What Does It Take to Become a Millionaire?

Ever wonder what it would take to become a millionaire?
What would you do?
Would it be enough to retire and live comfortably?

Most people never find out — not because it’s impossible, but because they never did the math.

First, let’s define it. Merriam-Webster defines a millionaire as “a person whose wealth is estimated at a million or more, as of dollars or pounds.” So anyone who has a net worth of a million dollars is a millionaire. You don’t have to make a million dollars per year.

Let’s take a moment to think about what it would take to become a millionaire. Could you do it? Could you be the first in your family? Could you help set your children up to be the first?

I’ve heard many people say, “It’s not for me,” or “I don’t make enough.” I’ve heard all of it. And I get it.

So let’s look at what the numbers actually say.

Using a 10% historical S&P 500 return before inflation and NerdWallet’s compound interest calculator, here’s what it takes to retire at 60 with $1 million.

This chart uses historical returns. Historical returns are not a promise of performance.

As you can see, the earlier you start, the easier it is to accumulate wealth through compound interest.

Now, if you’re like me and start later, that’s okay. I started between the 30–35 range. It may be a harder path, but it can be done. I’m on this path with a family of five, and I’m the main income earner. I want you to know you don’t have to make a ton of money to save to be a millionaire.

A million might not be your number, and that’s worth figuring out.

Retirement planning can actually be a fun exercise: dream big, think about the life you want, and work backward from there. Aurora Financial Strategies can help you do exactly that.

Contact Aurora at 765-450-7087 for a free consultation, or message me directly to set up an appointment.

Brian Iles
brian@auroramgt.com
574-709-3026
2705 S. Berkley Rd., Suite 1B
Kokomo, IN 46902