What is the best way to save $1 million by retirement?
I am 20 years old, and want to start saving for retirement! I would like to have $1 million by retirement!! And I am able to put at least anywhere from $100-$300 per month...but I am a student, with no job...so I understand that I can't do a Roth IRA. So, what kind of fund will I get a lot of interest...like 10%? Thanks for your help!
Public Comments
- Thinking about saving for retirement at such a young age is great. You have plenty of time. Better to start worrying about this though after you graduate and get a job. Then you can start to worry. At this time there are no guaranteed investments that can earn you a rate of 10%. Better to lower your expectations. However, Obama's economic plans will most likely give us hyper inflation down the road and much higher interest rates. Then you might get 10%, but inflation will eat most of that up. Once you graduate and get a job at your young age a diversified portfolio of domestic and foreign stocks will be the best way to grow your retirement nest egg. As you get older you should diversify some of your investment into fixed income investments. One last thing, $1,000,000 is a nice goal, but by the time you retire (40-45 years from now) you'll need a lot more than $1,000,000. I'm looking to retire in 5-10 years and hope to have $3,000,000 by that time. I have a long ways to go. But am hoping the market comes back.
- Put $100/month into good mutual funds starting now. In 40 years, you will have over $1 million. This assumes the average return of the market over the next 40 years matches the average return over the last 70 years.
