GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you might read more about oureditorial guidelinesand our products and servicesreview methodology.
Its a smart people thing [1].
That would amount to approximately $100,000 in investment growth each year in addition to your nest egg.
The question is, can you live off of $100,000 in retirement each year?
For many people, this savings plan is a traditional or Roth 401(k).
If you work for a tax-exempt organization, its the 403(b).
Federal employees have the Thrift Savings Plan.
If youre self-employed and have no employees, consider opening a solo 401(k).
If you dont qualify for these options, Ramsey recommends you contribute to ataxable investment account.
In 2024, you are allowed up to $7,000 inannual Roth IRA contributionsif youre under age 50.
If youre 50 or older, you could contribute $8,000 annually.
The 2024 traditional 401(k) employee contribution limit is $23,000.
If youre 50 or older, you could also make catch-up contributions up to $7,500.
Invest for the Long Term
Investing is a marathon, not a sprint.
This is especially true whenbuilding wealthfor your future.
Some years, your stocks may be way up, while others could see them tank way low.
This is what Ramsey calls the buy-and-hold strategy.
More From GOBankingRates
Share This Article:
