If you saved 200 a month at age 23 and retired at age 65. Is there a single plan that would allow to reach anywhere around 1.5 Billion?
Dustin. The probability of reaching max savings of $1.5 billion is very low. The factors that go into this calculation are monthly savings amount, time, and the growth factor. Since the monthly savings amount and the time are fixed, the growth rate would have to be 29.19% per year. There is a trade off between riskiness of investments and the return, however 29.19% is a very high growth rate and unlikely to be achieved.
However, it is important to start saving early because of the power of compounding, especially if you use a tax advantaged 401k or IRA account. Using your same savings rate of $200 per month and time frame with a 5%, you will have $342,269 saved.
I encourage you to begin your savings plan. If you work for a company that provides a 401k plan, enroll in it and start savings. If your company offers a match, try to contribute to the maximum, because you will receive the matching funds, almost like free money for you.
If you would like to discuss your situation in more detail, I can be reached at 908-821-9764.