How much do you need to save monthly to retire as a millionaire?

Almost everyone wants to become a millionaire. At first glance, this goal is unattainable. Yahoo tells you how to make the right investments and how much money you need to save to eventually have a seven-figure retirement income.

To understand how much you should save, you need to look at what a 35-year-old person should invest in every month to become a pensioner. millionaire.

What does it take to reach millionaire status?

If you are 35 years old today, your full retirement age (the age when you can claim a standard, unreduced Social Security benefit) is 67 years old.

If you want to retire at 67 with $1 million, here's the amount you'll need to invest each month:

• $916,86 per month – with an annual deposit return of 6%;
• $414,30 per month – with an annual deposit return of 10%;
• $273,35 per month, with an annual return on investment of 12%.

Even in the worst-case scenario from a profit perspective, your annual dues should only be $11 per year. Considering that the average salary for people aged 002,32 to 35 in 44 was $2023, this may be doable. Especially when you consider the tax benefits for contributions to retirement accounts and 67(k) matching funds that employers offer.

On the subject: Personal experience: extreme savings helped me buy two houses in New York on a teacher's salary

However, the main thing is to start investing wisely as early as possible.

Get started as soon as possible and make the right investment

When you're 35, time is on your side. You have decades to grow comprehensively and create your riches. Unfortunately, procrastination can seriously derail your efforts to become a millionaire.

In fact, if you wait ten years and start at 45, your monthly minimum investment will jump to $900,86 and end up at $1 million at age 67, even with an average annual return of 12%. With a yield of just 6%, you won't reach your goal unless you save $1920,46 each month, which is probably out of reach for most.

Choosing the right investment is critical

For most people, the easiest option is to invest in an S&P 500 index fund. The S&P 500 has earned an average annual return of about 10% over the previous 100 years, assuming dividends are reinvested.

S&P 500 index funds are easy to buy, fees are low, risks are minimal, and very little investing knowledge is required. Although the income you receive has a lower ceiling than if you bought individual stocks. In addition, you take on less risk and don't put all your eggs in one basket.

Additionally, you will need the right percentage of your portfolio in stocks. An overly conservative approach makes it difficult to achieve the required profit, while an overly aggressive approach increases the risk of losses. Subtracting your age from 110 gives you a good idea of ​​how much of your portfolio should be invested in stocks. You can use this money to buy investments in which you believe most.

With the right mix of investments and steady, consistent investing over time, living a millionaire's life can become your reality.