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@magnacarta
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1 min read
When I crunched the numbers for 15 years, they were disappointing in more ways than one. Just to exceed USD 1M, this is what I need to do:
| Initial Deposit | 5,000 |
|---|---|
| Contributions | 91 |
| Frequency | Monthly |
| Investment Time Span | 23 Years |
| Estimated Rate of Return | 20.00% |
| Compound Frequency | Monthly |
FUTURE BALANCE | 1,005,503 |
It's a big difference between an initial deposit of 100 and one of 5K. Even with the numbers shown here, I save only 7 years rather than 15 years.
Using your numbers but change years from 30 down to 23 gives you "only" USD 298,786.
It's the extra years which are needed for the math to work its magic.
Whether for 23 years or 15 years, it's possible to reach USD 1M; it's just more difficult with less years.
Lesson to the children out there: to reach USD 1M using only 100 for an initial deposit and a monthly deposit of 50 and monthly compounding over 30 years, start young!!
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