2. Keep your eye on the clock
Timing is a huge part of football and your retirement savings, too.
The game clock heavily influences how a team plays. A trailing team will want to move fast to get the ball down the field for a score. Meanwhile, a team in the lead can take its time.
The same is true for your retirement savings. If you’re older than 40, you need to run a hurry-up offense to quickly beef up your retirement fund. If you’re younger, you may have time to kill.
For example, this government investment calculator tells us you’d have to start saving somewhere around these amounts each month to get to a million-dollar retirement fund by age 67.
- $95 per month starting at age 20
- $255 per month starting at age 30
- $690 per month starting at age 40
This assumes you’re starting with zero investments and get a 10 percent rate of return on your money.
The number is a bit more daunting for those in the 40-plus crowd, but don’t despair. If you’ve ever had a job with a 401(k) or 403(b) plan, chances are you’ve already got a head start.
Even if you truly have zero saved for retirement, putting away $300 per month for retirement starting now will still give you a nice fund balance at age 67.