been raised to 67 to people born after 1960.

BACH-bi_graphics_building a million-dollar retirement account

A 10% return is more probable and an 8% return is a bit conservative. I prefer to be conservative.

Book-Contributions-to-Become-a-Millionaire

If  you start when you’re younger is takes less money, over more time, to become a millionaire. Regardless of when you start, it’s important that you start. Having something is always better than having nothing.

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One thought on “How Much Money Do I Need to Invest to Become a Millionaire?

  1. Problem is with the value of the dollar it will take about three times that amount to be considered millionaire. A million is not really a milion.

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