How to Make a Million at 55
Seven-figure savings strategies for fifty-somethings.
From Kiplinger's Personal Finance magazine, February 2008
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You've Saved: 0$
To reach one million by age 65 you need to save $5,466 per month.
If You've Saved: $50,000
To reach one million by age 65 you need to save $4,859 per month.
If You've Saved: $100,000
To reach one million by age 65 you need to save $4,253 per month.
If You've Saved: $200,000
To reach one million by age 65 you need to save $3,040 per month.
Successful Savings Strategies
Take advantage of your peak earning years to top off your savings.
Add an extra $5,000 in catch-up contributions to your 401(k) savings and an extra $1,000 to your IRA.
As you near retirement, reallocate your portfolio to 70% stocks and 30% bonds.
Estimate your retirement expenses and your projected income. If you're coming up short, consider working a few more years.
SEE ALSO:
HOW TO SAVE A MILLION AT AGE 25
HOW TO SAVE A MILLION AT AGE 35
HOW TO SAVE A MILLION AT AGE 45
BACK TO:
HOW TO MAKE A MILLION
Have more retirement questions? Find the answers at Jumpstart Your Retirement.
Reader Comments (10)
Posted by: frank waugh at 01/29/2008 12:40:18 PM
if i had an extra 5,466 a month to put away i wouldnt need you.
Posted by: Kathy at 02/25/2008 09:05:23 AM
Well, looks like I'm outta the game, that's more than twice as much as I make in a month.
Posted by: Mark at 03/27/2008 07:54:29 PM
...you... shouldn't...wait... til 55 to save money for retirement....
Posted by: georgina at 07/14/2008 04:24:56 AM
Are you kidding us,I have never made $5400 a month in my life,I am not a senator,or lawyer,or a doctor.
Posted by: Bill at 07/14/2008 06:09:28 PM
Guess I'll keep playing the market, the puppies and the ponies.
Posted by: charles w. coates at 07/19/2008 10:27:06 AM
thanks for the information.
Posted by: Cindi at 08/13/2008 11:58:12 AM
I've been saving for over 20 yrs and I see my investments go down monthly I have been putting $5000 yrly for several of those yrs and I'm not seeing 8% that's really bs with the recent economy. Seems futile to me!
Posted by: Jesse House at 02/11/2009 11:04:26 AM
Doesnt seem like bs to me cause im 17 and i can do it
Posted by: cloe at 06/22/2009 08:38:58 AM
I never made much money during my life. Went through two divorces and was left with nothing but starting over. Needless to say I have nothing saved until this year which is a small pittance compared to what this article says I should (have) saved. My biggest concern and horror to find out is that I would need to save each month more money than I make a month. After paying bills there isn't much left. I am saving all I can but now it seems like there is no point because it won't even make a dent on what I need.
Posted by: john taylor at 06/22/2009 03:58:04 PM
...interesting, but predictable, article. As someone said below, if i were making over $5K a month, i would need you. How true, for the most part...Pretty useless really, to the older folks out there, over 45., who live as best they can, and still getting hours cut, with rising prices inevitable...