Not long ago, I participated in a conversation on NetworthIQ: “Struggling with breaking the first million mark“. The question posed was about mental focus and persistence needed to get to that magical $1 million mark. However, it got me thinking about the mathematical aspect of it.
As you can see from the chart, if a person invests $15,000 per year starting at age 25 and the investment gains on average 10% a year, he can get to $1 million mark by 45. The first million took 20 years! But if you keep going down the table, it only takes…
Not only is this mark psychologically challenging, it is also mathematically challenging.
Now back to my situation. If I can manage to save $1 million by the age of 43, I might have a shot at making the $10 million mark!
What do you think?
PS: I also saw a similar analysis by another PF Blogger not long ago. I left a comment saying it was an excellent illustration. If you are that blogger, please let me know so I can link to you.