Over a decade ago, Clark revealed how a teen who starts saving at 15 and puts aside $2,000 for 7 years will have more than $1 million in retirement.
Through time, people have contested this claim and the methodology behind the numbers.
How much to save for a millionaire by age 65
This presumes a 9.4 percent average profit annually, that has been the average return on the stock exchange since 1926, according to The Chicago Tribune article.
Saving money early — not often, only early — will still ultimately lead you to $1 million in prosperity at the time of retirement. If you continue saving after your 21st birthday, you would wind up with somewhere between $2 and $3 million in retirement.
The key is to save ancient
That’s the toughest part. Most individuals don’t begin considering saving until their 40th birthday. Sean Williams from Fool.com did a research in 2016 how much one wants to save annually for a (tax-deferred) millionaire by age of 65. His calculations assumed a moderate 7% growth rate, beginning with NO money down.
Age 20: $3,500 yearly
Age 25: $5,010 yearly
Age 30: $7,234 yearly
Age 35: $10,587 yearly
Age 40: $15,811 yearly
Age 45: $24,394 yearly
Age 50: $39,795 yearly
Age 55: $72,378 yearly
Age 60: $173,891 yearly