Retiring with a million dollars can seem overwhelming, especially if you only have ten years left. Saving $4,964 per month at 10% returns is a challenge, but there are still ways to achieve your goal. Maximize contributions to a 401(k) or IRA, cut back on expenses, start a side hustle, invest wisely, and stay disciplined. Following these tips can set you up for a comfortable retirement.
If you have 10 years until retirement
Saving a million dollars for retirement is a daunting task, especially if you have only 10 years left until retirement. At 10% returns, you would have to save $4,964 per month to reach a million dollars. That’s pretty tough to do, especially if you haven’t built up the habit of saving consistently over your lifetime.
But don’t worry, there are still ways to save for retirement even if you have only 10 years left. The key is to start now and be disciplined with your savings.
1. Maximize your contributions
If you have a 401(k) or IRA, make sure you are maximizing your contributions. For 2021, the contribution limit for a 401(k) is $19,500 and $6,000 for an IRA. If you are 50 or older, you can make catch-up contributions of $6,500 for a 401(k) and $1,000 for an IRA.
2. Cut back on expenses
Cutting back on expenses is another way to save for retirement. Take a hard look at your budget and see where you can cut back. Can you reduce your housing expenses by downsizing or moving to a cheaper area? Can you reduce your transportation expenses by using public transportation or biking to work?
3. Start a side hustle
Starting a side hustle is a great way to earn extra income and save for retirement. Do you have a skill or hobby that you can turn into a business? Can you offer your services as a consultant or freelancer? Starting a side hustle can also be a way to transition into retirement by building up a business that can continue to generate income even after you retire.
4. Invest wisely
Investing wisely is crucial when you have only 10 years left until retirement. You want to make sure your investments are diversified and aligned with your risk tolerance. Consider working with a financial advisor to help you make the right investment decisions.
5. Stay disciplined
Finally, staying disciplined with your savings is key. Make saving for retirement a priority and stick to your plan. It may be tempting to dip into your retirement savings for other expenses, but resist the urge. Remember, every dollar you save now is one step closer to reaching your retirement goals.
In conclusion, saving a million dollars for retirement is a challenge, but it’s not impossible. If you have only 10 years left until retirement, maximize your contributions, cut back on expenses, start a side hustle, invest wisely, and stay disciplined. By following these tips, you can set yourself up for a comfortable retirement.
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