Save A Million Dollars Calculator

Definitions

• Your age: Your current age in years.
• Millionaire target age: The age you want to become a millionaire. For example, to find out what it could take to be a millionaire by age 40, enter 40 here.
• Amount currently invested: Total value of all of your current investments. Although you could include your home and personal property in this amount - it is a bit more accurate to include only your savings, retirement accounts and investments.
• Savings per month: The amount you will contribute each month to your investments. This calculator assumes that all savings are added to your account at the beginning of the month.
• Rate of Return on investment: This is the rate of return you expect from your investments. The historical average stock market return, as measured by the S&P 500, generally hovers around 10 percent annually before adjusting for inflation, and about 6 to 7 percent when adjusted for inflation.
  
  The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2016, had an annual compounded rate of return of 6.6%, including reinvestment of dividends. From January 1, 1970 to December 31st 2016, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.3% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.
  
  These calculations are hypothetical. Investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.

• Expected inflation rate: This is what you expect for the average long-term inflation rate. The Consumer Price Index (CPI) has a long-term average of 3.22%. This figure represents the average annual inflation rate over several decades, providing a broader view of how prices have generally increased over time in the country.