Let look at an example of two retirement savers. Bob is 24 years old and chooses to invest $250 per month until he retires at the age of 65. At the age of 24, Sue decides to delay saving until she was 40 and would save $500 per month until she retired at the age of 65. Through the power of diligent savings and earning a 6% annual rate of return on a compound basis, both build respectable retirement savings accounts.
Despite Sue savings twice as much as Bob, Bob wins the retirement savings race with a $531,664 ending balance. Sue’s ending balance is $346,497. Bob gained the benefit of a slow and steady savings approach along with the power of his earnings compounded upon themselves for a longer period of time than Sue.
He amassed over 53% greater savings than Sue when they each retired at 65.
Do you want more money for your retirement?
Get your free consultation now. We can show you how to make your golden years filled with a little more gold.
This consultation comes with no obligation. We show you how to enrich your retirement but you are not required to buy anything. We respect your privacy and will never share your information with anyone else. |
Leave A Comment
You must be logged in to post a comment.