A new study suggests you can earn more than a million dollars in retirement if you follow a few simple rules.
Nyslrie Strain, a senior financial planner at the Institute for Retirement Research at the University of Toronto, said the research showed that the average American could earn more in retirement by investing in a variety of asset classes.
Strain said the study looked at the assets held by retirees from the United States, Canada, Australia, New Zealand, Japan and the European Union.
She said they have been known to grow in value over time and that this could lead to better outcomes for retirement.
For example, if you have a 401(k) plan with an annualized return of 5%, you can expect to earn about $12,000 annually.
But if you invest in a mutual fund, you could expect to make $10,000 per year.
Stain said if you are a young, middle-income retiree and have no retirement savings, you may not have to work as much as some retirees to get to the million-dollar milestone.
She said a 401k account can be a good place to put your money.
Stains study found that an individual with $50,000 in assets, or a married couple with a combined income of $250,000, could expect about $14,000 a year in retirement income.
If you’re an older, single person and have $100,000 of assets, you can look at a 401.
But if you’re a college graduate with $80,000 or less in assets and $20,000 invested in a 401, you will be earning more than $40,000.
Stress said the findings showed that if you want to live comfortably in retirement, you should be able to meet your retirement goals.
She recommended that you follow these rules to increase your retirement income and ensure that you have the financial cushion to take on the unexpected challenges of retirement.