How to Become a Millionaire by Retirement at age 65

For most people retiring a millionaire is the goal. We dream about having a million dollars in the bank for retirement. For many people this goal of being a millionaire is attainable even you don't make a lot of money, but the keys is to have a plan of action and start saving early and often.

Difficulty: Easy

Instructions

Things You'll Need:

• Bank account - savings or Money market
• 401K plan or 403b plan
• IRA account

1. Start saving money today for retirement! Do not wait any longer, start with the change you come home with each day or set a small goal of $5 or 10 dollars a day to start. To become a millionaire by age 65 you most put a savings plan into action today. The goal of becoming a millionaire can be reached even if you have a modest income. The goal of having $1,000,000 in the bank will be harder for those with lower incomes but still can be achieved with adisciplined approach.

2. If your employer has a 401K or 403b savings plan sign up, and get started as soon as you can even if it is just 4 or 5% of your gross income. Keep in mind the money is saved pre-tax dollars, so there is also a tax benefit to saving in a qualified plan such as a 401K plan. If that is not an option open an IRA account. In an IRA account you can save pre-tax dollars as well.

3. Make sure your savings is going into a balanced portfolio of stocks and bonds. Put your savings in 2 or 3 balanced mutual funds. Over the long term a balanced portfolio should return 7% annually. There will be ups and downs in the stock market so keep the focus on the long term. Seek professional help in selecting a few good mutual funds or due your own research. Creating a balanced portfolio is the key to becoming a millionaire by age 65.

4. How much you will need to save each month to reach the goal of becoming a millionaire by 65 will depend on how old you are today. If you start by age 20 or 25 it will be much easier to reach the $1,000,000 goal for retirement at age 65.

5. Below are the savings goal you will need to meet to become a millionaire by age 65, depending on what age you start saving:
   
   25 Years old:
   Save $383 per month or $12.60 per day
   
   30 Years old:
   Save $559 per month or $18.37 per day
   
   35 Years old:
   Save $825 per month or $27.13per day
   
   40 Year old:
   Save $1,243 per month or $40.87 per day
   
   45 Years old:
   Save $1,935 per month or $63.60 per day
   
   50 Years old:
   Save $3,183 per month or $100.66 per day

6. Get started today create a plan and put it into action. And do not get discouraged if you are not meeting your savings goal each month or the return on your investment portfolio is lagging, because if you keep at it you may to be a millionaire by age 65 but you will have a few hundred thousand saved.

[schuschan]

on 8/30/2009 Great article!

[johnsoncm]

on 8/11/2009 Great tips. It's also important to re-allocate your assets on a regular basis. That way you keep the gains in those funds. That breakdown at the end is priceless info. 5* and recommend.

[FrazzledNanny]

on 7/13/2009 Thanks for the great breakdown in step #5. I'll pass this onto my family and friends. 5*

[winnster]

on 6/23/2009 These are great ideas. I'm going to have to start soon!

[sluna75]

on 6/9/2009 I love your information in step 5. I'll be 34 this year. I need to grow my income with ehow up to at least 27.00 day in order to reach my goal. Stay at home moms work harder then any other job, but don't get the money. 5 stars