Time to a million
A million dollars is the round-number goal that captures most investors’ ambitions, even if the actual target ought to be higher (or lower). The math of getting there is a function of three things you control, and one you do not.
You control: starting amount, monthly contribution, and how long you stay invested. You don’t control: the return rate. The calculator uses an assumed rate so you can run scenarios.
A few things worth noticing
Time matters more than rate. Compare 30 years at 7% vs 25 years at 10%. The longer window often beats the higher rate. The single biggest lever you control is starting now and not stopping.
The contribution is the foundation. Try changing only the monthly contribution. The contribution establishes the floor of your wealth; compounding does the rest. A $500 vs $1,000 monthly contribution is the difference between two very different ending balances.
The S&P 500 has averaged ~10% annually over a century. That is a high bar; most investors realize less because they sell during drawdowns or hold portfolios that drag against the index. We use 8% as a more realistic default for an investor who actually stays in the market.
The 60-year ceiling is by design. If your inputs require more than 60 years to reach the target, the tool says so. That’s a signal that the contribution is too low or the target is too aspirational for the inputs.
See what the model portfolios actually compound at
The Advising Alpha model portfolios have compounded at meaningful multiples of the S&P 500’s long-run rate over the backtest. See the full performance record and methodology.
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