Want to retire with £1 million? This is what I think you need to save each month

first_imgWant to retire with £1 million? This is what I think you need to save each month Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” What would you do with a million pounds? It’s a great conversation starter and daily reverie for many British citizens. But the reality of ever having a £1m to spend seems so far-fetched for most of us, that makes it a bittersweet pastime.What many people don’t realise though, is that it’s not actually as unattainable as we’re led to believe. If you start young enough, a regular and disciplined approach to investing can reap incredible financial rewards. Attaining millionaire status may be possible after all.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Disciplined approachIf you put £250 a month into an index tracker fund with an average 8% annual return, you could achieve £1m in just under 42 years. By increasing that monthly sum to £350, you would hit the £1m mark in 38 years.For those with a larger disposable income, it’s easier. £750 a month would take just 29 years and higher amounts than that would short the time still more.If you can start with a lump sum, this also brings the end goal nearer. A £20k starting pot, topped up with £500 per month would take 31 years.Average returnsThese estimates are all based on an average annual interest rate of 8%. Tracker funds vary in their percentage return, as do stocks and shares.The FTSE 100 has returned an average of 7% over the past decade and the FTSE 250 has returned 11%. These reasonable yields show that despite good and bad years, a decent return is possible.If you are confident and have the time to manage individual stocks in an ISA or SIPP, then you could achieve higher returns more quickly, once you factor-in compound dividend returns.Despite negative news headlines and economic uncertainty around the world, I think the stock market will survive. The FTSE 100 has actually risen over 35% since 2010 and over 632% since it began.Can you become a millionaire?As you can see, if you want to retire with £1m, then the amount you need to save each month varies. Factors to consider are the interest rate return on your investments, how long a timeframe you’ve set yourself and what you can afford.Perhaps you could become a millionaire and retire early with a Stocks and Shares ISA. Don’t rule it out, because even £100 a month at that average FTSE 250 annual return of 11% could achieve a million-pound pot in 42 years.Warren Buffett, one of the world’s most successful investors has achieved millionaire status many, many times over. He advocates a buy-and-hold investment strategy, which takes full advantage of the rising indices and pays little heed to the intermittent fluctuations caused by global economic trials.You’d do well to follow his lead, but you need to engage discipline and not let fear or greed get the better of you. I realise that’s easier said than done for many of us, but that’s why index funds can be a great way to get in on the action. It may sound boring but can prove very lucrative.  Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address See all posts by Kirsteen Mackaycenter_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shares Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. 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