A new paper from J.P. Morgan Asset Management lays out the real way to build wealth — $6 million in retirement accounts and two fully funded college savings plans, to be exact. The story of the LeesThe J.P. Morgan analysis shows how a hypothetical couple, the Lees, could effectively save for both retirement and college for their two children. They’re high earners — a combined salary of $137,000 at age 28 — so the paper puts their retirement needs between $4.8 million and $6.3 million. When they have children, they can actually shortchange that 15%, directing 3.4% of their income into a 529 college savings plan for each child instead. They had the ability, and the wherewithal, to start saving 15% of their income at age 22.

Source: Forbes November 28, 2016 13:07 UTC