Daily Savings Required for Retiring a Millionaire by Age 65

Daily Savings Needed to Make Millionaire

Money grows from intelligent decisions. Few savers start with a great deal of financial knowledge.

Smart money is guided by investors who start early.  These are most likely to build enough experience to think and grow rich over time.

A definite major purpose of saving a set daily amount of money into an investment account as is recommended by David Back financial planner and author of the New York Times Bestseller “Smart Couples Finish Rich.” The book further explains that you don’t have to raise money to make money.

You just have to decide correctly.

Bach creates a chart in the book that shows that saving just $2.00 per day from the age of 20 yields $1,000,000 with a 12% return. The same return with $156.12 saved per day generates a cool million from the age of 55.

Start Age …..  Daily Saved

25 …. $3.57

30 …. $6.35

35 …. $11.35

40 … $20.55

45 …. $38.02

50 …. $73.49

55 … $156.12

Notice how saving small amounts each day can create enormous retirement wealth. A few dollars from an early age can be done by cutting out Starbucks coffees here and there.

Another author in the same bestseller club emphasizes the importance of saving through an employer sponsored 401(k) up to the matching.  The Roth is best for no tax payments after retirement. The solo 401(k) is best for tax deductions.

And the Roth 401(k) is the king of tax cleansers in retirement because of the high contribution limits. All this is explained in the book “I Will Teach You to Be Rich” by Ramit Sethi.

For more training in your retirement account management enroll in this Udemy course entitled ‘How to Build a Massive Retirement Plan from Scratch!here.

Doc Brown

Dr. Scott Brown is an associate professor of finance at the AACSB accredited Graduate School of Business of the University of Puerto Rico.  His research on wire service investment newsletter returns has been featured by the CFA Institute.