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How Much Will You Need to Retire Comfortably?
Financial experts generally agree that you’ll probably need at least
75% of the income you currently make to maintain your current lifestyle
after retiring.
To figure out how
much you should be investing to provide that much income, click here to
begin using our retirement planning calculator.
The Importance of Starting
Early
Some careful planning now has the potential to make your future more secure.
Putting away just a small amount on a monthly or annual basis can help
you get on track toward your goal. The chart below illustrates the dramatic
difference between investing early and waiting.
In order to have
$1 million at age 65, you’d have to invest the following amounts
at various ages. The chart is hypothetical and assumes an 8% annual return.
This is not a representative of any particular investment or mutual fund.
| Age |
|
Years
Until
Age 65 |
|
Monthly
Investment |
|
| 20 |
|
45 |
|
$189.59 |
| 30 |
|
35 |
|
$435.95 |
| 40 |
|
25 |
|
$1,051.50 |
| 50 |
|
15 |
|
$2,889.86 |
The Power of Compounding
Once you establish
a foundation for your investment, you can help it grow by reinvesting
any interest, dividends and capital gains your mutual funds pay you right
back into the market. Compounding may produce dramatic results over time.
The sooner you begin investing, the more time you'll have to take advantage
of the power of compounding.
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