million




How To Become a Millionaire – Learn How Much you Need to Save.




It’s easy.
1. 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.

2. You can’t save $200 a month? Well, that is what it takes. 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.

3. This may not 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.

4. 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.

5. 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.

6. 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.

7. 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!

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