Tips for Becoming a Millionaire
- Create a clear budget and remove unnecessary expenses.
- Consider paying off debts faster with extra payments each month.
- Work with an investment professional to strengthen your portfolio.
- Increase your income, save more, and invest early.
When Will You Become a Millionaire?
Are you serious about turning your savings into a million dollars or more? You may be surprised at how easy it can be to reach that million-dollar mark. Thanks to compound interest and a smart savings strategy, you can become a millionaire by the time you retire or even earlier!
The TDECU Millionaire Savings Calculator will help you see how long it can take for your savings to turn into your first million.1 Just input your starting point, how much you are investing per month, your investment return, and the expected inflation rate. Our handy calculator will estimate when you will become a millionaire based on your current savings plan. You will also receive tips on how to best invest and save your money to get there even faster.
Ready to get on the path to millionaire status?
Millionaire Savings Calculator Key Terms
Your Federal Tax RateFederal tax rates are a progressive tax system where incomes are taxed at different rates as income increases. Tax rate can be anywhere from 10% up to 37% for taxable income over $539,000 for individuals.
Annual Rate of ReturnA large portion of retirement funds is held in stocks. These figures estimate how much is expected in return annually from investments before retirement. The average rate of return for the S&P 500 averages 6.6%, while financial institutions like TDECU may pay up to 0.99% with no risk compared to a higher-risk stock market return.
Your State Tax RateTexas is one of nine states that does not have a state income tax. Other states have income taxes between 0.33 and 13.3%.
Inflation RateInflation is the decline of purchasing power over time. $1 now is worth less than $1 in the future. Inflation may not have a significant impact in the short term, but inflation has an effect in longer periods such as between now and the age of retirement. Inflation can range anywhere from less than 0 to a double-digit percentage while mostly hovering between 2% and 4%.
1Our financial calculators are provided as a free service to our Members. The information these calculators supply is from various sources based on calculations we believe to be reliable (but are not guaranteed, explicit, or implied) regarding their accuracy or applicability to your specific circumstances. All examples are hypothetical and illustrative and do not intend to provide investment advice. TDECU does not accept any liability for loss or damage whatsoever, which may be attributable to the reliance on and use of the calculators. Use of any calculator constitutes acceptance of the terms of this agreement. TDECU recommends finding a qualified professional for advice about your personal finance issues.