How to become a Millionaire at 55 years old!

 This post is on: How to become a Millionaire at 55 years old! 

It may looks like an unachievable task to many, but really, if you look at the long term of 30 years, it is really not difficult!

Yes, the recipe here is the “30 years”! 

Imagine if you could save at least $300 per month every year starting from 25 years old and invest them immediately at a compounded annual return of 12%, when you reach 55 years old (30 years later), you would have accumulated a total of $1 MILLION!

Some people would question whether a compounded annual return of 12% is realistic? 

Well, the truth is, it is realistic based on history – S&P 500 index has grown by a compounded annual return of about 12% over the past 3-4 decades.

Now, some other people will again remark that 12% is history, future return may be much lower? 

Ok, that is a valid question, so it would be good to see how much per month you need to save over 30 years for different assumed returns to achieve $1 Million, so I make a tabulation of this data as below:

Return Assumed (%)	Amount you need to save per month ($)
12%	$300
10%	$445
8%	$680
6%	$1000

Ok, it is clear that even at a very low return of 6% (which is easily achievable), you only need to save $1000 per month to achieve $1 Million in 30 years time! 

So, how difficult is it to save $1000 per month for the general population in Singapore?