this post was submitted on 19 Feb 2025
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It’s certainly possible to earn yourself into being a millionaire without fraud. You need more than a million dollars just to retire in the US.
Billionaires are another story entirely.
It’s certainly possible to become a millionaire without committing any fraud - you just have to start as a billionaire first.
If you are given/get/earn $51,000 and you invest that at a 7% return when you are 21 and never save a single extra penny, at age 65 you will have $1,001,051.44.
I'm not suggesting everyone can come up with $51k at 21. This is just illustrating that the path to being a millionaire is can be more about how early you start saving rather that how much. If you start saving much later, you have to save much MUCH more to reach $1m.
How many banks in the US offer that rate?
If you're looking at parking your money in a bank for any appreciable return, you're going to be disappointed. 7% is a moderately conservative expected return rate especially given a 45 year time horizon. The boring S&P 500 has a historical rate of return of 9% to 11%.
I’m not, I’m British, I think the highest bank interest rate here available to anyone is 4, maybe just under 5. I was just after comparisons. Thank you though.
Bank interest rates will never be a path to wealth. At most they help your money stay even with inflation, but usually not even that. This is a reliable low risk way to park money that might npbe needed on short notice, such as an emergency fund
investments might make you wealthy, over a very long time, assuming prudent choices. However usually risk is inversely proportional to reward: you can also lose a lot very fast, or you might only make middlemen wealthy. Investing is a huge topic area with all sorts of sometimes conflicting advice.
However looking historically there has never been a, was it decade, where the SP500 stock index lost money. The most reliable way for most people to raise their status might be:
Your 4% and 5% across the pond are about the same here stateside for what are considered "high yield" savings accounts (government protected) or money market accounts (private-based protection). These rates are largely tied to US Treasury Bill rates which echo what you're seeing on your side too.