3 Easy Steps to Becoming a Millionaire by the Time You Retire

If you invested in large-cap stocks over the last 20 years, you would've had an average rate of return of 9.06%. Over that same period of time, investing in a portfolio of U.S. investment-grade bonds would've earned you 4.88% on average, and blending 40% bonds with 60% stocks would've yielded you 7.4% on average every year. Because you would've earned a lower rate of return, though, you would need higher contributions of $9,500 every year instead of $7,000 if you wanted to reach $1 million in 30 years.