Skip to comments.Want To Retire With $1 Million? Here's How Much You Need To Be Saving Right Now (Based on your age)
Posted on 03/24/2014 6:37:38 PM PDT by SeekAndFind
We recently pointed out that starting to save early for retirement is extremely helpful, and also a useful chart showing how much you should have saved at different stages of your career to ensure a comfortable retirement.
To show how these ideas work, we figured out how much money you would have to set aside monthly, starting at different ages, and under different rates of return, to end up with $1,000,000 in savings when you are ready to retire at 65.
Here is how much you would need to save each month at a 6% annual rate of return, starting at different ages.
So if you're 20, and you want to retire a millionaire, you should be socking away $361 per month. If you're starting at 25, that jumps to $499. You can see how as you get older, you need to be saving much, much more:
(Excerpt) Read more at businessinsider.com ...
In 50 years you’ll have a million dollars. But a loaf of bread will cost $100,000.
LOL. I have to save more than twice my income each month...
... save each month at a 6% annual rate of return...
The above statement pretty well reduces the whole article and associated chart to nonsense. Author probably never heard of the Federal Reserve or Central Banks.
Easy, sell my company. Now the hard part is building its value up so someone wants to buy it.
Inherit $2,000,000 and blow half of it on hookers and liquor.
So, my assets are already there. It’s just a matter of keeping up the property values, and keeping down the debt.
Slow and steady....
Well, that’s a little depressing. In order to retire at 65 (I’m 62) with a million bucks I’d have to save a million bucks a year until then. The federal government gets the rest.
My husband and I are set; however, our investments were originally for a beach house. Now it’s for healthcare and whatever we can’t hunt, plant, and harvest.
Work till you drop, then you don’t have to worry.
I'm now 51 years old. My youngest son graduates high school in three years. As soon as he's out of high school, I'm retiring. Going to zero wage income. Why? First, because I can afford it. Second, because the College Education system is a rip-off and if I'm still working when my sons go to College, I make enough that I'll get charged full boat for both.
Retired with zero wage income, they qualify for all kinds of Government grants and assistance.
About effing time I started getting some of the high tax dollars I've been paying all these years.
I was wondering about that 6% myself. I double-checked date on article to see if it was originally published on paper in 1970s.
My Daughter and Son-in-Law should be millionaires before too long. They are both just wage earners and will not inherit much from me but they will from her Maternal Grandfather.
They might would have made it anyway as their combined income is over $100,000 a year. I bet they are paying a lot in taxes tho.
Well that’s depressing.
There are a number of some families who have decided to do just that. The parents decide to retire - or - the child emancipates himself/herself. Either case they get more financial aid.
There was a student who emancipated herself. She then hired herself out as a nanny. She was able to get a full ride to an expensive private university. Actually there were many students who have done this.
Part of the problem with these charts is that they seem unattainable for those in their 20s.
Save early. Save often. Live within your means. Invest in the stock market. American business will always find a way to turn a profit no matter who’s in office.
As you get older, it may be easier to put more aside. Make saving a priority.
But the very worst thing you can do is to say the sky is falling, I might as well spend all my money today.
They sky may fall. But chances are that it won’t.
Chances are that you will reach 65, the world will still be turning, politicians will still be politicians, and American businesses will still be turning out profits.
If you have spent all your money, taxpayers like me will make sure you don’t starve. But, then again, I won’t envy your life.
All I need is the 14% that the government currently takes from me in Social Security taxes at the point of a gun.
I was about bust 17 years ago. Started over and worked on the road for much of the last 17 and now I am about to retire set up better than I ever dreamed.
Hard work with God’s help can work wonders if you don’t live to impress the neighbors.
I hate stupid financial stories like this. I know how to calculate how much I have to save and all that. That is just cookbook stuff. What I need to know how do I get the G-D 6% without risking all my cash or spending all day every day watching the G-D stock market.
I've known you here on FR for a long time now. We run across each other's path now and then and I always thought you were a smart guy.
Once again you just proved why ... if you don't live to impress the neighbors.
Exactly right. We've lived well below our means for many years. The Bible tells us to prepare for the hard times, which we've always done. I've been fortunate that in the 27 1/2 years I've been married, I've only lost my job once. Even then, I was re-employed within weeks and that was during the 90-92 recession.
I don't drive the best or newest vehicle (mine is 11 years old, wife's is now 6) and we don't live in a house that one might think I would with my salary. We live in a very modest home in a modest area. I'm the guy most people look right past thinking I don't have the money and savings I do. Frankly I prefer it that way.
For a period of time when my kids were growing up, all their friends had the latest and greatest of everything. My kids always wondered why they didn't have "like their friends did."
This recession has caused quite a few of their friends to move out of their homes when mommy and daddy lost their job and couldn't afford to keep the house along with the rest of their lifestyle. Between my two sons, six or seven friends "had to move" when their homes were reposessed.
My kids NOW see why we live the way we do. They get the value of money, and they're learning entrepreneurial skills. The two of them cleared over $1,100 each shoveling snow this winter. From that, they built a customer list of lawns they're going to mow for the summer. See, they cannot find jobs around here. All the adults are working McDonalds, Panera Bread, and all the retail level jobs the kids would be working. So they've had to "make their own way" and find things to do to make money. They even scrap metal using their bicycles to haul metal back to the house. They probably collect about two tons a month which nets them about $500/mo ($250 per ton) also.
You and me, we have the right idea. The trick is to make sure kids learn the lesson also so they don't come back after college is over, live in our basements and play x-box all day, hihi!