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Although a 2% increase does not seem like much when it is withdrawn each paycheck, it can have a huge impact in retirement.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
September 1, 2016
It’s no surprise that this year’s U.S. presidential race has become a subject of conversation around the globe. In “Why Our Social Feeds are Full of Politics,” Canadian digital marketing executive Tara Hunt observes, “American politics, it seems, makes for...
August 19, 2016
We all know the importance of getting your finances in order and creating a financial plan when you are on the brink of retirement. However, creating a “leisure plan” can be just as important to a successful retirement. This recent...
July 20, 2016
Stock Markets Just look at the short-term variability in the various equity indices shown in the accompanying chart. It shows how markets behave through time – some markets are up substantially while others are down. Of course, this variability is...
July 18, 2016
Although our name is Rockbridge Investment Management, there are many services that we provide to our clients beyond managing investments. We wanted to share just a few of these additional skills with our clients. General Questions We are here for...
July 14, 2016
The recent vote in Britain to exit the European Union is yet another reminder of how markets often react negatively to surprises. We cannot help but ask ourselves, “Is it different this time? Maybe this is the event that upends...