How to make a million dollars with only $10K a year in savings?

Question

Let's say I'm only able to set aside $10K every year. Does anybody have any ideas on how to turn that into a million dollars in about 15-20 years without resorting to any risky stock investiments?

Answer 1

If you know the exact amount of the money you will be contributing and the approximate number of years, what you need to find out is the expected rate of return for the money to reach $ 1mln. Looking at the calculator of compounded interest here:
http://www.moskalyuk.com/blog/compound-interest-calculator/
with an initial start of $20,000 and monthly contribution of $1,000 every month for 20 years in a row your total would be $1044338.35 assuming you have an 11% rate of return.

As any financial advisor would tell you, this kind of return is hard to achieve, and therefore involves some risk. Very few companies out there grow by more than 11% a year, and those that do sometimes do not repeat their successes.

A combination of aggressive stocks and some bonds would probably yiled somewhere close to 11%, but once you get over 7-8%, this represents certain risk.

Answer 2

10K a year will turn into $4 million in 25 years invested in 10 percent in a growth stock mutual fund. Think Vanguard or Fidelity.

Answer 3

Here is EXACTLY what you do-
1. Set aside your 10k each year into a money market account.
2. Wear nice clothes and shower regularly.
3. Meet a very wealthy woman.
4. Marry her.

Good luck!

Answer 4

First I would give my neighbor the $2000.00 he just got billed for emergency surgery for his beloved german shepherd. Then I would landscape my backyard, and my daughter's. I would get a new car and one for my son. I would also do some special things for the people I work with because we are public servants who are pretty much treated like cr*p by the public we serve. I would also like to do a special program I want funding for, for teens that are in trouble that will help to build their self esteem, while aslo generating money for them and for their future.

Answer 5

Why not be a lender on prosper.com.

You can charge higher interest rates than you would make in a bank, and if you loan it out in small amounts, your losses would be minimalized.

Answer 6

high yield risky stock investment, moderate stock and safe stock, watch it closely, be ready to move it...take all interest yearly and put it to the safe stock...stock is the only growth.

Answer 7

YEA get a better jobg and save more and make more!!!!

Answer 8

easy....email me...