GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
This shows how difficult the journey between the twowealthmilestones can be.
Heres how long it really takes tobuild wealth and turn $1 million into $1 billion.
The following investment options illustrate that point.
So what if you were to invest your $1 million into it and just wait?
It would take about 71 years to become a billionaire less if you continue making annual contributions.
That may be too long for you to enjoy billionaire status.
You could take a stab at speed up the timeline by investing in riskier equities, like individual companies.
These are more volatile, which means they have a higher upside but a larger downside.
The more patient strategy is the safer one.
Residential properties generate average annual returns of 10.6%.
That would theoretically make you a billionaire in 69 years.
Real estate investment trusts do better, withaverage annual returnsof 11.8%.
They could turn you into a billionaire within 62 years.
However, this is a riskier option than stocks.
Thatll cause problems if housing prices stop going up for an extended amount of time.
These all pay you interest for storing your cash with an institution.
The downside to this safety is the lower interest rates.
For example, savings accounts generated just a 0.22% average annual percentage yield in 2009.
They offer more than that today, but only because federal interest rates are relatively high.
However, it’s possible for you to lock in that rate for only so long.
That means your children may not get to enjoy being billionaires, but their children might.
But you may not want to wait several decades for that to happen.
Here are three other strategies you may be able to use to speed up the timeline.
This can leave you with more money to save and invest so you could build your wealth faster.
Invest In Alternative Assets
you could also invest in alternative asset classes that offer higher potential returns.
These include cryptocurrency, collectibles, paintings andeven distressed debt.
Or you could lose everything.
Thats the game you play when you invest in asset classes like these.
Paying off major loans will free up more space in your monthly budget.
Whatever strategy you select, patience will be important.
The faster you have a go at reach $1 billion, the more risk youll have to assume.
More From GOBankingRates
Share This Article:
