If you make $120,000 a year, saving $1 million for retirement may seem out of reach. But if you follow a clear plan, with a little enthusiasm and the right timing, it’s certainly possible.
As a rule of thumb, most financial advisors recommend saving 10% to 15% of your salary for retirement. However, if your goal is to reach his $1 million, the percentage you need to invest will vary significantly depending on the age you start investing.
CNBC crunched the numbers and found that if you make $120,000 a year, how much of your income you want to keep hidden?
Personal Finance Details:
60% of Americans still live paycheck to paycheck
Today’s graduates earn less than their parents.
Only 19% of Americans increased their emergency savings in 2023
These numbers assume you plan to retire at age 65 and have no current savings.
Financial advisors typically recommend changing the mix of investments in your portfolio over time, becoming more conservative as you approach retirement. For investments, we assume an average annual return of 6%. It doesn’t take into account inflation, taxes, salary increases, or other factors that affect your savings that affect your life, so be sure to plan accordingly.
clock video See above to find out how much you need to save to reach your goal.
