If your net asset value is million dollars, how did you get there and what would be enough for retiring?

Question

I am sure, there are different ways to get there, please only list legal ways to get there. People sharing there expereinces will help motivate others. Lucky strike or hard earned please share.

Answer 1

Investing $100/month from age 20 to age 60 in good mutual funds will result in more than $1 million. That assumes the long term average return of the US stock market (12%). You can draw 8% ($80,000) from that and leave 4% annual growth to cover inflation.

Answer 2

It's down to earning and investment.

The amount you need in retirement depends on the individual. At a very safe 5% (savings account, CDs) you can expect $50,000 in income from $1million. Most people should plan to have enough to cover 80% of their pre-retirement income.

However, it really isn't wise to simply put the $1million aside - inflation will eventually eat away at that income, and you will have problems maintaining your lifestyle. Create instead a balanced portfolio using CDs, and bond and stock mutual funds. This will spread your risk, ensure you have liquidity when you need it, and still return over the longer term around 8% or so.

Answer 3

If you had that Million in a savings earning just 10%, that would give you $100,000 a year to live off of without even touching the million.