Can You Retire a Millionaire by Investing Just $10 a Day? The Answer Is Yes -- Here's the Math.

Does the goal of saving enough money for a comfortable retirement seem so far out of reach that it's not even worth trying? That's understandable. The $1.26 million that Northwestern Mutual says the average American thinks they'll need to retire comfortably is a large, intimidating number.Don't dismiss the power of doing just a little bit every day, though. While this approach has a painfully slow start, once it reaches a tipping point, growth can become explosive. In fact, if you do it for long enough, tucking away a mere $10 per day can get you to the million-dollar mark. Here's the math.To illustrate the point, a handful of reasonable assumptions are necessary. Chief among them is the assumption that you'll be investing this money in an S&P 500 index fund, which continues delivering the annualized gains of about 10% that it has averaged over the long term. Let's also assume you only set aside $10 on weekdays when the stock market is open. That's about 250 days per year, or $2,500 of annual contributions. Finally, the math assumes this is all being done within an IRA, so your progress made along the way won't be impeded by taxes.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool