Let’s say you’ve decided that one million dollars is your retirement savings goal (not that you’d be opposed to more). Is that a reasonable goal? Is it obtainable for you at this stage in your life? See the image below for an estimate of what you should be saving monthly to retire with one million dollars, based on your savings timeline.
Right about now you are probably experiencing one of two responses: 1) a satisfied nod and internal fist bump, or 2) a noticeable stomach churn. Try not to worry. You can still make adjustments that will course correct your financial goal, even if it lands short of a million.
3 Keys to Becoming a Millionaire
- Starting is paramount. Starting early allows the magic of compounding interest to bolster your savings over time. The earlier you start, the more time your investments have to grow. Even small contributions made early on can grow substantially over several decades.
- Your investment choices. How you invest plays a crucial role in achieving your savings target. Assess your strategy based on your risk tolerance. Younger investors may have a higher risk tolerance and can afford to invest more aggressively.
- Accelerate your savings. Capitalize on employer contribution matches to accelerate your savings journey. These matching funds serve as a valuable boost toward reaching your goal. How? It’s essentially free money. Never leave free money on the table...or at the office.
Be a responsible parent and grandparent. Share this information with your children and their children. Talk with them about the importance of starting a savings habit at a young age to make it easier to hit their retirement savings goal. Teach them what you wish you would have known when you were their age.
Remember, there’s no “one size fits all” retirement plan. Use this calculator to estimate what you may need to save for retirement. By starting a savings habit, making wise investment choices, and utilizing your employer’s retirement options, you can experience a financially stable retirement…regardless of whether you hit actual millionaire status
