Using the date in these two graphs, answer this question: how much will most millennials need to begin investing, per month, in order to have $1M in retirement? Explain your answer.
Using the date in these two graphs, answer this question: how much will most millennials need to begin investing, per month, in order to have $1M in retirement? Explain your answer.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Using the date in these two graphs, answer this question: how much will most millennials need to begin investing, per month, in order to have $1M in retirement? Explain your answer.
Transcribed Image Text:### How Much Millennials, Gen X and Boomers Have Saved for Retirement
This information provides a snapshot of the retirement savings of different generational groups: Millennials (aged 18-34), Gen X (aged 35-54), and Boomers & Seniors (aged 55+).
#### Millennials (18-34):
- **42.2%**: Don't have retirement savings
- **29.8%**: Have saved less than $10K
- **11.2%**: Have saved $10K - $49K
- **6.3%**: Have saved $50K - $99K
- **3.4%**: Have saved $100K - $199K
- **2.2%**: Have saved $200K - $299K
- **4.9%**: Have saved $300K or more
#### Gen X (35-54):
- **29.8%**: Don't have retirement savings
- **21.9%**: Have saved less than $10K
- **11.2%**: Have saved $10K - $49K
- **10.3%**: Have saved $50K - $99K
- **8.8%**: Have saved $100K - $199K
- **6.2%**: Have saved $200K - $299K
- **12.1%**: Have saved $300K or more
#### Boomers & Seniors (55+):
- **28.0%**: Don't have retirement savings
- **17.3%**: Have saved less than $10K
- **8.7%**: Have saved $10K - $49K
- **7.1%**: Have saved $50K - $99K
- **10.3%**: Have saved $100K - $199K
- **5.8%**: Have saved $200K - $299K
- **22.4%**: Have saved $300K or more
*Data courtesy of GOBankingRates.com*
### How Much You Need to Save Per Month to Have $1 Million at Retirement
This chart illustrates the monthly savings required to reach $1 million in savings by retirement, with an assumed 6% return rate. The amount needed to save monthly varies significantly based on the age you
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