Are You on Track for a 7-Figure Retirement?
Written by
Cindy Lamothe
Edited by
Amber Barkley
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When it comes to retirement, a million dollars isn’t what it used to be — but it’s still a solid goal.
In 2024, Fidelity reported a 27% increase in the number of seven-figure 401(k) accounts, with over 537,000 participants reaching that milestone.
So, how close are you to hitting that seven-figure mark?
Whether you’re decades away or already mapping out your golden years, now’s a great time to check in and see if you’re on the right path. After all, building a secure future takes more than just hoping things fall into place — it’s about taking action today.
“Saving $1 million dollars is 100% achievable — it just takes discipline, strategy and a willingness to stay focused on the goal,” said Phill Battin, CEO of Ambassador Wealth Management.
Here’s a look at where you stand and how you can set yourself up for a comfortable, stress-free retirement.
Impressing Others Is Holding You Back
According to Battin, one of the obstacles to achieving a seven-figure portfolio goal is that people often spend money they don’t have on things they don’t need to impress people they don’t like.
In other words, people waste a lot of money on luxury material goods to project an image of wealth rather than saving to build actual wealth.
Tips for the Average Investor To Start Their Journey to a $1M Portfolio
Start as early as possible so that your money begins to work for you. As Albert Einstein is often quoted, “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”
Thanks to compound interest, time is your best friend, said Battin. Aside from starting early, he suggested living below your means. “Spend less than you earn; save and invest the difference.”
Additionally, try to avoid the temptation of impulse spending by limiting your online shopping and wandering through malls.
In other words: Don’t let your spending increase at the same rate as your income does.
“If you have more than 10 years to save, invest for growth by purchasing stocks, real estate and other growth assets,” Battin said.
At the same time, he advised automating everything. Set up automatic contributions — not just to a 401(k), but to personal savings or brokerage accounts. He said automation removes the temptation and procrastination that can often interfere with the best intentions to save.
Finally, try to keep fees, taxes and expenses to a minimum. “When possible, utilize tax-efficient index funds and low-cost active managers,” Battin explained.
Here’s How the Math Works
Scenario A: You’re 25 Years Old
- Save $500/month in a stock market index fund with an 8% annual return.
- In just over 33 years, you’ll have over $1.1 million.
- Boost to $1,000/month? You hit $1 million in under 27 years.
Scenario B: You’re 35 Years Old
- Save $1,000/month (8% annual return) — $1 million in approximately 25 years
- Save $2,000/month (8% annual return) — $1 million in approximately 18 years
Scenario C: You’re 45 Years Old
- Save $1,200 at 8% annually, and you will reach your goal of $1 million by age 65.
Additional Strategies To Help You Reach Your Goal
If you’re having trouble saving enough, try these strategies to give your retirement a boost.
Max Out Retirement Accounts
According to Battin, many people don’t know that even if you max out your 401(k), everyone who has earned income is eligible to contribute to a non-deductible IRA, which will allow tax-deferred growth.
At the same time, if your employer matches contributions in your 401(k), make sure to contribute enough to fully earn the match — it’s free money.
Also consider opening a Roth IRA and contributing post-tax for tax-free withdrawals in retirement.
Use Budgeting Apps
Battin also recommended using apps that help you track your spending.
“Cut big expenses: Housing, cars, food — those eat your budget fast,” he explained.
Set Up Automatic Contributions
And if you’re having a hard time saving in your 401(k), Battin advised setting up an automatic 1% increase each year until you reach 10% to 15%.
“Use part of your annual raise to boost your contributions — you’ll still see more in your paycheck, but you won’t really notice the extra amount going to savings,” he explained. “Before long, you’ll be saving 15% without feeling the pinch.”
Remember: Saving for the future is a real way of achieving peace of mind.
“After all,” Battin said, “you can buy a bed, but you can’t buy sleep!”
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