If I save $1 a day when will I become a millionaire?
Dear Al: I’ll turn 15 on Dec. 5. If I save just $1 a day every day, when will I be able to retire as a millionaire?
And what’s the best place to put my money so I can retire in the least amount of time? Thanks!
– Millionaire Wannabe in Luling.
Dear Millionaire Wannabe:
If you save $1 dollar per day for 365 days per year and earn 8% on average per year you will be a millionaire, before taxes, in approximately 67.5 years.
The best place to initially invest your money is in an S&P 500 index fund (inexpensive and historical rate of return in excess of 8% per year); however, you may need at least $250 to initially invest.
Through the years as you get older, you may want to diversify into other types of mutual funds and later into bonds.
Students’ questions about finances answered – only in the St. Charles Herald-Guide. Financial expert and school board member-elect Al Suffrin, a certified public accountant, takes on the tough questions from parish kids- and their parents – in an important weekly column everyone should read. Send YOUR questions to: firstname.lastname@example.org or write: MONEYTALK, P.O. Box 1199, Boutte, LA