If you and your spouse are working professionals making median salaries, it’s not hard for both of you to accumulate $1 million before you reach 45 years old.
Suppose both of you started working at age 25, and always save and invest one-third of your income. If your savings and investments earn just a 3% rate of return a year, you would have accumulated half a million dollars by age 37 and a full million bucks by age 45.
And this is just for median-salaried professionals.
Let’s look at another hypothetical couple who are median-salaried managers. Let’s assume they save more, say 40% of their income. Further assume that they are able to generate a 5% rate of return.
This couple’s savings and investments will hit $1 million before they turn 39. And $2 million by age 46.
When did your savings and investments reach $1 million?
Don’t have a million dollars? Don’t worry. You probably have that upmarket condo, BMW and Birkin bag that you can be proud of. 🙂