Retirement savings are a long-term game. Most of us start saving about three decades before we ever touch the money. Consistently saving and investing your money is the best way to grow your wealth and achieve a comfortable retirement. But you might not know how much you should have in your IRA at different ages. And hey, it’s tricky to figure that out. That’s why I’m here to help today.
Your IRA is one of the best tools you’ve got for reaching your retirement goals. No matter what type you have — traditional, Roth or SEP — they’re all great ways to tuck money away for your future. (If you don’t have one yet, Investor Junkie has selected Betterment as our favorite pick for IRA accounts for beginner investors.
Milestones make it easier to save and easier to see when you’re getting off track. Studies show that setting specific goals that have a timeline and are measurable are easier to reach. So knowing you’re working toward a certain retirement number, and having milestones to reach by certain ages, makes saving easier overall.
Of course, people at different income levels will be able to achieve different exact numbers for their savings. Someone making $40,000 a year probably won’t be able to save as much as someone making $100,000 a year. Then again, someone making $40,000 might not need as much saved as someone making $100,000 a year. Personal finance is exactly that: personal. Our suggestions below are outlines, not hard and fast rules for everyone.