Interesting article from Fidelity that analysed secrets of accountholders whom achieved a million.
I think I am going to adjust my investing strategy a bit to try and invest 22% of my salary annually...according to my current projections and past performance of some of the other numbers they analyzed I would exceed the million mark.
Some quiick facts from this article:
Specifically, current 401(k) millionaires:
Fidelity calculates that someone who earns $40,000 a year and starts saving at age 25 will have $1 million by age 67, assuming he or she receives 1.5% annual raises, saves 16% a year, and earns a 7% annual return. If returns average 5.5%, he or she would need to instead save 22% a year—a sum that includes the employer match.
Learn the secrets of the 401(k) millionaires - Encore - MarketWatch
I think I am going to adjust my investing strategy a bit to try and invest 22% of my salary annually...according to my current projections and past performance of some of the other numbers they analyzed I would exceed the million mark.
Some quiick facts from this article:
Specifically, current 401(k) millionaires:
- Started saving early and therefore had accumulated $426,000, on average, by 2000. (Their current average balance: $1.2 million.)
- Saved 14% of their annual pay, on average, not including their company match.
- Took full advantage of company contributions that averaged 4.8%, by saving up to their employer’s match and receiving profit-sharing contributions.
Fidelity calculates that someone who earns $40,000 a year and starts saving at age 25 will have $1 million by age 67, assuming he or she receives 1.5% annual raises, saves 16% a year, and earns a 7% annual return. If returns average 5.5%, he or she would need to instead save 22% a year—a sum that includes the employer match.
Learn the secrets of the 401(k) millionaires - Encore - MarketWatch