Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Bankruptcy Filings Surge as Farmers Battle Inflation and ICE Raids

    July 21, 2025

    Southwest Airlines Updates Baggage Policy—Here’s What You Need to Know

    July 10, 2025

    NASA to Livestream Rocket Launches on Netflix Starting This Summer

    July 3, 2025
    Facebook X (Twitter) Instagram
    Friday, July 25
    X (Twitter) Instagram
    NinepenniesNinepennies
    • Home
    • Featured

      The Highest-Paying Jobs in America—And It’s Not in Finance!

      March 27, 2025

      7 Must-Buy Costco Sale Items Before They’re Gone This February 

      February 10, 2025

      Steel Stocks on the Rise: 3 Winners After Tariff Announcements

      February 4, 2025

      The Best Oil Stocks to Invest $200 in Right Now

      January 28, 2025

      Top 10 Best Jobs of the Year: High Demand, Six-Figure Salaries, and Bright Futures

      January 23, 2025
    • Entrepreneur News

      Southwest Airlines Updates Baggage Policy—Here’s What You Need to Know

      July 10, 2025

      Darden Restaurants Surpasses Earnings Forecasts as Olive Garden’s Parent Company Projects 2026 Growth

      June 25, 2025

      Starbucks Enters Next Phase of Turnaround by Focusing on Employee Engagement

      June 18, 2025

      Walmart Launches New Credit Card Through Its Own Fintech After Ending Capital One Partnership

      June 11, 2025

      Walgreens Store Closures: Full List of Locations Shutting Down This Month

      June 4, 2025
    • Financial Wellness

      Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

      April 24, 2025

      The Minimum Salary Needed to Be in the Upper-Middle Class in 2025

      March 21, 2025

      Should You Buy, Sell, or Hold Amazon in 2025?

      March 7, 2025

      From Hawaii to West Virginia: The Shocking 77-Year Gap in Retirement Savings Longevity

      February 24, 2025

      Are the 3 Highest-Paying Dividend Stocks in the Dow Jones Worth Buying?

      February 17, 2025
    • Popular Now

      European Markets Climb as Trump Moves to Cut Tariffs on Auto Parts

      May 1, 2025

      Robinhood Expands Trading to Include Bitcoin, Oil, and Gold Futures 

      January 30, 2025

      Powerball Winning Numbers for January 18: Oregon Player Takes Home $328.5 Million Jackpot

      January 21, 2025

      Morgan Stanley Surpasses Estimates With Robust Equities and Fixed Income Trading Revenue

      January 20, 2025

      10-Year Treasury Yield Edges Lower Amid Anticipation of Economic Data, Fed Remarks

      November 21, 2024
    • Wealth

      America’s 10 Wealthiest Self-Made Women, According to Forbes— #1 May Surprise You

      February 5, 2025

      8 Wealthiest Royals in History

      February 4, 2025

      One Powerful ETF That Grew $10,000 to $55,000 in a Decade: Is It Worth Buying in 2025?

      January 28, 2025

      Coinbase CEO Predicts Bitcoin Could Hit Multi-Million Dollar Value

      January 24, 2025

      Dogecoin Surged After Elon Musk’s Appointment: What’s Happening With This Popular Meme Coin?

      November 18, 2024
    NinepenniesNinepennies
    Home » Dave Ramsey Affirms That Investing $100 Monthly Can Make You A Millionaire At Retirement If You Start Early
    Editor's Picks

    Dave Ramsey Affirms That Investing $100 Monthly Can Make You A Millionaire At Retirement If You Start Early

    DunniBy DunniApril 11, 20246 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Golden piggy bank
    Source: rawpixel
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Ask the average American adult what their retirement goals are, and many may infer they would love to amass savings upwards of $1 million. 

    Gov. Reeves delivering a speech
    Source: Luxury.Finance.Wealth/Medium

    However, this lingers only in the wildest dreams of most American retirees. Checking the investment accounts of retirees indicates that most of them fall short of the $1 million goal. 

    Bleak Realities for American Retirees 

    In a 2023 report by Benzinga, just a small portion of retirees —roughly 9%— attained the $1 million retirement savings benchmark. 

    Retired union members at a roundtable discussion
    Source: AFL-CIO America’s Unions/Flickr

    The gloomy side of this report is the one that says an alarming fraction of retirees, about 37% of them, don’t have any form of savings. This necessitates a clarion call for young workers to start building a nest egg early enough. 

    A Million Dollar Retirement Fund Is Feasible  

    The same Benzinga report claims that the average American retiree had only $170,727 in savings. 

    Scrabble tiles on a bed of money
    Source: 401(K) 2012/Flickr

    However, in the face of these daunting figures, Ramsey came forward to declare that accumulating a million-dollar retirement fund is not rocket science. The finance adviser affirms that it is way easier than most people think. 

    The Key Is Starting Small and Early 

    Rather than hunting around for major investments at the peak of your career, Ramsey suggests that it is better to start small, as early as possible, and remain consistent. 

    The young shoot of a plant springing from the earth
    Source: findingtheobvious/Flickr

    By setting aside as little as $100 monthly, a young worker can easily amass a seven-figure stash. Ramsey not only keeps us salivating but also proffers detailed tips and practical steps toward achieving this goal. 

    Adjusting the Return Rates for Retirement Projection  

    Ramsey bases his calculation on an annual returns rate of 12 percent. He says an annual savings of $1,200 will yield an account value of $1,176,000 in 40 years. 

    Digital depiction of stock trends
    Source: Invincible Flow Health/Medium

    However, upon setting forth the details of his million-dollar retirement playbook, some analysts have criticized Ramsey’s choices of returns rate. The analysts argue that the average annual return of the S&P index oscillates closer to 10 percent. 

    Become a Millionaire Almost Effortlessly 

    Nonetheless, recalculating Ramsey’s long-term projections at an annual return rate of 10 percent would yield $1,048,247 at the end of 45 years—just an additional five years of work. 

    A picture of a clipboard with millionaire written
    Source: Nick Youngson/Pix4free

    If 40 years is your ideal target, you can still hit the million-dollar mark by saving $159 monthly. 

    Better Late Than Never  

    If you have already spent a sizeable number of years in employment, all hope is not lost. For example, if you are 30, 40 or even 50 years old, that one million retirement mark is still attainable. So far, you are willing to go the extra mile. 

    A bird nest with dollar notes
    Source: American Advisors Group/Flickr

    Here is what that means. You would need to put aside more than the suggested $100. 

    The Advantages of Starting Early are Innumerable    

    Depending on how close you are to retirement, it may become necessary to put away an upward of $150 to make up for the lost time. 

    A kitchen jar with cash savings
    Source: American Advisors Group/Flickr

    However, your investment savings work the hardest when you start early, as early as initiating retirement savings in your 20s. This is all thanks to the power of compound interest. 

    Heard of the Fibonacci Sequence? 

    Even nature takes advantage of compounding, so who are we to jettison it? To get an in-depth understanding of the multipliers effect of compound interest, kindly look up the Fibonacci Sequence. 

    Geometric Representation of Fibonacci sequence progression
    Source: Needpix

    Now, here is a simple explainer of how to go about it if you are starting your retirement savings in later life and are still aiming at the million-dollar mark. 

    Initiating a Retirement Plan at 30 

    If you got a wake-up call to start a retirement savings account at 30, then you are not too late to the party. According to available statistics, you are way better off than most Americans. The amount you would have to put aside per month shouldn’t bite that hard. 

    A young tourist reclining in a chair and taking in nature
    Source: rawpixel

    Retiring at 65 would afford you 35 years of compounding your savings. 

    The Earlier, the Easier 

    However, amassing seven-figure retirement savings in the space of 35 years and at an annual returns rate of 10 percent will require you to set aside upward of $264 per month. 

    Infographics depicting putting dollars in a ballot-like safe
    Source: Needpix

    Now, this depicts how much sacrifice is involved if you put off starting early. The longer you wait, the more grit and discipline are needed to put away retirement savings. 

    Initiating a Retirement Plan at 40

    Kicking off retirement savings at 40 means you have robbed yourself of 10 – 15 years of savings. So, the monthly savings required to attain a million dollars become much more tangible.

    Book+Boat+Halong Bay
    Source: Jonathan Lin/Flickr

    To hit the bullseye, as much as $750 deductions will be needed. You can afford to down the bitter pill of $264, but if your monthly income is good enough, $750 should be easy to breeze through. 

    Initiating a Retirement Plan at 50 

    If you realize that setting up a retirement account is essential at age 50, then the monthly amount to put away becomes much more significant. 

    Figurine of old retirees
    Source: Needpix

    With just 15 years of employment to go before retirement and at an annual return rate of 10 percent, $2,425 should get you across the one million dollar mark by retirement. 

    There’s Nothing Like Too Late, Just Pay the Price

    Putting away $2,425 at 50 would most likely be a walk in the park for many, as this period would coincide with their peak earning years. 

    Piggy bank, calculator, dollar bill, journal, and calculator, all on a desk
    Source: Michael Nighbert/LinkedIn

    Nonetheless, it may also be difficult for folks who have not learned how to delay their gratification. The question such people would ask is: “Why be a miser and wait for 15 years before spending my money?” 

    A Friendly Disclaimer 

    There is no way of predicting the returns on your retirement investment in detail. For example, while the stock market indeed offers a long-term annual return of 10 percent, that figure is not consistent year upon year. 

    Stock Market Data in a Smartphone
    Source: Oleksandr P/Pexels

    In some years, you may get 15%, but it may dip by 20% in another year. So, this is another reason to start early. Compound interest will help taper off the average losses on your investments. The shorter the time, the higher your investment risks. 

    Retirement retirement fund Savings
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleTech CEO, Marc Benioff, Gives $150 Million to Hawaii Hospitals
    Next Article Another Mortgage Rush Begins After A Slight Drop In Rates

    Related Posts

    Editor's Picks

    Bankruptcy Filings Surge as Farmers Battle Inflation and ICE Raids

    July 21, 2025
    Editor's Picks

    NASA to Livestream Rocket Launches on Netflix Starting This Summer

    July 3, 2025
    Financial Wellness

    Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

    April 24, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Stay In Touch
    • Twitter
    • Instagram
    You Might Like

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Our Picks

    Bankruptcy Filings Surge as Farmers Battle Inflation and ICE Raids

    July 21, 2025

    Southwest Airlines Updates Baggage Policy—Here’s What You Need to Know

    July 10, 2025

    NASA to Livestream Rocket Launches on Netflix Starting This Summer

    July 3, 2025
    X (Twitter) Instagram
    • Home
    • Editor’s Picks
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms of Use
    • Editorial Standards
    © 2025 Ninepennies.

    Type above and press Enter to search. Press Esc to cancel.