Start on your first $1 million at age 16

Scott Burns over MSN Money has written an article on how to save your first million dollars at the age of 16. Is it a magical formula? Not really – It is another good example of power of saving and compound investment.

… If your money is invested in common stocks and you achieve the average compound annual rate on large-capitalization U.S. stocks, 10.7%, your account will grow to $9,378 at the end of the fourth year. You will be 20 years old. Invested in the same way, with no additional savings, the account will grow to:

* $25,917 by the time you are 30
* $71,625 by the time you are 40
* $197,943 by the time you are 50
* $547,037 by the time you are 60
* And $1,114,423 by the time you are 67

And you will have started and finished all of your saving before turning age 21…

Start on your first $1 million at age 16 – [MSN Money]