HOW to EASILY make your first MILLION

[uscitizen]

400 a month in a savings account that earns less than 2% ain't now way no how going to equal a million in 20 years

In fact 400 a month at 2% will only amount to about 120,000 in 20 years.

If you're not saving 20% or more of your gross income towards retirement and getting a decent return, you're doomed.

Ahh yes 401K's....

 

[Skull Pilot]

400 a month in a savings account that earns less than 2% ain't now way no how going to equal a million in 20 years

In fact 400 a month at 2% will only amount to about 120,000 in 20 years.

If you're not saving 20% or more of your gross income towards retirement and getting a decent return, you're doomed.

Ahh yes 401K's....

only people who don't know what they're doing fear the market.

And a 401K is not necessarily the be all end all of retirement savings.

The tax deferral that a 401K provides is not that big of a benefit. In fact all the taxes that are deferred during your working years will be recouped by the government in the first couple years of retirement. And then you will be subject to annual minimum required withdrawal or else face stiff penalties.

So you will be forced to take out money even if you don't need the income because the government has to get its tax revenue doesn't it?

If you have a 401K offered to you, only deposit enough to max out any employer match, then open a Roth IRA and max that out. Save all other money for retirement in a diversified portfolio with after tax dollars.

you won't be subject to minimum required withdrawals or tax penalties and all you'll have to pay is long term capital gains taxes on the money you actually need.

 

[uscitizen]

Yep tax deferred can suck. Imagine what taxes are going to be to survive our national debt?

Why I always preferred to pay tax as I go.

 

[rightwinger]

Speaking of rags- And I apologize because this is an uncommon thing to do anymore, but a great way to save money for women and for any families with teenage girls, is to get back on the literal "rag", rather than using commercially available disposable feminine hygiene products, and disinfect and wash them similar to the way baby diapers are stored and washed.. Keep a small bucket of water miixed with borax in the bathroom, and when the week is over, take some rubber gloves and fish the home made feminine hygiene towels out. Then you wash and dry, being sure to use bleach in the washer. The dryer portion is hot enough to sanitize the pads for reuse. Just sanitize your hands in between opening the dryer and touching the pads themselves. Then put them in a small sized (and new) garbage bag and leave them under the sink for next month. You can sew them and use cutesy material if you want.. It is an option for while you are at home, or at night or something- and can save you anywhere between 10 and 120 dollars a year, per person.
I realize that this is dated, and maybe seems a little gross, but doing this is also very environmentally friendly, and those dollars really do add up, in the long run.

Do you really want to be a millionaire that much?