If you've ever been to our office, then you're familiar with four magical words:
Time Value of Money
The quicker you begin saving money, the more time you give yourself to let your money grow. Follow these three couples on their financial journal to see real-world examples of this concept!
Scenario #1
The Johnson's are 55 and have 10 years until retirement. Combined they have:
-$100,000 in a Non-Retirement Investment Account
-$150,000 in their 401(k)
-Plan to contribute $20,000 for the next 10 years until retirement
Result: If invested at a fixed annual rate of return of 8%, the Johnson's would have accumulated $829,462
Scenario #2
The Miller's are 45 and have 20 years until retirement. Combined they have:
-$50,000 in a Non-Retirement Investment Account
-$75,000 in their 401(k)
-Plan to contribute $15,000 for the next 20 years until retirement
Result: If invested at a fixed annual rate of return of 8%, the Miller's would have accumulated $1,269,049
Scenario #3
The Robertson's are 35 and have 30 years until retirement. Combined they have:
-$20,000 in a Non-Retirement Investment Account
-$35,000 in their 401(k)
-Plan to contribute $10,000 for the next 30 years until retirement
Result: If invested at a fixed annual rate of return of 8%, the Robertson's would have accumulated $1,635,965
This hypothetical example is used for illustrative purposes only. Actual results will vary.
The examples above are not representative of any specific situation, or investment. The hypothetical rates of return used do not reflect the deduction of fees, and charges inherent to investing. Actual rates may vary.
The purchase of certain securities may be required to effect some of the strategies. Investing involves risk including possible loss of principal.