If you have 40 years until retirement

Those with the longest investment horizon are in the best shape, thanks to the magic of compound interest.

If you start early and retire late, you could retire a millionaire by saving just $179 per month, assuming a 10% rate of return. Using a more conservative 6% rate of return, you will need to save $522 per month.

If you have 30 years until retirement

Waiting just 10 years has a huge effect on the amount you’ll have to save to reach your goal. Even with an average annual return of 10%, you’ll have to save $481 per month to get to $1 million before you retire. At 6%, you would need to save $1,021 per month.

If you have 20 years until retirement

The longer you wait to start saving, the more cash you’ll have to put aside each month to reach your goal. If you wait until retirement is 20 years away, you will need to save $1,382 per month to hit the million-dollar mark, assuming a 10% return. At 6% you will need to save $2,195 per month!

If you have 10 years until retirement

As you can see, waiting until the last 10 years before retirement is a dicey strategy. At 10% returns, you would have to save $4,964 per month to reach a million dollars. That’s pretty tough to do, especially if you haven’t built up the habit of saving consistently over your lifetime.

If the returns were lower, it seems even more impossible: at 6%, you would need to put away $6,125 per month to get to a million.

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