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Here's how much 45-year-olds would need to invest each month to become a millionaire by the traditional retirement age: If making investments that yield a 3% yearly return, a 45-year-old would have to invest **$3,100 per month** to reach $1 million by age 65.

Retirement experts have offered various rules of thumb about how much you need to save: somewhere near $1 million, **80% to 90% of your annual pre-retirement income, 12 times your pre-retirement salary**.

Here's the breakdown: **A 30-year-old making investments that yield a 3% yearly return would have to invest $1,400 per month for 35 years to reach $1 million**. If they instead contribute to investments that give a 6% yearly return, they would have to invest $740 per month for 35 years to end up with $1 million.

If you're interested in short-term investment options, look into **Treasury bills, notes, bonds, and Treasury inflation-protected securities (TIPS)**. For example, Treasury bills are good short-term investment options that range from a few days to several weeks, according to Treasury Direct.

According to a report about the US millionaire population by age, the average age of US millionaires is **62 years old**. About 38% of US millionaires are over 65 years of age. Only 1% are below 35. Millionaires on the West Coast are slightly older, as well.

Tax-advantaged investing first

In order to max out a tax-deductible 401(k) with a contribution limit of $19,500 per year, you'd be contributing **$1,625 per month** – which knocks a pretty convenient, tax-deferred chunk out of your monthly $3,583 obligation to your future millionaire self.

**Yes, saving $2000 per month is good**. Given an average 7% return per year, saving a thousand dollars per month for 20 years will end up being $1,000,000. However, with other strategies, you might reach over 3 Million USD in 20 years, by only saving $2000 per month.

A net-worth millionaire is **someone who has a net worth of at least $1,000,000**. Net worth is a fancy way to say 'what you own minus what you owe. ' If that amount ends up being $1,000,000+, you're a net-worth millionaire." These definitions have distinct differences that affect real wealth calculations.

Those who do have retirement funds don't have enough money in them: According to our research, 56- to 61-year-olds have an average of $163,577, and those ages 65 to 74 have even less in savings. 11 If that money were turned into a lifetime annuity, it would only amount to **a few hundred dollars a month**.

Examples of cash equivalents are **money market mutual funds, certificates of deposit, commercial paper and Treasury bills**. Some millionaires keep their cash in Treasury bills that they keep rolling over and reinvesting. They liquidate them when they need the cash.

Let's say you want to become a millionaire in five years. If you're starting from scratch, online millionaire calculators (which return a variety of results given the same inputs) estimate that you'll need to save anywhere from **$13,000 to $15,500 a month** and invest it wisely enough to earn an average of 10% a year.

Senator Elizabeth Warren popularized the so-called "50/20/30 budget rule" (sometimes labeled "50-30-20") in her book, All Your Worth: The Ultimate Lifetime Money Plan. The basic rule is to **divide up after-tax income and allocate it to spend: 50% on needs, 30% on wants, and socking away 20% to savings**.

But if you can supplement your retirement income with other savings or sources of income, then **$6,000 a month** could be a good starting point for a comfortable retirement.

1. Keep essentials at **about 50% of your pay**. Things like bills, rent, groceries, and debt payments should make up about 50% of a gross (before taxes) paycheck. Remove this money from your primary account right away, so you know your needs will be covered.

**Some experts suggest saving as little as 10% of each paycheck, while others might suggest 30% or more**. According to the 50/30/20 rule of budgeting, 50% of your take-home income should go to essentials, 30% to nonessentials, and 20% to saving for future goals (including debt repayment beyond the minimum).

It depends on your rate of return. To generate 4000 a month **at a 5% annual yield, you'd need to invest $960,000.** **At a 10% return, you'd need $480,000.** **And at a 20% return, you'd need $240,000 invested**.

**If you start saving $1000 a month at age 20 will grow to $1.6 million when you retire in 47 years**. For people starting saving at that age, the monthly payments add up to $560,000: the early start combined with the estimated 4% over the years means that their investments skyrocketed nearly $1. 1million.

If you invested $35 a week in good growth stock mutual funds with a 10–12% rate of return, here's what your nest egg could look like over time: **In 20 years, you could retire with $115,000 to $150,000.** **In 30 years, you could retire with $343,000 to $530,000.** **In 40 years, you could retire with $960,000 to $1.7 million**!

In the U.S. overall, it takes a net worth of **$2.2 million** to be considered “wealthy” by other Americans — up from $1.9 million last year, according to financial services company Charles Schwab's annual Modern Wealth Survey.

A millionaire is somebody with a net worth of one million dollars. It's a simple math formula based on your net worth. **When what you own (your assets) minus what you owe (your liabilities) equals more than a million dollars**, you're a millionaire. That's it!