CNBC published report Prepared by Jasmine Suknanan in which she explained how to invest your money if you are at the age of 45 to reach the achievement of one million dollars by the age of 65, and the report outlined the amounts to be invested each month to reach this investment goal which can be a very successful way to grow your money.

It may seem daunting at first, the report says, but starting with small steps can make all the difference, and the sooner you get started, the more time your money should grow. The report indicates that there are 3 very important elements in terms of investing your money that you should consider if you want to achieve this goal.

There are 3 critical elements of investment that play an important role in achieving this goal.

These are the amount you contribute each month, the rate of return, and how long you have to reach your goal.

If you take this into account, it can help pave your way to financial independence, no matter what that means to you, even if it means making a million dollars.

3 critical elements of investment play an important role in achieving this goal, and these elements are the amount you contribute each month, the rate of return, and how long you have to reach your goal.

We asked Brian Stevers, a financial advisor and founder of Stevers Financial Services, to help us calculate how much money 40-year-olds could invest each month and make $1 million by age 65. He also compiled the numbers to help us figure out how much people will contribute Invest every month to become millionaires if they only wait 5 years after they reach the age of 40. Here’s what we found:

## How much does a 45-year-old need to invest to become a millionaire?

When doing the math, Estefer calculates 3 different rates of return: 3% (a conservative portfolio of mostly bonds), 6% (a mix of stocks and bonds) and 9% (a portfolio that is stock-heavy or contains index or mutual funds that yield about 9% in average).

He used the retirement age of 65, which would give 45-year-olds just 20 years to save. Here’s how much 45-year-olds will need to invest each month to become millionaires by the traditional retirement age:

Making investments that yield an annual return of 3%, a 45-year-old would have to invest $3,100 a month to reach $1 million by age 65.

If they instead contribute to investments that give an annual return of 6%, they will have to invest $2,200 per month for 20 years until they end up with $1 million.

But if they choose investments that yield an annual return of 9%, which is relatively more aggressive, they will need to invest $1,600 a month for 20 years to reach $1 million.

If you were to start investing for an annual return of 9% just 5 years before the age of 40, you would need to contribute $950 per month to reach $1 million by age 65. This means contributing $650 less per month than you would have to contribute if you waited until age 45.

The earlier you start investing, the less you will contribute to your investments to reach a million dollars, because compound interest is strongest when you have a longer period of time to grow your money.

Choosing investments that achieve an annual return of 9% will make you need to invest $1,600 per month for 20 years to reach $1 million.

Depending on your circumstances, making such strong contributions may seem stressful, especially since as you get older you may incur expenses that you did not have when you were younger, such as raising a child, caring for elderly parents, paying life insurance premiums, or Even paying tuition for kids who are about to go to college.

All of these costs can make it difficult to simultaneously make strong contributions to your investments. However, keep in mind that even making smaller contributions can grow and may have a profound impact on your financial situation over time. Starting with something is more impactful and will put you in a better position than if you weren’t investing at all.

So even if you can’t invest $1600 a month, the sooner you start investing the more compound interest you do because of time the magic will work.

If you are very new to investing, or your income is so fluctuating that you don’t know how much money you can comfortably invest in, you might consider an app like Acorn (Acorns), which allows users to invest the “back-up change” they get from making everyday purchases such as coffee, textbooks, and clothes. In other words, you are investing using the change from the purchases you were going to make anyway.

And if you have some money to invest but can’t afford a full share of the companies you’re interested in, other apps like “Robinhood”)Robinhood) allows you to invest in partial shares, and a partial share is a portion of a share of stock based on how much money you want to invest instead of how many shares you want to buy for less than $1. This way you can still win the game.

But if you’re more comfortable with a laissez-faire approach, some apps – such as Welthfront (Wealthfront) And “Bitermint” (Betterment) – uses automated advisors to help you decide which investments make sense for you; Based on risk tolerance, goals and retirement history.

Automated advisors also automatically rebalance your portfolio as you get closer to your goal date (whether it’s retirement, or buying a home). This way you don’t have to worry about adjusting the customization yourself.

It is also important to note that when investing in stocks you should not just throw your money at random individual stocks; A tried-and-true strategy is to invest in index funds or ETFs that track the stock market as a whole, such as the S&P 500. According to Investopedia, the S&P index has historically returned at a rate of 10 to 11% annually, so you might expect a fund that tracks this index to achieve similar returns, and also note that past returns do not guarantee future success.

## Conclusion

Investing can be a very successful way to grow your money, and it may seem daunting at first, but regardless of your money goals, starting with small steps can make all the difference. But if your goal is really to pave your way to a million dollars, the sooner you get started, the more time your money should grow.

Reference-www.aljazeera.net