Would you retire from Amazon?

Amazon stock investment will determine whether your retirement dream will come true, depending on how much you initially invested. For example, an investment of $10,000 made in Amazon 10 years ago would be worth $85,250 today. However, this high return may not be sufficient for a comfortable retirement.

Fidelity's recommendation is that you should have accumulated at least eight times your salary by the age of 60 and ten times your salary by the age of 67. By the traditional retirement age of 65, at least nine times your salary should be targeted as savings.

The average annual income of full-time workers in America is estimated to be $62,192. Considering this data and Fidelity’s formula, it can be said that approximately $560,000 should be saved for retirement at the age of 65. However, most people fall significantly below this target. According to a Federal Reserve study, the average retirement savings of Americans aged 65 to 74 was determined to be $200,000 as of 2022.

When we combine these two figures, a more realistic retirement target has been set at $380,000. Thus, if you had considered investing in Amazon shares 10 years ago, it turns out you would need to invest about $45,000. In this case, you would have purchased 1,759 shares, and the current value of the shares would be approximately $383,725.

Another important detail to remember is that since Amazon does not pay dividends, the returns you obtain will be limited to the appreciation in the stock price.