Millionaire at 65: That's how much you have to save for it
Created: 11/28/2022, 3:32 p.m
By: Patricia Huber
Most people want to have a lot of money on the high edge in old age.
However, to achieve this, you should start early.
© IMAGO/Fotostand/K.
Smith
Being a millionaire at the age of 65: According to the US financial author David Bach, it's not that difficult.
He calculated how to achieve this goal.
Munich – One million euros in the account.
For most, this sounds like a dream that could only be achieved by winning the lottery.
But it's not supposed to be that hard.
At least if you want to believe the US financial author David Bach.
He thinks you just have to start saving as early as possible.
Important, however: His calculations are based on the US market.
In Germany it's not that easy.
In this country, the return is usually significantly lower than assumed in Bach's calculations.
Millionaire at 65: Start as early as possible
In his book, Smart Couples Finish Rich, he writes, "You don't have to have money to make money.
You just have to make the right decisions – and act accordingly.” But what are the right decisions?
Bach also provides a table that is supposed to show how much money you have to set aside to be a millionaire by the age of 65.
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Saving despite inflation: even a little money can make a big difference later
The table clearly shows that the earlier you start putting money away, the easier it becomes.
But one must also consider the assumptions that Bach incorporated into his calculations.
According to
Business Insider
, he expects a high annual return of twelve percent.
For comparison: In Germany, the annual return in the Dax is around eight percent on a long-term average.
In addition, for the sake of simplicity, taxes have not been taken into account.
If it is currently possible in view of the high inflation, consumers should therefore make sure that they put a little money aside every month.
Bach advises doing without the little things.
Because even the few euros that you spend in the morning for coffee to go could be worth significantly more in a few years.
(ph)
