Most financial planners recommend saving between 10% and 15% of their annual income. In addition, some investment apps offer robotic advisors, such as Wealthfront and Betterment, to help you determine which investments make sense for you based on your risk tolerance, your goals, and your retirement date. And even if the dollar amount you invest fluctuates, establishing investment discipline from the start and then maintaining it, no matter what is happening in the market at the time, is valuable. The goal of any investment is to get more cash than you deposit in the profit (or loss) you incur is your return on investment.
If you plan to invest a certain amount each month in your investment account (a strategy known as average dollar costs), include this amount after selecting the “monthly” option. Thanks to compound interest, people in their 20s who want to retire at 60 can invest less money each month compared to someone who starts investing at 30.