# im 25 if i get my masters degree and save \$2000 a month and put 100k in investments will i have \$2.5m by age?

60 i appreciate u giving me a straight forward answer because people that dont even go to college end up saving 1.2m in there lifetime

Update:

and what if im reciving 4% interest annually

Relevance
• John W
Lv 7
9 years ago

If we assume a geometric mean of 4% return on investments then the monthly appreciation in the form of 1 + rate / 100 would be given by R = 1.04^( 1 / 12 ) and what you would have after 35 years which is 420 months would be:

FV = \$100,000 * R^420 + ( \$2,000 * R^419 + \$2,000 * R^418 + \$2,000 * R^417 + ... + \$2,000 * R^0 )

The part in the parenthesis is a summation of a finite geometric sequence which you learned in junior high and using your junior high level math you have:

FV = \$100,000 * R^420 + \$2,000 * ( 1 - R^420 ) / ( 1 - R )

Plug in R = 1.04^( 1 /12 ) and you have:

FV = \$2,194,439.79

Of course, that would mean investing \$100,000 right now and then \$2,000 at the end of each month. Also this doesn't take into consideration taxes. With 15% long term capital gains taxes and dividend taxes, if you do nothing to minimize your taxes, you would have \$1,915,530.61

• Anonymous
9 years ago

If you do save \$2000 a month It is quite possible to have 2.5 million at age 60. You will need to invest it so that you earn a return of just a tad less than 6% during your 35 years until age 60. That is quite doable. There is only one really significant catch. That is inflation. In 35 years your 2.5 million might not be worth all that much almost assuredly less than one million in today's dollars and quite possibly significantly less than one million.

• 9 years ago

No, unless your investments have a lot of returns.

60 - 25 = 35 years

35 years x 12 months/year = 420 months

420 months x 2000 = 840, 000

so it depends.

• Anonymous
9 years ago

You have enough time to grow your money best way to invest in mutual fund SIP you get your target.