Can You Retire a Millionaire by Investing Just $10 a Day? The Answer Is Yes--Here's the Math.
Key Takeaways
Becoming a millionaire retiree isn't out of the question for many Americans.
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4 min read
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investment
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July 25, 2025
04:44 AM
The Motley Fool
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Interestingly, Bably one of the biggest myths is that you need a lot of money to make money
Sure, having a hefty amount upfront would be nice
However, it isn't absolutely necessary
What the re reveals is re are two key prerequisites to building a fortune without having a ton of money
Second, you must be disciplined
Can you even retire a millionaire by just $10 per day
The answer is "yes (which is quite significant)
However, " Image source: Getty Images
However, Here's the math If you invest $10 per day every day of the year, the total would be $3,650 (with a little more in leap years)
On the other hand, However, let's assume you take weekends off and only invest on weekdays
Let's also factor in 10 holidays during the year
Nevertheless, That gives us 250 days of $10 per day for a total of $2,500 per year
Now the important question: How should you invest the money
On the other hand, On the other hand, Warren Buffett stipulated in his will that 90% of the cash his family inherits should be invested in low-cost S&P 500 (^GSPC 0. 40%) index funds
He specifically suggested Vanguard's, considering recent developments
However, Let's suppose you Buffett's apach and regularly buy s of the Vanguard S&P 500 ETF (VOO 0, amid market uncertainty
Moreover, This exchange-traded fund (ETF) attempts to track the performance of the S&P 500 (remarkable data)
Over the long run, the S&P 500 has dered an average total annual return (including reinvested dividends) of around 10% (which is quite significant)
How long would it take to build a nest egg of $1 million
If we plug $2,500 per year and a rate of return of 10% into a financial calculator, it will tell us that roughly 38 years of would be required (which is quite significant)
A person who plans to retire at his or her Social Security full retirement age of 67 would need to begin $10 per day at age 29
However, On the other hand, A few caveats Is it really that simple to become a millionaire, in this volatile climate
In contrast, Yes and no
Our calculation didn't factor in the impact of taxes
You could avoid the tax issue, though, by making contributions to a tax-advantaged retirement account such as an IRA or 401(k) plan, in this volatile climate
On the other hand, You might wonder if $10 per day in the Vanguard S&P 500 ETF is even possible
After all, the ETF currently trades at more than $580 per
You could simply up enough money to buy one (quite telling)
Alternatively, many online brokerages allow buying fractional s of stocks and ETFs
Importantly, we're assuming that you resist the temptation to try to time the market
Regularly is a critical key to success
Meanwhile, You also can't withdraw money along the way, even if your retirement account makes it relatively easy for you to do so
Finally, there's one issue that's more difficult to work around: inflation, given the current landscape
Moreover, Unfortunately, the corrosive effects of inflation mean that $1 million 38 years from now won't be worth the same as $1 million today
Nevertheless, The S&P 500's inflation-adjusted total return over the long term has been around 6, in today's market environment. $10 per day for 250 days each year with that return would take roughly 50 years to grow to $1 million in inflation-adjusted dollars, amid market uncertainty
At the same time, What if you don't have 38 years before you retire
Some readers won't have 38 years until they retire
How can you become a millionaire retiree if you're in the group
Nevertheless, You can invest more than $10 per day, try to get a higher return than the S&P 500 has historically generated, or both
On the other hand, At the same time, If you have 20 years until you retire, you'll need to invest around $16,000 each year ($64 per day) to build $1 million, assuming a 10% return
If you only have 10 years, that amount will need to increase significantly to almost $57,500 ($230 per day), in this volatile climate
This underscores the importance of having time on your side
Furthermore, Furthermore, However, obtaining a higher rate of return can work wonders
The Vanguard Russell 1000 Growth ETF (VONG 0, in light of current trends
On the other hand, 43%) has dered an average annual return of 16. 79% since its inception in 2010, given the current landscape
If the ETF dered this same average return going forward (a big if, by the way), you could still invest $10 per day and be a millionaire in less than 27 years.
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