How To Retire With One Million Dollars

By | April 9, 2015

How To Retire With One Million Dollars

Can You Retire With A Million Dollars?

This is a question I’ve been asked a number of times in the last few years.

If you are a normal person working a normal type job you can do it but you are going to need a plan. In this article I will show you how to retire with one million dollars.

If you are young the best thing you can do is to start on the road to accumulating one million dollars now. Here are a few examples of what it’s going to take to have one million dollars when you get to 65 years old.

Retire With One Million Dollars

The Systematic Retirement Plan:

20 Year Old – assuming a 6% return you would need to save $380 per month in order to retire at 65 with one million dollars.

30 Year Old – assuming a 6% return you would need to save $725 per month in order to retire at 65 with one million dollars.

40 Year Old – assuming a 6% return you would need to save $1,475 per month in order to retire at 65 with one million dollars.

These examples do not take into account money that you have already saved before you start the plan. They also do not take into account inflation.

If you would like to play with some numbers based on your actual age go too They have an easy to use calculator which will help you refine the numbers for your personal situation.

Understand that in order to reach these goals you are going to have to consistently save more than you make. Frugal living now will set you up to have a much less stressful retirement.

Can You Retire With One Million Dollars

Investing The Money That You Save

The money that you are saving obviously has to be invested.

You could consistently put the money in three or four very low expense index funds.

As an example you might put forty percent in a broad based U.S. large cap stock fund, forty percent in a diversified large cap international fund, and the other twenty percent in a small or mid cap world fund.

The stock market has averaged around seven percent real returns over the last half century and hopefully will average seven percent over the next half century but of course there are no guarantees.

Another option for investing the money is in real estate. I recently wrote another article titled “How To Make Money In Real Estate.” You can go to read it here.

Retire With A Million Dollars


Is One Million Dollars Enough To Retire?

I am sure that you agree with me that the “Systematic Retirement Plan” outlined above will go a long way to enabling you to retire with one million dollars.

The next big question:

Is One Million Dollars Sufficient To Retire?

Obviously this question depends on the individual and his lifestyle but in general it probably is enough.

In the last century many people worked the same job their entire life, had their health care taken care of, and retired with a pension.

Things are different today. I am a great example. I have never worked what would be considered to be a normal job and therefore I have no pension.

When I retire I will be counting on social security and my savings to last for the rest of my life which will probably beĀ  much longer than people who retired 50 years ago.

Also like myself a lot of people are having their kids later in life. Costs such as university and medical expenses for their children are coming up much later in life which is an added financial burden.

If you are retiring soon and you have saved one million dollars you are probably in good shape as long as you are fiscally responsible and live frugally.

The biggest problem in today’s world is interest rates are so low that it is hard to get a decent return on your money without taking risks.

For people that have many years until retirement one million dollars may not be enough. Although inflation is low it still eats away at your buying power. In twenty or thirty years one million dollars will buy a lot less than it does today.



You do have the ability to retire with one million dollars. You need to start early, be disciplined, and stay with The Systematic Retirement Plan I have outlined above. Use the calculator at and create a detailed plan that works for you.

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Here are a couple other posts you may be interested in.

How To Save Money On Amazon

Free Frugal Living Tips

Scott The Frugal Man

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