MFP Financial Services, Inc.

How To Let Your Money Work For You, Not The Other Way Around

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.