MyEstateGuide.com

The United States is home to about 9 million millionaire households.¹ The ranks of the wealthy are growing at such a pace that an estimated 12 million U.S. households will be worth at least $1 million by 2010.²

If you aren’t already a millionaire, it may be time to get serious about reaching this essential benchmark. When you see the type of retirement lifestyle a million dollars can buy, you may decide that even this amount won’t be enough to meet your expectations.

$1 Million = $50,000
As you get closer to retirement, it’s important to consider shifting toward more conservative investments. If your portfolio were to suffer from a dramatic swing in the financial markets, it might not be able to recover in time for you to retire as planned. 

Assuming that a conservatively allocated $1 million portfolio earned a hypothetical 5% annual return, an investor could theoretically withdraw $50,000 per year and never run out of money. If the portfolio earned less than 5%, or if the owner also withdrew principal, the money would not last indefinitely. 

This scenario does not take into account the effects of inflation. If $50,000 doesn’t sound like much money today, consider how much less ­purchasing power a $50,000 income would have in 10 or 20 years.  

As you will see from the links we have included below, the amount someone would need to save each month to accumulate $1 million goes up dramatically as the accumulation period becomes shorter. The good news is that the earlier you start, the less money you have to contribute in order to reach your goal.  

Of course, these numbers are just examples. Your timetable for becoming a millionaire will depend on your risk tolerance, your planned retirement age, and other variables.

Setting out to become a millionaire may sound like a daunting task, but you might be closer than you realize.  Remember, the earlier you begin, the less difficult the journey may be.  We can help with planning, just give us a call at 888-550-5521.