Retirement planning can seem overwhelming, but reaching the $1 million milestone is more achievable than many think—with the right strategy and consistency. In our webinar, “How to Save $1 Million for Retirement,” we break down practical savings approaches, investment considerations, and the key factors that influence how much you need to put aside each month. Below, we summarize the main takeaways. Be sure to watch the full webinar for detailed guidance and expert insights.

How Much Should You Save Each Month?

One of the most common questions is: How much do I need to save each month to retire with $1 million? The answer depends on several factors, including your starting age, expected investment returns, and contribution rates.

• Starting in Your 20s? You may only need to save around $300-$500 per month, thanks to the power of compounding.

• Starting in Your 30s? The required savings increase to $600-$1,000 per month depending on your investment returns.

• Starting in Your 40s? You’ll need to be more aggressive, aiming for $1,500+ per month to hit the $1 million goal by retirement.

The Power of Compound Growth

Investing early allows your money to grow exponentially through compounding. By consistently saving and investing in tax-advantaged accounts like 401(k)s and IRAs, you maximize your earnings potential while benefiting from tax-deferred growth.

For example:

• A $500 monthly investment at a 7% annual return over 40 years grows to over $1 million.

• Waiting until your 40s to start saving? You’ll need to contribute significantly more each month to reach the same goal.

Investment Strategies for Long-Term Growth

To build wealth efficiently, it’s essential to allocate your savings wisely. Some best practices include:

• Diversification: Spread investments across stocks, bonds, and other assets to reduce risk.

• Low-Cost Index Funds: Historically, broad market funds offer solid long-term returns with minimal fees.

• Employer Contributions: Maximize any available 401(k) match to boost your savings without extra effort.

• Tax-Advantaged Accounts: Take full advantage of Roth IRAs, Traditional IRAs, and HSAs to optimize tax savings.

Adjusting for Inflation and Retirement Lifestyle

A million dollars today won’t have the same buying power in 30 years. Consider these key factors:

• Inflation: Assume a 2-3% annual inflation rate when planning future expenses.

• Retirement Spending: Will you downsize, travel, or continue working part-time? Your lifestyle dictates how far your savings will stretch.

• Healthcare Costs: Medical expenses can rise significantly in retirement, so factor them into your plan.

Key Takeaways and Next Steps

• Start early and stay consistent—even small contributions add up over time.

• Leverage employer contributions to boost savings effortlessly.

• Invest in a diversified, low-cost portfolio to maximize returns.

• Plan for inflation and future expenses to ensure long-term financial security.

Building a $1 million retirement fund is within reach with the right plan and discipline. To see how this applies to your unique situation, contact a member of our team for personalized guidance.