4 Steps to Becoming a 401(k) Millionaire
Though saving $1 million for retirement won't guarantee you financial security in your senior years, a nest egg of that size should be enough to allow you to approach them with confidence. Of course, building a $1 million 401(k) plan balance is easier said than done, but here are a few tips that will help you achieve that goal -- or perhaps even surpass it.
The more time you give your retirement savings to grow, the more wealth you're likely to end up with. It's really that simple. Imagine you contribute $300 a month to your 401(k), which may be doable even on an average salary. If you give yourself a 30-year savings window and your 401(k) investments deliver an average annualized 7% return -- a rate that's just below the stock market's average -- then you'll wind up with about $340,000.
Now, that is well shy of $1 million.
Source Fool.com
