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How Much Will Saving An Extra $1k Each Year Help You?

January 2022

Did you ever wonder what might result from such a small boost to your retirement saving effort, even in midlife? While there is no ready answer to this question thanks to the many variables inherent in financial markets and investment choices, some ballpark math offers an illustration of the potential upside.

Suppose you put $1,000 more per year to a retirement account that returns a hypothetical 8% each year. Across ten years, the extra $10,000 you contribute to that account would be expected to have a value of nearly $22,000. Across 20 years, your $20,000 of additional contributions could reach $46,610. Putting just a little more into your retirement account each year could boost your retirement assets. Keep in mind the hypothetical 8% return does not reflect any investment or combination of investments. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results.1  

1 - USA TODAY, December 17, 2021