Picking up Nickels

Monday, October 09, 2006

When will I be a millionaire?

According to the CNNMoney.com Millionaire Calculator, I will join the millionaire club in April 2014. Obviously, this is a very basic tool that makes quite a few assumptions, but it is an interesting data point to consider.

The calculator came to this conclusion assuming an annual 8% return using the account balance data from my September 2006 Financial Asset Roundup, my 2005 income tax brackets (5% state, 25% fed), and estimated annual savings contributions ($15k SEP, $4k Roth, $5k taxable):


I also wondered where I would be in twenty years. Using the same data with the CNNMoney.com Savings Calculator, I will have almost 3 million dollars in the year 2026:


I realize that many things can change in the next twenty years, but it is pretty good motivation to see the rewards of saving and investing over the long term. The best part is that these numbers could be on the conservative side if and when my wife returns to the workforce.

2 Comments:

  • A million by 2014 is not bad at all. With that goal in mind, I am pretty sure you will get to it much faster than what CNNmoney predicts.

    By Blogger GolbGuru, at 10/9/06, 2:39 PM  

  • I suppose it's possible, but I would need some significant cooperation from the stock market to get to 1 million much sooner than that.

    Winning the lottery could also do the trick... :)

    By Blogger Frugal Frugalson, at 10/10/06, 8:37 AM  

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