Here are steps to follow in order to achieve this goal. The examples below are based on an investment you put into your 401K or into any personal investment account with a 6% rate of return.
1. For 20-year-olds: Invest $190.00 biweekly or $380.00 monthly. Your investment will amount to $1,001,358.
2. For 25-year-olds: Invest $262.50 biweekly or $525.00 monthly. Your account will amount to $1,006,406.
3. For 30-year-olds: Invest $362.50 biweekly or $725.00 monthly. Your account will amount to $1,000,710.
4. For 35-year-olds: Invest $511.00 biweekly or $1022.00 monthly. Your account will amount to $1,000,800.
5. For 40-year-olds: Invest $736.00 biweekly or $1472.00 monthly. Your account will amount to $1,000,343.
6. For 45-year-olds: Invest $1100.00 biweekly or $2200.00 monthly. Your account will amount to $1,002,421.
7. For 50-year-olds: Invest $1735.00 biweekly or $3470.00 monthly. Your account will amount to $1,000,430.
These are the minimum investment amounts to reach your million dollar nest egg goal, however, you could obviously add additional money to reach your goal even faster. Conversely, you could invest less but would need to work additional years to get to that million dollar mark. The least controllable factor is the rate of return - so, if it goes higher than 6%, you’ll reach your goal sooner - if it goes lower than 6%, then you’re back at investing more or doing it longer.
There you have it, folks. On a personal note, I wish I had this information given to me when I was 20!