[Hog's Gone Fishin]

Originally Posted by lewdog

Recent article I was reading about hitting the $1M mark by retirement age.


For our example I’ve made a few assumptions to keep the calculations as simple as possible. Using Bankrate’s investment calculator I’ve assumed $0 initial investment, a 7% rate of return, a contribution frequency of once a year, and a compound frequency of once-yearly. We’re also assuming that all taxes will be deferred, so keep in mind that tax implications aren’t reflected in the eventual $1 million.



With these criteria in mind, here’s how much you’d have to save annually to reach $1 million by age 65.

Age 20: $3,500 annually
Age 25: $5,010 annually
Age 30: $7,234 annually
Age 35: $10,587 annually
Age 40: $15,811 annually
Age 45: $24,394 annually
Age 50: $39,795 annually
Age 55: $72,378 annually
Age 60: $173,891 annually


As is always told, it pays to start early.

Thanks for that, I've been talking to my daughter about that. She just turned 16 and has $2500 in a mutual fund that grandma put in . But she also has $5000 in her savings account she has accumulated. I'm trying to convince her to let me move her savings into the mutual fund. The mutual fund averages a 9% return. Her savings account brings 0.50%