Save Now to Pay Your Future Self Later
$100: Monthly 401(k) contributions needed starting at college graduation to yield $225,000 by age 65 (assuming 6% return)
Most people know the phrase "the early bird gets the worm," and this phrase has never been truer when it comes to your retirement savings. If you start saving early enough, even a seemingly modest monthly contribution can grow significantly over the years. Ever year you wait costs your retirement savings account more and more.
For recent college graduates just entering the workforce, there's no better time than now to get a head start. A contribution of just $100 a month starting now, at age 22, can yield over $225,000 at age 65 assuming a pretty conservative return (for example, 6%). If you put off saving for just one year, that total shrinks to $211,000. That's $14,000 of future income not worth losing.
No matter where you are in your life path, it's never too late – or too early to start saving. Learn about the actions you can take right now to navigate the new world of retirement.
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