Here's the Truth About How Much You Need to Save If You Want to End Up a Millionaire
A seven-figure nest egg doesn't have to be a pipe dream -- but you need to understand how much to save to make it a reality.
Overview
If you retire with $1 million, your nest egg should safely be able to produce somewhere around $40,000 in income for your first year of retirement, with withdrawals adjusted in subsequent years to account for inflation. That's based on the 4% rule, a common rule of thumb for setting a safe withdrawal rate.
Many people set the goal of saving $1 million for retirement because it's a simple number to work toward. But is it actually a realistic goal? How much would you have to save to hit the target?
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Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.