In your early working years, retirement might be the last thing on your mind. You’re likely focused on jump-starting your career, handling bills, paying off student loans and managing other expenses. However, delaying your contributions can significantly impact your retirement savings. Many clients regret not starting earlier—don’t let that be you!
Let’s consider three investors with an 8% growth rate who make a $500 deposit per month:
Investor A started contributing and investing early in their career, accumulating for 40 years. By retirement, Investor A had an account value of $1.76 million.
Investor B started contributing and investing towards the middle of their career, accumulating for 30 years. By retirement, Investor B had an account value of $750,000.
Investor C started contributing and investing later in their career, accumulating for 20 years. By retirement, Investor C had an account value of $296,000.
Starting early can make a significant difference in your retirement savings. Don’t wait!
Kovitz Investment Group Partners, LLC (“Kovitz”) is an investment adviser registered with the Securities and Exchange Commission. This report should only be considered as a tool in any investment decision and should not be used by itself to make investment decisions. Opinions expressed are only our current opinions or our opinions on the posting date. Any graphs, data, or information in this publication are considered reliably sourced, but no representation is made that it is accurate or complete and should not be relied upon as such. This information is subject to change without notice at any time, based on market and other conditions. Past performance is not indicative of future results, which may vary.
