For most people, two million dollars in savings is more than enough to guarantee a comfortable retirement. The majority of people are able to retire after having saved eight times their ending salaries, according to Fidelity.Continue Reading
Every retirement situation is unique. While some retirees prefer a quiet life in a small town, others wish to travel the world and enjoy a pampered life of luxury. Saving enough for more ambitious goals is possible with careful planning and financial discipline. While two million dollars seems like a lot of money to save, compound interest and time both make it a more achievable goal. The earlier retirement savings begin, the less money needs to be set aside each year to meet ambitious goals.
To ensure two million dollars lasts through a healthy retirement, savings must be diversified and optimized for growth. Ideally, withdrawals come from the annual growth of investments and not the principal balance. This helps ensure a retirement account survives regardless of the longevity of an individual. Saving two million dollars for retirement ensures the returns on the investments keep the income coming for as long as the retiree is alive while saving the lump sum to cover end-of-life medical expenses and still leave plenty of money to family or charity.Learn more about Financial Planning