Everyone in the class raised hands when I asked “Who wants to be a millionaire?” So here’s how you realize this dream.
Your employer offers a 401(k) retirement plan to its employees with a matching contribution of 50% of your contributions. You earn $50,000 per year and contribute 6% of your salary per month to the 401(k) plan. Your salary will grow at a rate of 2% per year for 45 years and you expect your conservative retirement investment portfolio to earn 6% per year compounded monthly. How much money will you have in your retirement account at the end of 45 years?