If you make $65,000 a year, saving $1 million for retirement may seem out of reach. But with some dedication and the right timing, it’s definitely possible; if you stick to a clear plan.
As a general rule, most financial advisors recommend saving 10% to 15% of your salary for retirement. But if your goal is to reach $1 million, the percentage you should invest will vary greatly depending on how old you are when you start investing.
CNBC broke down the numbers, and we can tell you how much of your income you’d be willing to put aside if you make $65,000 a year.
More from Personal Finance:
60 percent of Americans still living paycheck to paycheck
Today’s graduates earn less than their parents
Buy holiday flight tickets in October
These figures assume you plan to retire at age 65 and don’t currently have money in savings.
Financial advisors often recommend that the investment mix in your portfolio gradually become more conservative as you approach retirement. We assume an average annual return of 6% for the investment. We don’t take into account inflation, taxes, wage increases, or other factors that affect the savings life may throw your way; so make sure you make your plans accordingly.
Watch video See above to find out how much you need to save to reach your goal.