Saving as much as you can as soon as you can is the secret to a financially secure retirement. That includes , but not limited to, taking advantage of qualified retirement vehicles. It’s that simple and it’s possible for just about anyone.
The amount a person must accumulate is relative to their income just before retirement. If you are earning $40,000, you don’t need to accumulate millions. At 66 in 2020 your family Social Security annual benefit is about $22,266. This means to replace 100% of pre-retirement income you need to accumulate about $443,350 over your entire working life.
One of the keys to an enjoyable retirement is a steady income. For some that means dividends – outside a retirement plan. If you start small buying dividend paying stocks, reinvest all dividends over many years, it’s possible to build a nice modest supplemental income stream to be used in retirement.