Bull in Stock Market

Below is a chart to show you how much money you will need for retirement. It is based on your age and your income. For example, if you are 40 years old and make $100,000 a year, you need $260,000 by age of 40 to stay on track. The chart assumes a 5% annualized rate of return.

Are you behind? Do you have enough in your retirement account? If you don’t, you will need to either start saving at a higher rate or make a much higher rate of return than 5%!


But if you are investing in the available financial products, can you make 5%? Well, if you invest in the S & P (without fees) based on its history, you may make a 7% return. Since most financial products come with fees and they underperform the S & P, it’s not likely that you (the average investor) will make a 5% return.


So if you don’t have the amount of funds required to retire and you pay fees on your account, you already have two strikes against you!


Image courtesy of hywards