4 Effective Strategies to Grow Your Retirement Savings to $1 Million

Ways to Grow $100,000 Into $1 Million for Retirement Savings

Building a decent nest egg is much easier if you don't have to do all the heavy lifting on your own. For most of us, getting started is the toughest part of investing. Once you have a decent foundation saved up, compounding can play an incredibly powerful role in getting you the rest of the way to a comfortable nest egg.

1. Let compounding work its magic on its own

• Nobody can guarantee what stocks will do, but those of us who invest do so with the expectation that the overall market will likely rise over time.
• At the market's long-run historical return rate of around 10% per year, $100,000 will turn into $1 million all on its own in around 24.2 years.

2. Keep on socking away the money you've been investing

1. It's rather risky to put all your faith in compounding to get you there.
2. Therefore, it's advisable to keep on saving money as your nest egg gets larger, to help that compounding work even better.

3. Enlist Uncle Sam's help

• One way to get more money compounding for you is to make your investments inside a traditional 401(k).
• If you're in the 24% tax bracket, money you invest comes directly out of your paycheck, before income taxes.

4. Ask your boss to kick in a bit, too

1. Your boss may also help provide a boost to your retirement savings by offering a match when employees elect to put money aside for their retirement inside the company's 401(k) plan.
2. Matches vary by employer, but a common one is $0.50 per every dollar the employee contributes, up to 6% of that employee's salary.

Get started now and give compounding, your continued savings, Uncle Sam, and your boss the longest possible runway to work together to help you achieve that goal.