Ordinary People, Extraordinary Wealth!

The Surprise Millionaires

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Today’s Surprise Millionaire typifies the very meaning of our saying, “ordinary people, extraordinary wealth”.  A woman who inherited a tidy sum but refused to let it change her lifestyle.  On the contrary, through saving and frugality that “tidy sum” eventually grew into a  wonderful legacy for her community.

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KREM2 NEWS SPOKANE, Wash. – Helen Stowell lived a simple life in West Central Spokane.

“Very simple. She was modest, unassuming. She drove an old Subaru. She gardened, pulled weeds. She walked the neighborhood with her neighbors,” said neighbor Linda Hawkins. “I’ve known her for 20 years. We used to exchange vegetables. She had her tomatoes and I had my squash.”

Stowell’s family first came to the Inland Northwest before the turn of the 20th century. Her grandfather opened a successful drugstore on Sprague Avenue.

Stowell did not know it, but her grandfather’s success would eventually supply her…

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How Long Would It Take to Be A Millionaire


How long would it take you to becoming a millionaire?  Well, I used an investment calculator to determine at what age you would become a millionaire if you invested different amounts, from $200 per month to $1000 per month, starting at age 20.  Here’s the results:

Monthly Savings 10% Return 15% Return
$200.00 59 49
$500.00 50 43
$750.00 46 40
$1,000.00 43 38

So if you put $200 per month away ($2400 per year) into stocks and saw another period like the 1980’s and 1990’s, you would become a millionaire somewhere in your early 50’s.  If you put away $1,000 per month, or $12,000 per year, you would become a millionaire at age 43 even if you just got modest, average returns from the markets.  If you could get a 15% return, you’d be there are age 38, just 18 years later.

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Note that $12,000 per year for 18 years is $216,000, which is what you could easily pay at a private, four-year college.  If you then left the money invested, and were able to earn 12% annualized, you would have a cool $12M at retirement with no effort on your part.  On the other hand, if you earned $200,000 per year at a job because you went to an elite college from age 20 to age 65, you would earn only $9M over your working lifetime.  Just saying….

Be sure to check out this month’s book, The Bogleheads’ Guide to Investing.  

Have a question?  Please leave it in a comment.  Follow me on Twitter to get news about new articles and find out what I’m investing in. @SmallIvy_SI

Disclaimer: This blog is not meant to give financial planning or tax advice.  It gives general information on investment strategy, picking stocks, and generally managing money to build wealth. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. Tax advice should be sought from a CPA.  All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.

Working on Cash Flow your Way to Wealth

Thanks to the regular readers of The Small Investor.  I wanted to apologize for not posting more regularly, but I’m deep into editing the new book, Cash Flow your Way to Wealth.  I’m hoping to finish editing in December and have it ready to help those of your out there who make it a New Year’s resolution to take control of your finances next year.

Here’s hoping that everyone is enjoying a great holiday season!

Barrel Christmas Tree

The  Christmas “Tree” made from Whiskey Barrels at Jack Daniel’s Distillery, Lynchburg, TN