$1 million in retirement savings may be unnecessarily large for some people and not enough for others, but it is still a useful guide to help develop one’s specific retirement strategy. A salary savings ranging from 10% to 15% is a typical recommendation from financial planners, and the specific savings percentage for a given year can differ based on variables such as one’s current job or economic downfalls. Using an employer’s 401(k) plan and matching said employer’s contributions is one way to start a retirement fund, but one can also seek out other options such as IRAs or brokerage accounts. It is extremely important for one to save and invest as early as possible in one’s life due to compound interest.
Key Takeaways:
- Although $1 million in retirement funds may be insufficient or overkill, it is still a useful guideline for retirement planning.
- Use your employer’s 401(k) plan, and if this cannot be done then search for other ways to build up retirement funds.
- Building up one’s retirement account as early as possible is crucial to a successful retirement.
“these numbers don’t take into account the many ups and downs you may experience over your lifetime, including periods of unemployment or sudden financial windfalls or losses”
