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Although a 2% increase does not seem like much when it is withdrawn each paycheck, it can have a huge impact in retirement.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
November 25, 2015
There is an endless amount of terminology that surrounds the finance and investment industries. It can certainly be confusing to the average investor, and may be responsible for some uncertainty when it comes to how to invest and which advisor...
November 20, 2015
Recently, Congress included surprising Social Security rule changes in the 2016 budget legislation. The bill has now become law and the updated rules will become permanent over a phase-in time period. We wanted to reach out to all of our...
November 16, 2015
The holidays are right around the corner, and it’s time to start thinking about gift shopping, parties, and all the other spending that goes along with them. It’s nothing new that the holidays are expensive. However, it is important to...
November 3, 2015
Last week, Congress passed their “Bipartisan Budget Act of 2015.” Among the typical budgetary items, there are a few alterations that will impact the Social Security benefit filing system. Anyone who turns 62 in 2016 or later will no longer...
November 2, 2015
In this recent WSJ article, they talk about the how smart phone "investment apps" are causing investors to react to short-term market swings and abandoning their long-term established financial plans. Behavioral economists call this tendency, "myopic loss aversion"- and it can...