Retirement Planning

What you need to save to be a millionaire

by National Peo National Peo No Comments

Most people retire with not much savings and have to rely mainly on Social Security. Not good planning. So how do you become a millionaire? Start investing early. This table, courtesy of Kiplinger’s 2007 retirement planning guide, shows what you need to save monthly to accumulate $1 million by age 65. Start now!

IF YOU’RE 25
You’ve saved: $0
What you need to save per month: $286

IF YOU’RE 35
You’ve saved: $0
What you need to save per month: $671
You’ve saved: $50,000
What you need to save per month: $304

IF YOU’RE 45
You’ve saved: $0
What you need to save per month: $1,698
You’ve saved: $50,000
What you need to save per month: $1,298
You’ve saved: $100,000
What you need to save per month: $861

IF YOU’RE 55
You’ve saved: $0
What you need to save per month: $5,466
You’ve saved:$50,000
What you need to save per month: $4,859
You’ve saved: $100,000
What you need to save per month: $4,253
You’ve saved: $200,000
What you need to save per month: $3,040

The figures assume the money is invested in a tax-deferred retirement account, earning 8 percent annually with all earnings reinvested.