It's Time to Rethink This Popular Retirement Rule

The income you receive from Social Security in retirement probably won't be enough to cover all of your expenses and allow you to lead a comfortable lifestyle. Rather, you'll need outside income to maintain a decent standard of living, and that's where your savings come in.

It's a good idea to start socking money away in an IRA or 401(k) plan from a young age, and then invest that money aggressively so it grows into a substantial sum over time. In fact, if you play your cards right, you might end up with a much higher savings balance than expected.

Case in point: Socking away $500 a month over a 40-year period will leave you with an ending balance of around $1.5 million if your investments generate an average annual 8% return. Since that's a bit below the stock market's average, that's certainly doable.

Source Fool.com