Automatically saving a percentage of your salary can be one of the easiest ways to fund your retirement.
But figuring out how much your contributions will equal in the future can be confusing. If your plan is to get to $1 million, starting younger will go a long way toward keeping the process manageable.
As a rule of thumb, most financial advisors suggest you save 10% to 15% of your annual salary. Saving less is likely to leave you with regrets, while going too much higher than that can put a strain on your budget.
Personal finance website NerdWallet crunched the numbers, and we can tell you exactly how much of your $50,000 you’ll need to tuck away to get there.
Just a few things to remember: These numbers assume you have no money in your retirement plan, that you will get a 6% return on your investments and that you will retire at age 65.
The math also does not account for potential pay increases, employer matches, inflation or any curveballs life may throw at you. So plan accordingly.
Now let’s dive into the figures. Watch this video to find out how to make it happen.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.