If You Invested $161K in Apple 10 Years Ago, You Could Retire Today

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For many investors, Apple’s stock is the definition of “the one that got away.” Some of those who saw its potential during the company’s early days could have made millions in returns. Even during the past 10 years, Apple investors could have made significant profits as the stock’s value rose tenfold.

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So, how much Apple stock would someone need to have bought 10 years ago to be able to retire today?

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How Much Money Is Enough To Retire?

The first step to figuring out how much money you need to retire is to figure out how much you’ll have to spend yearly once you stop working. This is important, because that sum dictates how much you’ll need to withdraw from your savings every year during retirement.

The AARP recommends that retirees should assume they’ll need around 80% of their current income every year. This is because you’ll no longer have many of the costs associated with work, such as payroll taxes or 401(k) contributions.

Learn More: $2 Million in Retirement Savings: Here’s How Much You Could Withdraw Per Year

The 4% Rule

Once you know how much money you’ll need to withdraw from your retirement account, you can use something known as the 4% rule. This strategy says that retirees who invest in a portfolio consisting of 50% bonds and 50% stocks can withdraw 4% of their retirement funds annually, and they’ll be unlikely to run out of money during their lifetime.

This rule is good for getting a ballpark estimate, but you should always consult with a financial advisor before making such a serious financial decision. How much you need to save may depend on your specific expenses and assets. A financial advisor can help you calculate a retirement savings target based on your specific situation and risk tolerance.

Calculating Your Retirement Needs

So, how much would the average American need to be able to retire? According to the 2022 Census, the annual median income in the U.S. was $75,149. Adjusting for inflation, that would be $82,948 in 2024. Following the 80% recommendation, the average American should aim to withdraw $66,358 annually during retirement. Dividing this number by 4% provides an estimate of how much they should save for retirement:

  • $66,358 / 0.04 = $1,658,950

This means that the average American should be able to maintain their quality of life in retirement if they have about $1.7 million in savings.

How Much Has Apple Grown in the Past 10 Years?

As of market closing on March 28, 2024, the current price of Apple’s stock was $173.31. The stock has repeatedly gone above $190 within the past year, though it has never been able to break resistance at $200.

Ten years ago, at market close on March 28, 2014, Apple’s stock was trading at $16.85 per share. This means that $100,000 invested in Apple in March 2014 would be worth more than $1 million today.

How much would you need to have invested in Apple 10 years ago to retire today? Take the previous estimate of the retirement savings you would need based on the median U.S. income, and compare that with the 10-year return for Apple’s stock:

  • $16.85 / $173.31 * $1,658,950 = $161,290.79

This means that if you had invested $161,291 in Apple stock in 2014, you would now have enough to maintain the lifestyle of the average American in retirement.

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This article originally appeared on If You Invested $161K in Apple 10 Years Ago, You Could Retire Today

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