For most people, two million dollars in savings is more than enough to guarantee a comfortable retirement. The majority of people are able to retire after having saved eight times their ending salaries, according to Fidelity.Know More
Every retirement situation is unique. While some retirees prefer a quiet life in a small town, others wish to travel the world and enjoy a pampered life of luxury. Saving enough for more ambitious goals is possible with careful planning and financial discipline. While two million dollars seems like a lot of money to save, compound interest and time both make it a more achievable goal. The earlier retirement savings begin, the less money needs to be set aside each year to meet ambitious goals.
To ensure two million dollars lasts through a healthy retirement, savings must be diversified and optimized for growth. Ideally, withdrawals come from the annual growth of investments and not the principal balance. This helps ensure a retirement account survives regardless of the longevity of an individual. Saving two million dollars for retirement ensures the returns on the investments keep the income coming for as long as the retiree is alive while saving the lump sum to cover end-of-life medical expenses and still leave plenty of money to family or charity.Learn more about Financial Planning
The average retirement savings for Americans between 45 and 54 is $101,000. Having retirement savings between $100,000 and $250,000 is most common for Americans in this age group. Fifteen percent of Americans between 45 and 54 have less than $25,000 in retirement savings.Full Answer >
Plan for your retirement with regular savings that take advantage of deferred taxes and employer contributions, states CNN Money. You need to ensure that the returns beat inflation and avoid touching your retirement funds until your actually retire, advises the Department of Labor.Full Answer >
The government offers taxpayers the 401(k) as a retirement savings plan sponsored by their employer. Using this program, workers are able to save and invest a portion of their paycheck before the employer withholds taxes. According to The Wall Street Journal, the employer matches a certain percentage of the savings invested by the employee.Full Answer >
A 457 retirement plan is a retirement savings account offered to government employees and some employees of nonprofit organizations, states CNN Money. Advantages over other retirement plans include no penalties for early withdrawals and enhanced catch-up contribution options, reports Kiplinger.Full Answer >