Independent, Fee-Only Financial Advisor

Independent, Fee-Only Financial Advisor

Wednesday, January 18, 2012

aggressive saving

The key to accumulating wealth is just that - accumulating it. Aggressive saving, saving early and often, is the key to having money in the future.

This article at reveals how to accumulate $1,000,000 in your 401(k) type retirement account. SPOILER ALERT The key is saving. The author suggests that 13% savings on a modest salary is enough to accumulate over $1 Million by retimrement. Vanguard recommends saving 10-15% of income for a comfortable retirement.

Steps to retirement account success:
  1. Take advantage of your employer match, usually 3%. If they don't offer one, pester them, ask for it in your yearly review, or whenever the issue of pay and benefits comes up.
  2. Every time you get a raise or a bonus, up your  contribution. You lived without that money before, you can certainly spare SOME of it now!
  3. Inch your contribution up a little each year anyway. You may only save 3% this year, but with the help of a 3% match and an extra percentage each year, you will be well on your way to a comfortable retirement.