Welcome to the 2013 Rockbridge 401(k) Challenge. This is the easiest competition you will ever face and will take less than 10 minutes to complete!
The challenge is simple, increase your employee 401(k) contributions by 2% or more and see if you actually notice the difference in your day-to-day life. Our guess is that you will not.
Although a 2% increase does not seem like much when it is withdrawn each paycheck, it can have a huge impact in retirement. For an individual making $50,000/year, the additional retirement savings in current dollars will be:
10 years until retirement – $14,200
20 years until retirement – $42,400
30 years until retirement – $94,700
(5% real return, 3% annual raises, 2% additional salary deferral)
Your future self will greatly thank you!
Other articles filed under Retirement
April 29, 2016
Lockheed Martin MST recently announced the upcoming Voluntary Layoff Program with the goal of reducing the divisional workforce by 1,500 employees. If you are considering retirement and are eligible for the Voluntary Layoff Program, it may make sense to deeply...
April 28, 2016
When evaluating a financial advisor, the most important factor is that they truly understand you as a person and your personal situation. At Rockbridge, we have a dedicated focus in working with clients that are employees of Lockheed Martin. Because...
April 14, 2016
Stock Markets After January’s rough start, stock markets bounced back nicely in March, bringing most numbers into the black for the quarter. Domestic Small Cap and International Developed Markets are the exception – down about 1.5% and 2%, respectively. Notice...
April 11, 2016
I will make the argument here: Most people would rather go to the dentist than get their estate documents (Living Will, Power of Attorney and Health Care Proxy) in order. Why? The dentist appointment usually only lasts an hour and...
April 7, 2016
“The three worst words of stock market advice: Trust Your Gut.” That was the headline of a recent article by Jason Zweig in The Wall Street Journal, reporting on a new academic study. Dr. Robert Shiller of Yale, who won...