How Much Do You Need to Save per Month to Retire With $10 Million?

A man standing in his kitchen lit by the glow of his laptop screen.

Image source: Getty Images

It’s going to take some serious saving to reach this amount.


Key points

  • Savings requirements to retire with $10 million depend on your age and your return on investment.
  • With a 10% annual return, the amount needed ranges from $1,159 per month for 20-year-olds to $26,228 per month for 50-year-olds.
  • You’ll need to regularly increase your income to have a chance at saving so much money.

For people who save diligently, retiring as a millionaire or even a multimillionaire is a realistic goal. It’s quite a bit harder to retire with $10 million, which puts you near the top 1% of net worths. If this is a goal of yours, or if you’re just curious about what it would take, we ran the numbers to find out.

Here’s how much you need to save per month to retire with $10 million

To reach $10 million by retirement, your age and your portfolio’s annual return determine how much you need to save. If you start at a younger age, you won’t need to save as much per month. Returns vary, since stock prices go up and down, but a 10% annual return is a reasonable estimate. That has been the average stock market return for the past 50 years.

With a 10% annual return, and a goal of retiring at 65 with $10 million, here’s how much you’d need to save by age:

Bonus Offer: Score up to $600 when you open this brokerage account

Discover: Best online stock brokers for beginners

  • If you start at 20 years old, you need to save $1,159 per month.
  • If you start at 30 years old, you need to save $3,075 per month.
  • If you start at 40 years old, you need to save $8,473 per month.
  • If you start at 50 years old, you need to save $26,228 per month.

Yes, those are some very big numbers. They also get a whole lot bigger the longer you wait. If you’re in your 20s or early 30s and you make a high salary, then it could be possible to save $10…

Read complete post here:
Source link