Thursday, December 20, 2007

Can we become millionaire by saving?

Saving money is very important. If you are unable to save that much a year, or you are getting a late start, there is still hope. If you started at age 30, but could only save 5%, you would still become a millionaire by retirement at age 65. If you are playing catch-up and started investing at age 40, you would need to save about 11% a year to become a millionaire by age 65, but at age 50 you would have to save a nearly impossible 30% a year and your time frame would be so short that market volatility would play a bigger role in determining if you could retire or not. Is One Million Dollars Really That Much These days? Not really. Once you take inflation into account, being a millionaire today isn't as impressive as it used to be. For example, if someone was a millionaire in 1980, they would have to have about $1.9 million dollars in 2003 to match the wealth they had in 1980.



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