How To Earn $50K A Year In Interest For Retirement
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An interest-only retirement plan can fund your retirement without draining your savings, but you will need to save a lot of money to make it possible. NerdWallet crunched the numbers, and we can tell you how much you need to save every month, broken down by age, to get $50,000 every year in an interest-only retirement. Check out this video to learn how much you will need, in order to make it a reality.
Retirement usually involves giving up your annual salary, but you will still need an income to survive. While Social Security will cover a part of your budget, the rest of your money will most likely need to come from your savings and investments.
The median baby boomers 401(k) plan has a total balance of $69,900, according to Fidelity. Assuming they withdraw 3% of their savings per year, they would be left with a total of less than $2,100 to spend.
If you want bigger drawdowns, youll need to save up a much larger nest egg before you retire. NerdWallet crunched the numbers, and we can tell you how much you need to save now to get $50,000 every year in retirement, without taking a bite out of your principal.
First, some ground rules. The numbers assume you will retire at 65 and have no money in savings now. For investing, we assume an annual 6% return when you are saving and a more conservative 3% rate for your interest-only retirement. We do not factor in inflation, taxes or any additional income you may get from Social Security.
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How To Earn $50K A Year In Interest For Retirement
Retirement usually involves giving up your annual salary, but you will still need an income to survive. While Social Security will cover a part of your budget, the rest of your money will most likely need to come from your savings and investments.
The median baby boomers 401(k) plan has a total balance of $69,900, according to Fidelity. Assuming they withdraw 3% of their savings per year, they would be left with a total of less than $2,100 to spend.
If you want bigger drawdowns, youll need to save up a much larger nest egg before you retire. NerdWallet crunched the numbers, and we can tell you how much you need to save now to get $50,000 every year in retirement, without taking a bite out of your principal.
First, some ground rules. The numbers assume you will retire at 65 and have no money in savings now. For investing, we assume an annual 6% return when you are saving and a more conservative 3% rate for your interest-only retirement. We do not factor in inflation, taxes or any additional income you may get from Social Security.
Subscribe to CNBC Make It.: http://cnb.cx/2kxl2rf
About CNBC Make It.: CNBC Make It. is a new section of CNBC dedicated to making you smarter about managing your business, career, and money.
Connect with CNBC Make It. Online
Get the latest updates: https://www.cnbc.com/make-it
Find CNBC Make It. on Facebook: https://cnb.cx/LikeCNBCMakeIt
Find CNBC Make It. on Twitter: https://cnb.cx/FollowCNBCMakeIt
Find CNBC Make It. on Instagram: https://bit.ly/InstagramCNBCMakeIt
#CNBC
#CNBCMakeIt
How To Earn $50K A Year In Interest For Retirement
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