The Lotto Max bug has bitten deep. Large swaths of the population have succumbed to the get-rich-quick dream. Not me. I do not buy lottery tickets. For one thing, the odds are better elsewhere. In fact, there is a way to become a millionaire with virtual certainty.
The main ingredients are compound interest, thrift, and time. The essential thing is to have about 10% of your paycheque automatically deducted at source and deposited into a low-cost family of index funds (like the TD eFund family).
Now, lets pull up some numbers from a recent MoneySense Magazine article. Lets say you:
are 25 years old earninga salary of $40,000 (increases 3% annually) invest in a balanced portfolio of stocks and bonds (historically earns 6% a year) invest inside an RRSP and reinvest the RRSP refund.
Then, by age of 65, youll be a millionaire. Cant wait that long, or starting later in life? Then save at a higher rate, like 20%. You can still become a millionaire. Its called getting rich, slowly. And the odds are way better than 1 in 28 million. In fact, with the appropriate tweaking, the odds can be 100%.