Something I overhear here and there is that you need a million dollars to retire.
Can we stop with that?
Estimating the size of the nest egg you need to retire is highly contingent on your risk tolerance, projected returns, inflation estimates, the amount and time period over which you’d like to make withdrawals, and more. These numbers are different for different people. Interestingly enough, these numbers don’t always come out to a million dollars.
Why make a big deal out of this?
A million dollars is a big number. It’s the kind of number a young person can look at and say, “I’ll never get there.” A gigantic goal can feel impossible. And, why even try to accomplish an impossible goal?
Saving for retirement is a very long-term project, and (generally speaking) the sooner you begin, the better. Don’t get discouraged that it’s a big goal, just get started.