Consistently saving a small percentage of your salary is a simple way to make sure you’re ready for retirement.
As a rule of thumb, most financial advisors suggest you save 10-15% of your income.
Here’s a case study assuming you start with no savings, plan to retire at age 65, and have investments that earn 6% per year.
If you want to retire with $2 million, you will need to invest about 24% of a $50,000 salary starting in your twenties. Waiting until you are older will require more of your salary. If you wait until your thirties, this figure increases to 34% of your salary. This does not take into account variables such as a possible increase or decrease in salary, correspondence with the employer, inflation or any other curve of life.
Watch this video to find out how much money you’ll need to invest to save $2 million for retirement, broken down by age.