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Who Wants To Be A Millionaire?
Example B:
Two Different Contribution Strategies.
How much retirement savings are enough? The answer depends, of course, on how much you can comfortably afford to invest. In the table below, Investor D's goal is to retire at age 65 with over $4 million in savings, which means he will have to fund it more aggressively—$110,750 over 57 years.
Investor D's strategy, on the other hand, is to retire with $1.25 million in retirement savings at age 65. To reach his goal, Investor D funds his investment plan for only six years, an investment of only $6,750. While both investors will reach their goals, Investor D will enjoy a 188-fold return on his investment, while Investor E will receive only a 38-fold return.
Disclaimer: Figures, calculations, and illustrations are for illustrative purposes only. They are based on a hypothetical rate of return of 10% and does not represent investment in any specific product. They may not be used to predict or project investment performance in any product and of course market returns will vary and could lose value. Unless noted, charges and expenses that would be associated with an actual investment are not reflected.
