Retire a Millionaire! Everyone can do it!

Don't believe me?  Check this out.  The average household in America that makes just $50,000 a year can retire a millionaire.  If after you have paid off all your debts, not including your mortgage, you invested just $100 per month into a good growth stock mutual fund with a good track record that averages 12% or more per year for 39 years, you will retire with $1.5M dollars.  That's right.  That means if you start doing this at age 30 and continue till age 69, you will be a millionaire.  Now, you have only contributed $47,000, but with the power of compound interest, you end up with a little more than a million dollars.  Pretty cool huh?  And this is assuming that you never get a raise, and you never raise the monthly amount that you contribute.

What if you double that?  You put in $200 per month for 39 years.  At age 69 you will have $2.1M and your million dollar year is at age 63 or year 33.

What if you went crazy and with all that money that you used to pay to credit card companies per month after your debt free and you put in say $500 per month, what would that get you?  That would make you a millionaire in year 26 or age 56 (if you start when you're 30) and at age 69, you would have $4.6M dollars.  Now that will change your family tree.

Maybe you're a late starter like me at age 40.  No need to worry.  You also can retire a millionaire.  Yes, you'll have to save a little more and be more choosy about your mutual fund investments but you can still do it.  Check it out.  The maximum that you can put into your Roth IRA is $5,000 per year per spouse so that's $10,000 per year or $833.00 per month you can invest tax free.  If you invest in good growth stock mutual funds with a good track record that make at least 12% average per year and you max out your Roth IRA even for just 5 years, at age 67 you would have one million dollars for retirement.  If you maxed it out for 25 years, you would be a millionaire at at 61.  That will give you $100,000 a year in retirement income.  Have fun with that!

None of this is far fetched and all of this is very doable for the average American household.  Now if you're wondering about where you can get the 12%  average annual return, you'll have to subscribe to my blog and tune in for the next post.  Thanks and God bless you and your finances.