Any tips for me to retire by 60 with $1,000,000 by saving $1,000 each month?

Here's an idea, since Clarence already pointed out the very conservative approach you can do. I wrote this article for this kind of scenario. Take an aggressive approach. Statistically, any portfolio that has a 20 year horizon or above, with Dollar-Cost-Averaging like yours ($1000/mth or $12000 a year) can afford to go 100% equities. You have a couple of options (non-inflation adjusted)

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1) Take riskier, concentrated positions and go for 13% or higher annualized - you'll have about $1mil in less than 20 years. 2) Take a diversified global portfolio option but with 100% equities. With rebalancing that I offer on my end, you could try for a decent 8% net of fees easily. So again, you could get $1mil in about 20 years, letting it roll for 7 more years for considerable less risk. I would recommend this option if you don't have a lot of investment experience.

In any case, you can see from both cases that you can retire well before 60. To cope with inflation, we can turn your lump sum into a variable annuity - meaning that we'll strategically calculate how much money should be withdrawn along with your dividend to match inflation and you'll be dead before the entire sum is used up. We'll also adjust your portfolio as you get older to make this end result more favorable. Go big, since you're already starting so young and investing an amount that's pretty high for your age. For illustration, here's a successful recipient of example number 1 - his capital was $12,000 in December 2018, and it's this much now.

Do feel free to contact me if you'd like help.

https://www.facebook.com/luke.ho.54

Hi Linda,

To get to this $1m in 30years plus with $1,000 seems doable based on some of the math done already for you. A diversified investment portfolio will do 4-6%pa and match that objective perfectively.

I'd focus the answer instead on "what should you do"

And it starts with reframing the approach $1,000/m for next 30years.

• For the next 30years, the journey is not going to be linear. Your income will likely increase at some stage and decrease at some stage.
• For the next 30years there will be major purchases made such as house and major changes such as a child or a sick parent.

Hence, will the $1,000/m to reach $1m become a pure mathematical projection?

What should you do?

1) Save more when you earn more. Spend your effort to upgrade and earn more. And then actively increase your invested amounts

2) Track your progress and plan to hit ahead of time because things happen. A prudent businessman checks his accounts at least every month if not every week.

3) Find out what really motivates you to hit the $1m mark and what you'd do to stay satisfied once you it that. Pin that up onto your cupboard or your desktop.

I've an article that you may find interesting and it's on financial independence. I wish you all the best. https://www.theastuteparent.com/2019/04/financi...

Hi Linda,

Great question! I'm sure there are plenty of fellow Singaporeans with dreams and plans to retire a millionaire or get that pot of gold ASAP. My only tip for you is: be patient & let the art of compounding do the trick for you.

Compounding can take place over these 2 verticals of Personal Finance: Investments & Savings. We've got plenty of Seedly articles breaking compounding down and summarizing the 2 named verticals of Personal Finance. Here are the top few I would recommend you to do a quick read on!

• Compound Interest: A Ridiculously Easy Way to Get Rich
• The Ultimate Guide to Investing in Singapore
• Cheat Sheet: Investment Products at a Glance
• Investment Products That Require Less Than $1,000 for Working Adults to Invest
• Cheatsheet: Best Savings Account for Working Adults

Do sit down with a financial advicer/planner (or DIY it yourself) to sort out your financial goals and plans for the future. Question your risk appetite & how much capital you're willing to fork out.

I hope this helps and all the best! :-)

If you're 25 now, you just need to have your 1k per month compound at 4.6% annually to achieve 1m in 35 years.

You can do this easily with a balanced globally diversified portfolio of funds.

You can set this up with a FA or a Robo Advisor or of course DIY.