American retirees aged 65 to 74 have a median nest egg of $409,900, according to the Federal Reserve, significantly below the $1 million benchmark many aim for by retirement age. This shortfall is attributed to insufficient investment in growth-oriented assets; over the past 30 years, the S&P 500 achieved an average annual return of 10.5%, projecting a $100,000 investment to potentially grow to $1.2 million.
To improve retirement savings, financial experts recommend investing in stocks. For instance, Cloudflare, which went public in 2019, boasts a revenue CAGR of 46% from 2019 to 2023 and is projected to achieve a CAGR of 28% from 2023 to 2026. MicroStrategy holds 226,500 Bitcoins valued at approximately $12.9 billion, which constitutes nearly half of its enterprise value of $28 billion. Lastly, Arm Holdings, a UK chip designer, anticipates a revenue CAGR of 23% from fiscal 2024 to fiscal 2027, driven by demand for AI and automotive chips.
