"If you're in your mid-40s with $1 million in retirement savings and you're hoping to end up with $2 million at a traditional retirement age, then you likely shouldn't worry too much. Historically, major U.S. stock-market indices have averaged around 8-10% annual returns (including dividends) over long periods. If you compound at, say, 8% yearly for 20 years, $1 million becomes about $4.66 million."
"Instead of worrying about how to get to $2 million at a normal retirement age, in this situation, you should really be asking yourself how high your savings can go. If you keep funding your savings and investing wisely, you might end up with four times the amount of savings you have today - or even more. Of course, this depends on"
Many people reach their mid-40s with little money saved for retirement. A $1 million nest egg places someone well ahead of many peers but will likely support comfortable basic needs rather than a lavish lifestyle. Doubling to $2 million by a traditional retirement age is realistic with continued savings and investing. Historically, major U.S. stock indices have averaged roughly 8–10% annual returns including dividends; at 8% for 20 years $1 million compounds to about $4.66 million, and at 10% to about $6.73 million. Ongoing risks include market downturns, inflation, sequence-of-returns risk, and changing spending needs. Keep funding retirement accounts to the maximum and invest wisely to increase the chance of far exceeding $2 million.
Read at 24/7 Wall St.
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