Invested moderately conservatively, how long would it take to make a million from $400,000?

Question

Invested moderately conservatively, how long would it take to make a million from $400,000?

Answer 1

By the time it reaches a million dollar conservatively, 1 million dollar won't be worth that much. It will take around 11 years. 1 million than would equal to less than your starting money. Bank only gives you back 3-4 % usually. However, inflation is 7-10% every year.

You have to take risks in order to increase your wealth. Otherwise, everyone would be rich.

Answer 2

If you could average an 8% return each year, with interest compounded annually or quarterly, $400,000 would grow to $1 million in about 11 years, depending on tax liability which would reduce the amount or increase the time to reach the target.

Bear in mind that $1 million in 11 years time is likely to have considerably less buying power than today, due to inflation.

Answer 3

Use the rule of 72. Divide what interest rate and earning you expect into 72 and that is how often your money will double.

Example at 6% your money would double every 12 years.