💼 Baby Step 4: Invest 15% of Your Income for Retirement
You’ve made it to Baby Step 4—let’s go! Now it’s time to invest 15% of your income for retirement. Why 15%? Because it sets you up to build real wealth and frees up the rest of your income to give generously and knock out other goals.
📈 Why 15% Works
Most people need 55%–80% of their pre-retirement income to maintain their lifestyle once they stop working. If you start saving 15% of your income from age 25 to 67, you’re on track to hit that mark—without worry.
Let’s say you make $50,000 a year and start saving 15% at age 30. Even with no raises or promotions, you could retire with over $5 million. That’s the power of consistency + time.
📊 Where to Invest
Start with good growth stock mutual funds and diversify your portfolio across four categories:
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Growth
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Growth and income
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Aggressive growth
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International
This mix balances risk and return and helps you grow wealth steadily over time.
👩💼 Get Help From a Pro
You don’t have to figure this out alone. Work with a RamseyTrusted SmartVestor Pro who’ll help you create a plan, explain your options, and keep you on track toward your goals.
🏁 Retire with Dignity
Building wealth is a marathon, not a sprint. Stay consistent. Stick to the plan. And you’ll retire with confidence, dignity, and freedom. Let’s do this!