4 Ways to Grow $100,000 into $1 Million for Retirement Savings
Got an extra $100,000 you don't need right away? You're doing great! The fact is, however, that's probably not going to fund the kind of retirement many people intend to have. A lot of people are aiming for a nest egg of an even $1 million, which can generate enough dividends and interest income to support a nice lifestyle without dipping into any principal.
The proverbial million-dollar question is, of course, how do you turn $100,000 into $1 million? Time is required regardless of your approach. But there's more than one way to turn that seed money into something much bigger over time. Here are four possible paths to take, from smartest to craziest.
The stock market's average annual gain can be anywhere from 6% to 12%, depending on how the figure is calculated and the timeframe in question. Even at the low end of that range, however, stocks typically outpace inflation. That's the ultimate goal of risking capital when safer ways of preserving its value are available.
Source Fool.com
