Alright, you’ve made it to Baby Step 4—investing 15% of your income for retirement. By investing 15%, you free up the rest of your income to focus on giving generously and tackling your other goals.
Here’s the deal: Most people will need about 55%–80% of their preretirement income to maintain their lifestyle in retirement. The good news? If you start saving 15% of your income from age 25 to 67, you should hit that goal.
Let’s break it down: Even if you make $50,000 a year and start saving 15% of your income at age 30, you’re looking at retiring with over $5 million. That’s without factoring in raises or promotions. That’s the power of consistency and time!
To get started, invest in good growth stock mutual funds and spread your portfolio across four categories: growth, growth and income, aggressive growth, and international. This strategy will help you build wealth steadily and securely.
Work with a pro who knows what they’re doing! Connect with one of our RamseyTrusted SmartVestor Pros who can help you create a plan and stay on track.
Remember: Building wealth is a marathon, not a sprint. Stick to the plan, stay consistent, and you’ll cross the finish line with dignity, confidence, and freedom.