Could You Save a Million Dollars for Retirement?

When you hear the phrase, “American Dream”, what do you picture? You might see a beautiful home, a white picket fence, a loving family and a fluffy dog. Or, your ideas might be more abstract: Concepts like freedom or financial independence might come to mind.

Speaking of financial independence, many people dream of growing a retirement account worth one million dollars or more. For a lot of us, that number represents the price of our dreams. And yet, some feel that saving a million dollars for retirement is out of reach. Others assume they will eventually get there, but they fail to plan appropriately and never reach the goal.

The truth is that saving a cool million could be entirely in reach, but it isn’t going to happen overnight and it’s not going to happen without a lot of planning and careful strategizing!

A recent retirement fund analysis of millionaires revealed some interesting information about those who were able to meet this savings goal:

• They began saving early in their careers
• On average, millionaires contributed 14 percent of their salaries to their retirement accounts each year
• They took full advantage of matching funds from employers, and profit-sharing opportunities when available
• They never took cash distributions or borrowed from their accounts, for any reason
• These millionaires tended to invest more in equities

Some of these facts probably sound a bit obvious, but here’s something interesting about those who saved a million dollars for retirement: Many of them were middle-income earners with salaries below $150,000 per year. So yes, high-income earners obviously have an advantage, but even the middle class have a solid shot at accumulating a comfortable fortune. That says a lot about the power of early and regular financial planning.

Of course, we never want you to take on more risk than you can afford. Always seek professional advice before making major decisions about financial planning. Give us a call, and we can help you identify a strategy that helps you achieve your dream for the future.