Becoming A Millionaire

 

BECOMING A MILLIONAIRE  - BE FIT FINANCIALLY

 

It may surprise you how quickly you can accumulate a million dollars.  Here are two examples of what you would have to set aside each year to reach the goal of million dollars and be a millionaire!

One example is for a 35 year old who wants to be a millionaire by age 60 and the second is for a

50 year old who wants to be a millionaire by age 65.

 

35 year old Millionaire at age 60

A 35 year old who wants to be a millionaire by age 60 and currently has a nest egg of $25,000.  Lets say you have a before tax return earnings of 8% annually and are in a federal marginal tax bracket of 25% and state marginal tax bracket of 5% and assume a 3% inflation rate.

 

Based on existing savings of $25,000, you would need to save $5,149 indexed at 10% annually in order to become a millionaire by age 60.   However, a million dollars today will not be worth the same in 25 years.   One million dollars adjusted for inflation of 3%, you will need $2,032,794.  To reach that goal by age 60, you will need to save $11,105 annually (indexed at 10%).

 

50 year old Millionaire at age 65

A 50 year old who wants to be a millionaire by age 65 and currently has a nest egg of $200,000,  and a before tax return earnings of 8% annually and is in a federal marginal tax bracket of 25% and a state marginal tax bracket of 5% and assumes 3% inflation rate.

 

Based on existing savings of $200,000, you would need to save $11,034 indexed at 10% annually in order to become a millionaire by age 65.   One million dollars adjusted for inflation of 3% , in 15 years , you will need $1,512,590.  To reach that goal by age 65, you will need to save $21,897 annually (indexed at 10%).

 

No matter what your goals may be, the purchasing power of your future dollars will be affected by taxes and inflation and must be figured in your goal planning because they reduce the purchasing power of your future dollars!  

 

Here's a strategy to maximize your growth potential:  

Take advantage of any and all tax savings benefits available to you.   Do it now while you have options. Some may include,  ROTH IRA, IRA, 401(k), 457 or 403(b), Profit Sharing Plans, SEP, matching or other tax reduction strategies. Your specific options and results vary according to your situation.  

 

A comprehensive and personalized plan will give you specific answers to your lifestyle and give the future you peace of mind to live the life you love and love the life you live!  

Get clarity and results for the future you and your family.

 

Best of Success to Be Fit Financially,

Michele Nami Von Hoven, RFC,IAR

 

www.BeFitFinancially.com

http://www.linkedin.com/MicheleVonHoven

www.twitter.com/Bfitfinancially

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