Here's exactly when you'll become a millionaire if you save $1,000 per month

Mike Stobe | Stringer | Getty Images

If you start saving $500 a month today, you could become a millionaire as early as 2046. But what if you'd rather reach that seven-figure milestone sooner? We used CNN Money's helpful millionaire calculator to estimate when you'll become a millionaire if you're able to contribute $1,000 to an investment account each month, assuming that you're starting from scratch with zero savings.



With a four percent rate of return, you'll become a millionaire in 37 years, by 2054. With a six percent rate of return, you'll become a millionaire in 30 years, by 2047. With an eight percent rate of return, you'll become a millionaire in 25 years, by 2042. With a 10 percent rate of return, you'll become a millionaire in 22 years, by 2039. Want to get rich sooner? If you can hack it, putting away $2,200 per month will make you a millionaire in 20 years, and $6,000 per month will get you there in 10. Try out the calculator yourself here.

 

If you start saving $500 a month today, you could become a millionaire as early as 2046. But what if you'd rather reach that seven-figure milestone sooner? We used CNN Money's helpful millionaire calculator to estimate when you'll become a millionaire if you're able to contribute $1,000 to an investment account each month, assuming that you're starting from scratch with zero savings. Customers pick up their orders from Shake Shack. Simple money habits that will help you build wealth in 2017 With a four percent rate of return, you'll become a millionaire in 37 years, by 2054. With a six percent rate of return, you'll become a millionaire in 30 years, by 2047. With an eight percent rate of return, you'll become a millionaire in 25 years, by 2042. With a 10 percent rate of return, you'll become a millionaire in 22 years, by 2039. Want to get rich sooner? If you can hack it, putting away $2,200 per month will make you a millionaire in 20 years, and $6,000 per month will get you there in 10. Try out the calculator yourself here. This mindset is what separates the middle class from the millionaire class This mindset is what separates the middle class from the millionaire class These differences speak to the power of compound interest, in which any interest earned accrues interest on itself, and a little money invested now can end up being more than a lot of money invested later. In short: If you want to become a millionaire, the earlier you start investing, the better. This calculation doesn't account for the many variables that can affect your wealth over several decades, including windfalls, emergencies and rises or dips in the market. But it can give you a good idea as to whether or not you're saving enough to retire comfortably.

 

Of course, saving hundreds or thousands a month is an ambitious goal. Even $2,100 a year is more than most Americans can manage. But getting into the habit of saving any amount will be great for you in the long run, and if this inspires you to get started, the simplest way is to invest in your employer's 401(k) plan, a tax-advantaged retirement savings account. Next, consider alternate retirement savings accounts, such as a Roth IRA, traditional IRA and/or a health savings account. You can also research low-cost index funds, which Warren Buffett recommends, and online investment platforms known as robo-advisors.

By Emmie Matins

Source: https://goo.gl/HQNHaR

Bank of America Begins Its Next Powerful Move Higher

Bank of America is one of the top performing stocks in Tuesday's powerful move in the financial sector.

A Bank of America branch

Bank of America  (BAC) is breaking out of a 10-week consolidation Tuesday. The stock is up just shy of 3% and is beginning to put some distance on a very heavy resistance zone near $23.50. As Bank of America builds on Tuesday's momentum, a major support zone is being left behind. With a base this solid underneath, the stock is set up well for more upside.

Bank of America first reached the $23.50 area back in early December as the initial phase of the post-election rally began to run out of steam. After surging more than 35% from its Nov. 8 low, the stock was in need of a healthy rest. Over the last 10 weeks, that's exactly what Bank of America got. The stock moved sideways during this phase while its extremely overbought MACD (moving average convergence/divergence) indicator returned to neutral. Another positive was Bank of America's ability to maintain its string of higher monthly lows. As we enter mid February, the stock is tracing out its 8th straight one. Certainly a very bullish set up, and a strong indication of more upside ahead.

In the near term, Bank of America investors should take on a more positive view of the pattern. The stock now has a major support zone developing that runs from the $24.00 to $23.00 area. It would take a close back below the $22.40 area to derail Tuesday's breakout. On the upside, Bank of America has plenty of room to run. A fresh rally leg could carry shares all the way up to the $26.50 area without running into significant resistance. This key level marks the stock's 10-month moving average. Bank of America has been trading below this long-term indicator since October of 2008. It would take another 10% of upside from current levels for this area to be reached. Profit taking here, at least partial, would be wise.

Click here to see enlarged chart in a new window.

READ MORE: United Technologies Is Poised for a Breakout

By Gary Morrow

Source: https://www.thestreet.com/story/14002007/1/bank-of-america-begins-fresh-rally-leg.html

The Simple Way To Grow A Small Investment Into A Second Income

It is one of the great investing secrets...

It doesn't get much attention, partly because it doesn't have a catchy name, but it's the key factor that helps the rich get richer.

If you're not using it, to put it simply, it's going to be extremely challenging for you to earn lasting wealth. You'll have to worry about things like timing the market, finding the areas that are "hot," trying to "beat the crowd"... and generally playing the market as if it were a lottery, which is typically a loser's game.
I'm talking about compounding your dividends.

I know, I know... it's not the sexiest thing to talk about. And it's definitely not what most investors want to hear.

But rather than send you off chasing the latest fad in the market, we believe in telling our readers the truth about what it takes to be successful in the stock market over the long haul.

The truth is that dividend payments generated by a modest investment might seem inconsequential at first, but through the magic of compounding, it won't take long before they can begin to make a dramatic impact.

You see, when you buy shares of dividend-paying stocks, the dividends they pay can be used to purchase more shares, leading to increasingly larger dividend checks. These larger checks can then be used to buy even more shares and so on. In time, even a small stake in such stocks can grow into a tidy sum.

Let me show you just how powerful dividend compounding can be.

Let's say you buy 1,000 shares of XYZ Corp for $10 each -- that's $10,000 invested. If XYZ pays a 5% dividend yield, you would expect to receive $500 in dividends in the first year.

Now, rather than simply pocketing that $500, imagine if you purchased 50 more shares instead.

Of course, those 50 new shares would then generate dividend payments of their own.

So if you reinvested your dividends and left your investment alone for the second year, your 1,050 shares would generate a little more than the first year -- $525 in dividends.

If you reinvested those dividends to buy 52 more shares for the third year, your 1,102 shares (1,000 + 50 + 52 = 1,102) would pay you even more -- $551 in dividends.

Fast forward through 30 years of dividend reinvestment and your original 1,000 share stake in XYZ would have more than quadrupled to 4,322 shares.

Of course, that's a simplistic example. You would hope your shares would gain value over time rather than just stay at $10 per share.

So to complete this example, let's say XYZ's stock price gains 8% per year since your original $10,000 investment and you reinvested your dividends every year. How much would you make?

As the chart below shows, this steady compounding process can yield amazing results over the long haul.

As you can see, your original $10,000 investment would have swelled to more than $391,000, without ever adding another penny!

But what would have happened if you didn't reinvest dividends? The stock would still be worth about 10 times more than what you paid, thanks to capital gains. But without any reinvestment you would have only collected a measly $15,000 in dividends and you'd be left with the same 1,000 shares.

Granted, this is just an example, but the results are clear. Successful investing for the long haul is really nothing more than a game of compounding by earning a consistent return and reinvesting your profits back in the market over and over again. There are no shortcuts.

But here's the fun part... When your portfolio is large enough, you can stop reinvesting and live off the dividends as a second income.

It's worth pointing out that at the end of the 30-year period, the $391,000 portfolio would be generating annual dividend payments of roughly $19,550 (5% dividend yield X $391,000 = $19,550). In other words, your annual dividend income alone would amount to nearly twice your initial $10,000 investment.

Compounding gives you more time to enjoy life. You don't have to be glued to CNBC or your computer screen, looking for the next "hot" stock. And you don't have to worry about what's going on in China or Russia -- your portfolio remains largely unaffected.

The magic of compounding is most powerful when an investor focuses on established companies that throw off a steady stream of dividends. Simply find dependable companies that pay steadily rising dividends, reinvest your payments, and let the math take care of the rest.

By Nathan Slaughter

Source:http://globaldividends.com/newsletter.asp?d=10477