How Long Does it Take to Become a Millionaire?

So, you are putting money away for retirement. Do you know how long it will take you to become a millionaire? Check out the chart below:

Here's how it works. In the left hand column, you'll see a dollar amount. This is an annual savings amount. For this chart, I am assuming that the yearly amount invested is invested at the beginning of each year. The row across the top is the expected yearly growth rate. The numbers in the grid are the number of years it will take to reach $1,000,000 based on the yearly savings amount and the expected growth rate.

        8%  10%  12%  15%
$1,200  54  46   40   34
$1,500  51  44   38   33
$1,800  49  42   37   31
$2,000  48  41   36   31
$2,200  47  40   35   30
$2,500  45  38   34   29
$2,800  44  37   33   28
$3,000  43  37   32   28

The grid illustrates the importance of starting early. The earlier you can start, the better are your chances of meeting your goal. Also, starting early will allow you the benefit of being able to invest more conservatively with less risk, if you choose. So, start saving for your kids NOW!

Tags: Investing, Becoming a Millionaire