# This is How To Retire A Millionaire At 65

Everybody wants a magic formula to become a millionaire. The reality is that there are no secret formulas, there is just plain and simple math. How much do you need to save each month to become a millionaire by the time you are 65? That depends on a lot of different variables. For example, if you had \$50,000 saved and you turned 65 in two months, then you would need to save \$425,000 a month.

However, if you started saving when you were 18, then the numbers are quite a bit different.

Before you do the simple division, let’s address the power of compounding and time. If you put \$5,000 into an investment tool that drew 8 percent interest, your money would double in 9 years. If you left it in for another 9 years, it would double again. In short, if you started saving when you were 18 and only invested \$5,000, your money would be worth around \$160,000 when you retired. If you put that same \$5,000 in an 8 percent invest when you were 45, you would only end up with about \$20,000. This is the power of compounding and time.

To illustrate this in another way, if you started at 20 years of age and invested \$2 a day, just \$61 a month, until you were 65 (considering a 12 percent interest rate and no taxes), you would have a cool million dollars to retire on. Not bad for cutting out a \$2 snack each day.

If you waited until age 30 to start your daily contributions, however, the daily amount would now need to be \$6.35, or \$193 per month. Still not too bad. A million dollars just by cutting out your Starbucks fix.

Things get more serious the longer you wait. Your daily savings goes up to \$20.55 at 40 and \$73.49 at 50 (\$2,235 a month).

The short of it is this: if you want to retire as a millionaire, write a viral app, or invest early, often, and at the highest interest rate possible.

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