How to Save $1,000,000

Happy Monday, wealthy people! 

In today’s email:

👉 Stock Market Update

👉 How to Save $1,000,000

👉 The world’s most Gender-Equal Companies

Grab your latte and let’s get started!

– Margarita T., CFA


Join beginner or intermediate investors to discuss index investing! Low-cost index funds are a must in modern portfolios. But there are more than 3,000 index funds in Europe and more than 10,000 worldwide.

👉 How do you choose the right one?

👉 Where and how do you search for them? 

👉 What is a reasonable fee for these products?

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How do you save $1,000,000 for retirement?

Assumes 8%* return (not guaranteed), deposits at the beginning of each month. Does not take into account inflation, taxes or trading expenses.

In the above table, you see four scenarios with amounts and timelines required to get to $1,000,000.

The earlier you start investing, the faster you can stop adding money to get to that $1 million.

If you start at age 20, you only have to invest $300 a month for 15 years; then you stop adding more money but keep it invested. By age 65, that could grow (not guaranteed) to more than $1 million. The amount of money YOU put in is only $54,000. Not a bad deal at all. Anyone has a spare time-traveling machine? I need to have a talk with my 20-year-old self.

If you start investing at 35, you would need $850/month for 20 years then keep it invested for another 10 years until you reach 65. That gets you to a $1 million in savings by 65.

You can also see the huge impact of saving at 45 vs 55. At 45 you need to invest $1,700/month for 20 years to reach a million, and at 55 you need $5,600/month for 10 years. Those extra 10 years as a 45-year-old make all the difference.

There are many paths to get to the proverbial $1,000,000 by retirement. It's never too late to save, you just have to adjust the amounts when you start later. 

These numbers can help you visualize the path towards the one million, if this number is your goal. Do the math that gets you toward a number that's realistic for your country, income and circumstances. Knowing the path is a good starting point to actually getting you there.

*this 8% return is not guaranteed. In the last 30 years, as of December 31, 2023, the MSCI World Index USD (Net), which is a good indicator of global stock markets (and there are many low-cost index funds that track this index), returned a little over 8%. It does NOT account for inflation (which averages 2.2% in Europe and 3% in US over a long term), taxes or other trading expenses. This is not financial advice. Investing involves risk, including loss of principal. Indexes are unmanaged.


🗞️ Article: MIT’s 10 Breakthrough Technologies of 2024.

🗞️ Article: The success of weight-loss drug Ozempic has turned Novo Nordisk into Europe’s biggest company.

🎬 Movie: “This is not financial advice” about the guy who made millions (and spoiler alert: lost them) with Dogecoin.

📚 Book: Quite Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required. An inspiring read of self-made millionaire Kristy Chen, who retired at age 31.

⚙️ Worksheet: Our Financial Goals Tracker.xls you might have missed from last week.


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Finance Latte AB is not a registered investment advisor. This content is for informational purposes only and should not be interpreted as investment or tax advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice. Past performance does not guarantee future results. Market indexes are unmanaged and cannot be invested into directly and are not meant to depict an actual investment. View our Privacy Policy and Terms of Service.