Question
To keep up with inflation and maintain your current lifestyle most will need more than $1 million of accumulated wealth. If you are a professional
To keep up with inflation and maintain your current lifestyle most will need more than $1 million of accumulated wealth. If you are a professional who makes about $100,000 per year, the magic number will have to be closer to $2 million.
This may sound like a lot of money, but when you look at this $2M number in the context of potentially having 30 years to live when you retire at 65 -- that $2M number is only approximately $66,000 of income per year!
That good news is that someone who sets aside 10%-20% of their paycheck for 30-40 years can easily exceed $2 Million investment goal I am throwing out there as a discussion point.
We will only reach our goals if we take advantage of our employers Independent Retirement Account (IRA) account (often times a 401(k) or 403(b) for non-profits). We set up a personal IRA account called the Roth IRA, and have non-tax sheltered investments with a private brokerage account.
After reviewing the content in our material this week about workplace IRAs (401(k)/403(b)), your personal Roth IRA,and private brokerage accounts please use the money calculator and comment on how much wealth you may accumulate in 30-40 years of investing. What are the amounts in these accounts? Is accumulating $2 million realistic and why?
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