Terry Herr, CFP®, CLU
Everyone wants to be a millionaire, here are 12 ways that might help you have $1 Million by the time you reach age 65.
Hey welcome back to the Prosperity Blogcast . Today I'm going to show you 12 ways to become a millionaire.
My wife says it's just one way, shown 12 different versions of the same way, but I think it's 12. Because I'm going to show you two different rates of returns using a lump sum and also on a monthly basis - So in my book that's 12 different since we're going to look at it in three different age groups so let's start..
Let's assume for a moment you can get 6% rate of return on your money and you’re age 25. If you would put away $91,262 as a single lump sum, by the age of 65 you would have approximately a Million Dollars. On a monthly basis, that's $502 a month
At age 35 it's a $166,402 as a lump sum and $672 per month
At age 45, $302,042 as a lump sum or $2,164 as a monthly contribution between now and the age of 65 you can accumulate a million dollars - that's assuming a 6% rate of return fixed annual and that's possible in a moderate portfolio.
Now let's take a little bit more aggressive approach to our investments and see what happens if we are able to get a 10% rate of return.
At the age of 25, you would have to put a lump sum away of $18,622 or $158 a month - Certainly $158 a month is manageable
At age 35 your lump sum amount would be $50,410 or a monthly contribution $442 a month
At age 45 your lump sum would be $136,462 or $1,317 per month
All of these options would get you to approximately a million dollars or maybe a little bit over a million dollars by the time you reach age 65. They're all very manageable - Focus on the monthly number because the monthly number is something that is really attainable. Something that you can do through a payroll deduction plan or just through monthly savings in your own account but certainly you can be a millionaire!
And those are 12 different ways to do it!
So if you have any questions, concerns feel free to call us here at Herr Capital Management.
Thanks for your time and have a Great Afternoon!
This is a hypothetical example for illustrative purposes. It is not a prediction or guarantee of actual results. Any investment may result in the loss of principal. This is not intended to represent the value or performance of any specific investment or investment portfolio. Rates of return exclude fees or expense that may be associated with making an investment.