Finance Friday: $100/Month Today = $200/Month of Income at Retirement

Sometimes it’s hard to envision how much, if any, saving an extra $50 or $100 regularly for retirement really benefits you. So to help motivate you to save more and save often, here’s a simple illustration showing about a 2:1 ratio of future retirement income to current retirement savings.

This example assumes saving for 20 years with a 5% average annual return and current, really low interest rates. Your results will no doubt be different based on your circumstances. But the math here should give you a general sense of why saving more now pays off. Doubling your money for retirement income is a great way to maximize your retirement readiness!

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About Mike Wilson

Michael L. Wilson, MBA, CFP®, CRC®, is the owner of Integrity Financial Planning. Prior to founding Integrity in 1998, he worked for two years as a faculty member at the College for Financial Planning in Denver, training other financial advisors. Mike has 10 years of experience in the mutual fund industry, having worked with Fidelity Investments and Invesco Mutual Funds. He holds an MBA in Finance from Baylor University. Learn more about his work at www.integrityplanner.com.
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