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of time as it does in many cases work against us we make time our ally in regards to building huge levels of wealth.

The amazing but sad thing is that most people with enough time to get this plan going probably cant get their hands on this kind of money.

In order for most 26-year-olds to save $20,500 in a single year, they'd either need live without paying rent while having a pretty good job or several steams of income(not as difficult today as it once was). paying job. They would also need to reduce their food budget to minuscule levels.

If you are way over 26 there is still something to smile about com-poundings power isnot really interested if you save that sum all at once or spread it out. Simply remember save as much as you can and allow it to compound for as long as possible.

If You're Past 26 ...

That power time is a real ally of the youngster investing but as mentioned there is still hope for older people. In fact, even if you're around 50 and haven't yet saved a dime for your retirement, it's still possible for you to retire with $1 million at the reasonable age of 67.

This table shows how much more effort it takes to become a millionaire when you wait longer to start saving:

Starting Age First Year's Contribution Grows to ... Consecutive Contribution Years to Reach $1 Million
26 $1,020,596 1
32 $576,100 2
36 $393,484 3
39 $295,630 4
41 $244,323 5
42 $222,111 6
44 $183,563 7
45 $166,876 8
47 $137,914 9
48 $125,376 10
49 $113,978 11
50 $133,943 12
51 $121,767 15
52 $110,697 DNF*
These calculations assume you max out your contributions every year - including catch-ups for ages 50 and up. Does not include any employer contributions. *DNF: Does not finish with $1 million or more by age 67.

The older you get, the clearer the picture becomes: You cannot retire a millionaire from one year's savings. You'll need to be disciplined and consistent about saving, taxes, and investing.

You Can Still Get There

If you can save the cash and have the time to let compounding work, you can reach these returns. Every number in this article assumes you simply match the stock market's 10% historical annualized returns. There's no guarantee of that happening, of course. But if history is a worthy guide for the future, an easy way to match those returns is with an S&P 500-tracking index mutual fund.

The Vanguard 500 Index (VFINX), Fidelity Spartan 500 (FSMKX), or SPDRs (SPY) exchange-traded fund are three vehicles that have low costs and broad diversification.

Use Everything You've Got

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