How to be a Millionaire Feb 21, 1999. It's easy. All you have to do is save $200 a month in a growth mutual fund for the next 40 years and you'll have one million dollars by the time you retire. Oh, you can't save $200 a month. Well, that is what it takes. I'm sure that if you put away $50 a week and at the end of the month put it into a mutual fund at an average rate of 8% you'll have that windfall. I'm not saying that will be enough for your retirement, but it will help. Who knows what the next 40 years will bring! At least you won't be in a bind, and of course you'll have Social Security to bring up the rear. Between 1926 and 1996, the stock market as measured by the Standard & Poor 500 index returned 10.7% a year on average, including income from dividends. By investing the same number of dollars at regular intervals over time you buy more shares when stock prices are low and fewer shares when stock prices are high, virtually assuring a satisfactory average purchase. You may ask, "How much do I keep in stocks and cash?" The rule of thumb is you subtract your age from 100. Say you're twenty five years old, subtract that from 100 and you have 75. So invest 75% in stock funds. The rest may go into bonds or bond funds. I always like straight bonds like U.S. Treasuries. Put Treasuries in five and ten year intervals. Always remember that the higher the percentage of stocks in your portfolio, the more you will receive in return, but the risk is greater. The big advantage you have at a young age is time. All you have to do is save $200 a month, every month!! It feels good to be a millionaire! George

Resources The 401(k) Millionaire - In simple, accessible language and clear, detailed steps for financial success, "The 401(K) Millionaire" thoroughly explains the ins and outs of how the 401(k) plan works--and then fully describes a foolproof formula for maximizing the its potential. Half-time Report - See how George's portfolio did during the first half of 1999.     Our editorial goal is to provide a forum for investment ideas. Our articles, columns, and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Kolias & Co of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.    Privacy Policy | © 1998-2002, Kolias & Co | Liability Disclaimer