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Hitting $1 million

Key takeaways

  • Make a plan and set up a savings strategy.
  • Try to minimize taxes and fees and consider investing for growth potential.
  • Automate your plan so you can take advantage of continuous contributing and potential compounding over time. Consistency and patience can help you hit big goals.

There's a well-blazed trail to the million-dollar mark and beyond. Normal people do it every day. It doesn't take entrepreneurial genius, investment wizardry, or wealthy relatives. The secret is that it's not a secret at all. It's mostly about dedication and commitment to your goals.

"Be patient," says Ryan Viktorin, CFP®, vice president and financial consultant at Fidelity's Investor Center in Framingham, Massachusetts. "It can happen over time with a consistent, repeatable process."

"The people I've worked with who reached their goals through saving and investing followed a straightforward path. They made a plan, created a saving strategy, and automated their saving. After that it's a matter of executing the plan and continuing to refine it over the years," she says.

Here's what you should know about making $1 million.

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1. Plan for it to happen

Making $1 million as a saver and investor often starts with a financial plan. A financial plan is simply a strategy for your future money. It can be back-of-the-envelope estimates, or it could be a formal plan created on your own, or with a financial professional.

Only about a third of Americans have a financial plan, a recent survey found. But nearly everyone who has a financial plan (96%) said they feel confident that they will reach their financial goals.1

A financial plan can be like a map showing you how to reach your goals, Viktorin says.

For in-depth help on foundational financial steps like budgeting, emergency savings, and paying off debt, read Viewpoints: 5 small steps that can make a big impact.

2. Set up a savings strategy

Consistently saving what you can over time can be a powerful tool when it comes to building wealth.

  • Establish a habit of paying yourself first, even if it's a few dollars from every paycheck to start, to get the ball rolling. Aim for at least enough to capture the full match from your employer in a workplace retirement plan, if applicable.
  • Prioritize increasing the amount that you're able to save over time. As your income rises through your career, make sure your savings rate keeps up. Fidelity suggests aiming to save 15% of pre-tax income to help keep your lifestyle in retirement—which includes any employer match.
  • Your total savings rate might need to be higher than 15%, depending on your goals and time frame.
  • Save and invest in tax-advantaged accounts when possible. Contributing to accounts that offer a tax deduction like a traditional IRA, a 401(k), or health savings account (HSA) can help lower your tax bill for the year in which the contribution is made. That can help free up some money you may be able to save for the future. Contributing to a Roth account does not confer any tax breaks today, but qualified withdrawals of earnings are tax-free.2 Learn more: Which IRA is right for you?
  • If you don't have access to a workplace savings plan or you've already maxed out your tax-advantaged options, investing in a taxable brokerage account could help you save and invest more for the future. Using tax-efficient investment strategies and products can help keep taxable events in the account to a minimum. Plus, you do have access to the money when you need it. Read Fidelity Wealth Insights: 5 ways to be a tax-smart investor
Graphic charts 2 hypothetical paths to making $1 million. Starting at age 25 and saving 15% of income could help our saver retire at 67 with $2.69 million. The second path starts at age 35, she saves 15% of income and reaches $1.46 million by 67. At that savings rate of 15%, she would need to start no later than age 40 to make $1 million.

Assumptions: Starting salary at age 25: $60,000; at age 35: $69,632. Ending salary: $112,131. Annual contribution of 15% which includes any employer match with a salary growth rate of 1.5% and a hypothetical return of 7%. Contribution of 15% of salary is made at the end of the year. Starting at age 25, the annual contribution was $9,000 a year and it grew to $16,820 by age 67 to match salary increases of 1.5% annually. 


The ending values do not reflect taxes, fees, or inflation. If they did, amounts would be lower. Earnings and pre-tax contributions are subject to taxes when withdrawn. Distributions before age 59½ may also be subject to a 10% penalty. Contribution amounts are subject to IRS and plan limits. Systematic investing does not ensure a profit or guarantee against a loss in a declining market. This example is for illustrative purposes only and does not represent the performance of any security. Consider your current and anticipated investment horizon when making an investment decision, as the illustration may not reflect this. The assumed rate of return used in this example is not guaranteed. Investments that have potential for 7% annual rate of return also come with risk of loss.

3. Invest for growth potential

To reach big, long-term goals, you may need the growth potential of stocks or stock funds. Over time, the growth potential of stocks can help your money keep up with the rate of inflation and (hopefully) beyond. The key is to strike a balance between the level of stock market risk you're comfortable with that also could provide the level of returns you need to meet your goals.

If you need help building your investment mix, Fidelity has a collection of digital tools, educational content, and financial professionals that can help. Read Viewpoints: How to start investing

Graphic shows how $100 would have grown since 1980 in 3 scenarios. By investing in the S&P 500, it could have grown to $13,665 by 2023; $1,756 in the Bloomberg US Aggregate bond index; and $660 in 3-month US Treasury bills.
Strategic Advisers. Hypothetical value of assets held in untaxed portfolios invested in US stocks, bonds, or short-term investments. Actual historical data was used to compute the growth of $100 invested in these portfolios for the period between Jan. 1, 1980, and Dec. 29, 2023. Stocks, bonds, and short-term investments are represented by total returns of the S&P 500 Index, Bloomberg Barclays Aggregate Bond Index, 3-month Treasury Bills. Past performance is no guarantee of future results.

4. Minimize fees

Just like your savings can add up over time, so can the impact of fees. Fortunately, mutual fund fees have come down dramatically over the past 30 years. The average expense ratio for equity mutual funds was 0.42% in 2023.3 Fidelity even offers some mutual funds with zero expense ratios: We're raising the bar on value.

Using exchange-traded funds (ETFs) can be another cost-effective way to diversify your investments. ETFs offer some of the same benefits as mutual funds with a few differences. ETFs tend to have a lower expense ratio than mutual funds—the average equity ETF had an expense ratio of 0.15% in 2023.3

For more on the differences between mutual funds and ETFs, read Viewpoints: Mutual funds vs. ETFs: Which is right for you? and Fidelity Wealth Insights: Are fees holding your portfolio back?

5. Automate: Make your strategy repeatable

Workplace savings plans like 401(k)s benefit from the power of automation. No matter what happens in the market or how you're feeling on a particular day, contributions are taken from your paycheck and invested on a regular basis.

Automation can help when you're saving in other types of accounts as well. By setting up recurring transfers from your bank or cash management account, or setting up direct deposit to an investment account, you can ensure that your savings are happening at a regular cadence.

And that's not all. A couple of cool new features at Fidelity let you automate your investing as well. You can set up recurring investments and purchase fractional shares of stocks and ETFs. Being able to trade fractional shares lets you trade a dollar amount of stocks or ETFs instead of shares.

Graphic shows the balances of people who been continuously contributing to a 401(k) for 5, 10, and 15 years. The overall average for 5-year continuous contributions was close to $300,000. For 10-years, the average was just over $400,000. The average balance for 15 years was $531,200.
Fidelity Investments Q2 2024 401(k) data based on 26,100 corporate defined contribution plans and 24 million participants as of June 30, 2024. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are nonqualified defined contribution plans and plans for Fidelity's own employees. Generations as defined by Pew Research: Baby boomers are individuals born between 1946–1964, Gen X are individuals born between 1965–1980, millennials include individuals born between 1981–1996 and Gen Z includes individuals born between 1997–2012. Past performance is no guarantee of future results.

6. Protect what you have

Knowing when to avoid risk, when and how to manage it, and when to transfer risk can help put safety nets under your plan.

Management could mean taking steps to limit the amount of risk to which you're exposed. Diversification is a way of managing the risk of one company, industry, or sector being hit with bad news. Another strategy could be dollar-cost averaging, to help mitigate the risk of market timing and emotional decisions.

Transferring risk can be done with insurance. Though insurance can be costly, it should protect you against catastrophic losses. It can make sense to review your coverage annually and shop around to make sure you're getting the coverage you need.

Read Viewpoints: 3 strategies to help reduce risk

If it were easy, everyone would do it

It's not always easy to get to a million dollars but it is very attainable, says Viktorin. With planning, wise choices, and persistence, becoming a millionaire (and beyond) could be within reach.

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This information is intended to be educational and is not tailored to the investment needs of any specific investor.

1. "2024 Schwab modern wealth survey shows increasing financial confidence from generation to generation and younger Americans investing at an earlier age," AboutSchwab.com, Charles Schwab, 06/12/2024, https://pressroom.aboutschwab.com/press-releases/press-release/2024/2024-Schwab-Modern-Wealth-Survey-Shows-Increasing-Financial-Confidence-From-Generation-to-Generation-and-Younger-Americans-Investing-at-an-Earlier-Age/default.aspx 2. A distribution from a Roth IRA is tax-free and penalty-free, provided the 5-year aging requirement has been satisfied and one of the following conditions is met: age 59½, disability, qualified first-time home purchase, or death. 3. "Trends in the expenses and fees of funds, 2023;" ICI.org; Investment Company Institute; 03/2024; https://www.ici.org/system/files/2024-03/per30-02.pdf

Diversification does not ensure a profit or guarantee against loss.

Investing involves risk, including risk of loss.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

$0.00 commission applies to online U.S. equity trades and exchange-traded funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (historically from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at Fidelity.com/commissions. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Institutional® are subject to different commission schedules.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.

Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00).

Dollar cost averaging does not assure a profit or protect against a loss in declining markets. For a Periodic Investment Plan strategy to be effective, customers must continue to purchase shares both in market ups and downs.

Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.

Indexes are unmanaged. It is not possible to invest directly in an index.

The S&P 500® Index is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent US equity performance The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-back securities (agency fixed-rate pass-throughs), asset-backed securities and collateralised mortgage-backed securities (agency and non-agency).

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