"Many people reach their mid-40s with little or no retirement savings, so if you are already sitting on 1 million dollars at that age, you are in an excellent position. You are ahead of most Americans by a wide margin. Still, a million dollars is not the golden ticket it used to be. It may cover your basic expenses comfortably, but it probably will not fund a lavish retirement. Wanting to double that amount before leaving the workforce is completely reasonable."
"If you are in your mid-40s with 1 million dollars saved for retirement and you are aiming to reach 2 million dollars by a typical retirement age, you probably do not need to worry. Historically, major U.S. stock indexes have delivered average annual returns of roughly 8 to 10 percent over long periods, including dividends. At an 8 percent annual return over 20 years, 1 million dollars grows to about 4.66 million. At 10 percent, it grows to roughly 6.73 million."
Many people reach their mid-40s with little or no retirement savings, so holding $1 million at that age places someone well ahead of most Americans. A million dollars can cover basic expenses but will likely not fund a lavish retirement. Targeting $2 million by retirement is reasonable and achievable with continued saving, disciplined investing, and long-term planning. Historical U.S. stock returns of roughly 8–10% annually could grow $1 million to about $4.66–$6.73 million over 20 years. Risks include market volatility, inflation, sequence-of-returns risk, and changing spending needs. Consistent contributions and staying invested increase the chances of exceeding the goal.
Read at 24/7 Wall St.
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