How much money would I have to save every month to reach 1 million by age 65?

I'm 25, how much would I have to put away every month in a Roth IRA to reach 1 million by age 65?

Public Comments

1. 25,000 a year.
2. Assuming you have $0 saved now, and will save the same amount each month for the next 40 years, assuming the average rate of return of 10% (a little below the stock market average) you will need to save $155.06 per month to have $1M at retirement (65). Try calculators at www.bankrate.com/calc, or just google "savings calculator".
3. We have to make some assumptions to arrive at an answer. You will invest the money in diverse equity investments that will average 10% annual growth. $200 a month should be sufficient at that growth rate to give you more than $1,000,000 at age 65 with just a small safety factor. You want to put that money into a Roth IRA account so that you will not have to pay taxes on the earnings at age 65, which will amount to about $100,000 annually.
4. You can save 2,083.335 dollar monthly, starting today so that at age 65 you'll exactly have 1 million dollar.
5. Get this free report on compounding your return. It all depends on the rate of return. The "law of 72"..might be of interest... at 8% per annum it would take 9 years to double your money. at 12% ................ it would take 6 years. The report is an interesting read:
6. I suggest you go this website: Choose to Save (url below). It has the best estimator for how much you need at retirement. Keep in mind that $1 million in today's dollars will be worth a lot less 35 years from now. So you need to both save -- make continuing contributions -- and invest wisely.
7. Go to Appendix A of my free book at http://www.invest-for-retirement.com to help you answer this question. Also, 1 million dollars in 40 years will only be worth about $300,000 in today's dollars, if inflation is 3 - 3.5% annually. So, to have 1 million of today's dollars at age 65, you will need about 3 to 4 million dollars to get the same purchasing power. You will not be able to acheive this with just a Roth IRA, because of the contribution limits. You can probably get close to a million with a Roth IRA, but to get to 3 to 4 million you will need an additional retirement account. Here is some more help. I recommend using a 7 to 8% annual rate of return for your portfolio (the reasons for this are explained in chapter 22 of my book). http://www.bloomberg.com/invest//calculators/retire.html http://apps.nasd.com/Investor_Information/Calculators/1/RetirementCalc.aspx