The Truth About “Halfway to $1 Million” (It’s Not What You Think)
Answer
Ask me anything about this video:
What annual rate of return is used in the example calculations for reaching $1 million?
Answer
An 8% annual rate of return is used in the example calculations for reaching $1 million.
How long does it take to reach $1 million if one saves $833.33 per month with an 8% annual rate of return?
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It takes approximately 13.8 years to reach $250,000, which is considered halfway to $1 million in this context, when saving $833.33 per month with an 8% annual rate of return. The video implies that reaching the full $1 million would then take another 13.8 years, for a total of 27.6 years.
What is the "halfway" point to $1 million if an individual saves $500 per month with an 8% annual rate of return?
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If an individual saves $500 per month with an 8% annual rate of return, the halfway point to $1 million occurs when their portfolio reaches approximately $29,000. At this point, they have covered half the time it takes to make it to $1 million.