Two million dollars may seem like a lot of money.
And for most of us, it is: A typical American household only has about $9,000 in savings.
But what if you could retire with $2 million by the time you were 67? Well, the good news is that it’s possible with persistent monthly saving, and you can get there no matter your age.
Reaching that milestone, however, takes determination, especially if you don’t start until later in life. Personal finance site NerdWallet crunched the numbers, broken down by age group, to demonstrate how much you’ll need to stash away on a month-to-month basis.
First, let’s go over how they got there. The math assumes you are starting with no money in savings, that your investments will earn 6 percent in annually, and that you retire at 67.
Saving programs to help you reach that mark could include your employer’s 401(k), which is a tax-advantaged retirement savings account, or a Roth IRA or traditional IRA. Investment options include low-cost index funds.
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.