The question is, can you retire with $1 million? For us to answer this question, we need to study the dos and don’ts of investing. Investing is like playing golf, you challenge yourself through your discipline 

The 10,5,3 rule, this states that you can expect returns of 10% from equities, 5% from bonds and 3% on liquid cash and cash like accounts. 

The emergency fund rule stated that you must put away 3-6 months’ worth of expenses in a liquid savings account to ensure its available at short notice.

100 minus your age rule is used for asset allocation. Subtract your age from 100 to find how much of your portfolio should be allocated to equities.

Pay yourself first rule, as you work, you must put away part of your salary for your effort in working. Expert says 10% of the income must go here and the amount must increase as the income rises over the years.

When do you consider yourself wealthy? Thomas J Stanley and William D Danko made a rule of thumb formula in ‘The Millionaire Next Door’ book that can help determine American if they are wealthy. The logic behind the formula is that the older you are and the more money you make, the more net worth you should have. The formula is age multiplied by pre-tax income divided by 10, determines the net worth. If your net worth is greater than what is expected of your age, then you could be wealthy.