YOUR RETIREMENT
PLAN, SAVE & MAKE YOUR MONEY LAST
You've Saved: $0
To reach one million by age 65 you need to save $286 per month.
Successful Savings Strategies
You're just starting your career, so this is your chance to build a solid financial foundation. Time is on your side.
Contribute enough to your company 401(k) plan to capture your employer match. If you don't have a retirement plan at work, fund an IRA.
You'll be investing for 30 years or more, so you can afford to keep 100% of your account in stocks.
Pay down credit cards and other high-interest debt. That will free up money to save for a house.
Set up an emergency fund equal to three to six months of take-home pay. Stash it in a readily accessible account in an online bank that pays interest of 4% or more.
SEE ALSO:
HOW TO SAVE A MILLION AT AGE 35
HOW TO SAVE A MILLION AT AGE 45
HOW TO SAVE A MILLION AT AGE 55
BACK TO:
HOW TO SAVE A MILLION
Have more retirement questions? Find the answers at Jump-start Your Retirement.
POSTED BY: Rob (May 19, 2008 07:14 PM)
If you save $286.00 a month in an I.U.L., earning 8% interest over 35 years, by age 65 it will have grown to $444,359 off of an original investment of just $120,120. You can then take an income stream on that money from age 67 to age 100 (or death) and you can draw approx. $44,574 a year, income tax free, for a total of $1,470,942 over your retired life until you die. Can't get much better than that!...
POSTED BY: Alfredo (July 19, 2008 06:57 PM)
I started saving up on my 401k since I was 19 years old and opening up a stock account so I can investing in some stocks. For me I would have to have more then a million dollars in my retirement account. I am exposing myself to more emerging market(s) then domestic stock(s) so I can get a more ROI plus I am still young so I can take the rollercoaster ride. I learned this by my parents mistake of not investing... while having annual income of 100k a year.
POSTED BY: Brian (August 17, 2008 05:28 PM)
Rob, your figure of $44,574 per year income at retirement is before inflation. At 3% annual inflation over 35 years that $44,574 is reduced to $15,840 in todays dollars. That's not a good retirement. At 3% annual inflation, the value of money is cut in half every 23.5 years. A 20 year old planning to retire at age 67 will need almost $2 million in 47 years to retire comfortably.



DIGG THIS

Reprint Article











