savings

Retire a Millionaire: Strategy for Your 20s

Seven-figure savings strategies for twentysomethings who are just starting out.

At age 25, you've Saved: $0

To reach one million by age 65 you need to save $286 per month, (This assumes an 8% annual return, invested in stocks.)

Successful Savings Strategies

You're just starting your career, so this is your chance to build a solid financial foundation. Time is on your side.

Contribute enough to your company 401(k) plan to capture your employer match. If you don't have a retirement plan at work, fund an IRA.

You'll be investing for 30 years or more, so you can afford to keep 100% of your account in stocks.

Pay down credit cards and other high-interest debt. That will free up money to save for a house.

Set up an emergency fund equal to three to six months of take-home pay. Stash it in a readily accessible account. Online banks tend to pay higher interest rates than brick-and-mortar banks.

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