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Here’s How You Can Save $2 Million For Retirement On An Annual Salary Of $50,000 (Video)

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By Emily Lorsch

Consistently saving a small percentage of your salary is a simple way to ensure you’re prepared for retirement.

As a rule of thumb, most financial advisors suggest you save 10% to 15% of your earnings.

Here’s a case study assuming you start with no savings, plan to retire at 65 and have investments that earn 6% annually.

If you want to retire with $2 million, you’ll need to invest about 24% of a salary of $50,000 starting in your 20s. Waiting until you’re older will require a larger portion of your pay. If you wait until your 30s, then that number jumps to 34% of your salary. This does not account for variables such as a possible pay increase or decrease, employer match, inflation or any other of life’s curveballs.

CNBC, excerpt posted on SouthFloridaReporter.comSept. 20, 2022

This article originally appeared here and was republished with permission.

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