Follow this simple chart to become a millionaire

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Follow this simple chart to become a millionaire

Editor: Johnathan Meyers | Tactical Investor

How to become a millionaire

If becoming a millionaire is something that’s been on your mind, there’s a helpful chart that reveals what it will take to get there!

Financial blogger Lyn Alden published the following chart on her website that shows how much you need to save every month, plus the annual rate of return, in order to reach millionaire status in 25 years.
According to the chart, a conservative investor would need to save $3,000 a month to end up with $1 million in 25 years, given a 4% annual rate of return.

However, assuming a 9% rate of return, one would only have to invest $1,500 a month to accumulate $1 million in that time.

To give you some context, the average annual rate of return on a 401(k) is typically somewhere between 5% and 8% — although the exact numbers depend on a variety of factors.

It’s important to note that this chart also takes inflation into account.

“I made the matrix inflation-adjusted, using an assumption of 2.5% annual currency inflation over the period,”  Alden wrote on her blog. “So when you see a million dollars on the table, it means a million dollars in terms of today’s purchasing power rather than like, the less-valuable inflated Monopoly-money of the future.” Full Story

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