The Average Age When People Become Millionaires

iStock
iStock

If you start investing in a retirement plan early in your career, you don’t have to bring home an insanely high salary to become a millionaire—eventually. (Thank you, compound interest.) The average age when bank accounts reach the seven-figure mark is in a person’s late 50s, according to Business Insider and The New York Times.

The average age when women become millionaires is slightly lower than the average age for men, despite the persistent wage gap in the workforce. For women, the average age is 58.5 years old, while for men, the age is 59.3. Or at least that’s the case for people with Fidelity 401(k) retirement plans, according to the investment firm’s research. That means that millionaires are reaching that milestone several years before the usual retirement age of 66 to 67 years old.

Nevertheless, how much money you need to retire comfortably varies based on your current salary, your expenses, and the number of years you’ll be living off your nest egg. Many financial advisers say you should aim for $1 million or more, which will hopefully last you through a 30-year retirement.

Reaching that million-dollar mark may seem like a long shot, but Fidelity has found that more and more of its savings plan customers have become millionaires in recent years. One of the firm’s recent analyses found that 133,000 of its customers had $1 million or more in their accounts in 2017, compared to 89,000 in 2016. (The company oversees 401(k) accounts for around 15 million people, so that’s not exactly a huge portion of its customers, though.) Between 2005 and 2017, the number of women who had $1 million in their retirement accounts doubled.

Fidelity attributes this increase to people putting more money away for retirement than in past decades. On average, the firm’s customers making less than $150,000 a year become millionaires by saving around 22 to 25 percent of their salaries in retirement funds, including employer matches. That may seem like a lot if you aren’t making a six-figure salary, but keep in mind that the earlier you start saving, the more your money grows. Investing just a little money in your 20s is a more effective way to save for retirement than investing a lot of money in your 30s and 40s. So if you want to become a millionaire (and who doesn’t?), now would be a good time to start investing in that 401(k).

[h/t Time]

Save Up to 80 Percent on Furniture, Home Decor, and Appliances During Wayfair's Way Day 2020 Sale

Wayfair
Wayfair

From September 23 to September 24, customers can get as much as 80 percent off home decor, furniture, WFH essentials, kitchen appliances, and more during the Wayfair's Way Day 2020 sale. Additionally, when you buy a select Samsung appliance during the sale, you'll also get a $200 Wayfair gift card once the product ships. Make sure to see all that the Way Day 2020 sale has to offer. These prices won’t last long, so we've also compiled a list of the best deals for your home below.

Rugs

AllModern/Wayfair

- Mistana Hillsby Power Loom Beige Saffron/Teal Rug $49 (save $97)

- Wrought Studios Shuff Abstract Blue Area Rug $100 (save $105)

- All Modern Lydia Southwestern Cream/Charcoal Area Rug $49 (save $100)

- Union Rustic Gunter Power Loom Blue/Khaki Rug $22 (save $38)

- Willa Arlo Interiors Omri Oriental Light Gray/Ivory Area Rug $49 (save $149)

Furniture

Langley Street/Wayfair

- Alwyn Home 14-inch Medium Gel Memory Foam King Mattress $580 (save $1420)

- Andover Mills Pascal Upholstered King Bed Frame $318 (save $832)

- Sol 72 Outdoor 8-Piece Sectional Seating Group with Cushions $650 (save $1180)

- Langley Street Darren 68-Inch Tuxedo Arm Sofa $340 (save $1410)

- Three Posts Tyronza Coffee Table $147 (save $193)

Kitchen

NutriBullet/Wayfair

- Cuisinart 11-Piece Aluminum Non Stick Cookware Set $100 (save $200)

- Rachael Ray Cucina 10-Piece Non-Stick Bakeware Set $92 (save $108)

- NutriBullet Rx Smart 45-Ounce Personal Countertop Blender $124 (save $56)

- Henckels Graphite 13-Piece Knife Block Set $160 (save $340)

- DeLonghi ECP3220 15-Bar Pump Espresso Machine $120 (save $90)

Electronics

Samsung/Wayfair

- Samsung 36-Inch French Door Energy Smart Refrigerator $3600 (save $400)

- Cosmo 30-Inch Freestanding Electric Range Oven $1420 (save $1580)

- Whynter 19-Bottle Single Zone Built-In Wine Refrigerator $380 (save $232)

- bObsweep PetHair Robotic Vacuum Cleaner with Mop Attachment $226 (save $443)

- Rowenta Focus 1700 Iron with Burst of Steam $68 (save $47)

Work From Home Essentials

Foundery Select/Wayfair

- Techi Mobili Adjustable Laptop Cart $50 (save $20)

- Foundry Select Arsenault Farmhouse Desk $210 (save $190)

- Symple Stuff Clay Mesh Task Chair $128 (save $121)

- Three Posts Salina Standard Bookcase $183 (save $617)

- Lorell Hard Floor Chairmat $52 (save $39)

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Here's the Very Best Time to Buy a New Car—and the Very Worst Time

If you want the best deal possible on a new car, it pays to know when to shop.
If you want the best deal possible on a new car, it pays to know when to shop.
Zero Creatives/iStock via Getty Images

Shopping for a new car can be a challenge. In addition to figuring out what make and model suits your lifestyle best, features and accessories can make the decision even more confusing. All of it affects the sale price, and even if the seller is willing to negotiate, it can be hard to know if you’re getting the best deal possible.

As it turns out, the time of year can have an enormous influence on the cost of the vehicle. If you want the greatest amount of leverage, try to buy in December. Here’s why.

According to MarketWatch, dealers are offered incentives by automobile manufacturers based on their sales volume. The dealer might receive a cash rebate, or they might get an opportunity to continue selling popular models. Depending on the manufacturer, they might even get a bonus for every car sold, making it worthwhile to sell a car at or below cost if it means getting hundreds of dollars more for every other car moved off the lot. Whatever the incentive, it benefits the dealer to move inventory.

Those quotas are typically measured by month, by quarter, and by year. In December, all of those goals come together, and a dealer is likely more willing to come down on the price of a vehicle to satisfy their sales objectives before the end of the calendar year.

Because quotas are measured monthly and quarterly, it also makes sense to try and buy at the end of the month or the end of a quarter—March, June, September, and December.

Remember that this approach works best for new cars. Used cars don’t normally have the same quotas or incentives attached. Because the value of trade-in cars increase toward the end of the year, you might find the best prices and selection in the fourth quarter.

More anecdotally, you might also find better deals on a Monday compared to the rest of the week, as less foot traffic means a salesperson probably has more time to find ways to save you money.

The worst time to buy? Avoid going early in the month. Dealers aren’t as concerned with meeting quotas. And avoid Saturdays. Because people tend to go car shopping on weekends, the rush of customers means dealers have less time to negotiate and more opportunities to sell.

[h/t MarketWatch]