If you are making $50,000 a year, the thought of racking up $1 million for retirement can seem daunting. Yet with a little dedication and a lot of time, you can get there.
As a rule of thumb, most financial advisors suggest you save 10% to 15% of your annual salary. Personal finance website Nerdwallet crunched the numbers, and we can tell you exactly how much of your $50,000 you’ll need to tuck away to get there.
Just a few things to remember: these numbers assume you have no money in your retirement plan, that you will get a conservative 6% return on your investments and that you will retire at age 65.
The math also does not account for potential pay increases, employer matches, inflation, or any curveballs life may throw at you. So plan accordingly.
Now let’s dive into the figures. Watch this video to find out how to make it happen.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.