Saving for Retirement

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October 5, 2018
Saving for Retirement

Image Copyright Ted Grussing Photography – Used with permission

Saving for retirement is not easy and can be a stressful process if you’re not sure you are putting back enough.

Today we would like to offer you one very simple idea to add to the amount you are already contributing. In the long run, this could boost your retirement account by thousands of dollars.

Consider this tip through this example:

Say there is an individual who earns $70K a year, and this person saves 4% of that each year into their retirement account. (This example assumes the account earns an average of 7% annual rate of return for 30 years.) At the end of 30 years the retirement account could have grown to $283,000!

However, if this person just increases their contribution by about $58.00 a month or about $14.50 per week to their retirement plan, their end game balance has increased by $71,000 in the same 30 years! That may not seem like a lot initially, but when the day comes for your retirement it will be easy to be grateful for that additional $71,000!

In many of our weekly budgets, we easily spend $14.50 a week on one meal out. Wouldn’t you gladly give that to your 401k for $71,000 more in retirement?!

If you are currently saving for retirement, consider giving something up in your budget to put back just a little more towards your future. Most of us can squeeze another small amount of funds out each week into our retirement accounts.

Increasing the amount you contribute by even a small bit pays big returns for the future!

Have a great weekend!