For someone who makes $80,000 a year, the idea of saving $1 million for retirement can be daunting. But if you follow a clear plan, with a little enthusiasm and the right timing, it’s probably within your reach.
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 your age when you start investing.
CNBC crunched the numbers and found that if you make $80,000 a year, how much of your income you want to keep hidden?
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 plan accordingly.
clock video See above to find out how much you need to save to reach your goal.
