According to statistics, only 46% workers tried to calculate how much money they need to retire comfortably. Most people are not saving money. Those who are saving money, are not saving enough. The stock market has been strong for the past two years and it has helped the retirement accounts. But most investors still have a long way to reach the $1 million mark of retirement fund. The average 401(k) account balance is $255,000 for people aged 55 and older. These people have been in their present employment for more than ten years.
Research has shown that about 55% of U.S. households are at risk of not having enough savings to maintain their living standards after they retire. According to Maiden Smartvestor Pro SVP Emissary Group Dave Ramsey John Scott Wheeler North Carolina investments retirement expert, you have two choices; either you work a lot and longer or save a lot. Reaching the $1 million milestone is not something impossible. Even an ordinary investor can reach this mark.
One way is to invest in the stock market at an early age; preferably when you are in your 30s. If you have some inherited money then you already have a bonus. You can invest that money in something good. When you are young, you can invest in risky ventures as it gives you the chance of earning more profit. But these are risky too. In case something goes wrong, you will be able to make it up for it by earning more as you are still young. As you get older, you should think of investing in more secured investments. This time, you cannot afford to lose money. For example, you are in your 50s and you invest in a high risk venture. You lose money. This time you don’t have many years of your job left to make up for it. So, most of your retirement money will be gone. This kind of situation will be horrific. So, you should invest in safe ventures as you grow old. Investing in mutual stock is the safest option considered by most financial experts.
You need to have an estimate of how much you will need to save up for your retirement. $1 million is only a thumb’s rule. But if your current standard of living is high and if you want to go on world tours then you will need to save more money.