collected by :Haron Adler
according to In 2018, employees can contribute up to $18,500, or $24,500 if you're age 50 or older, to a 401(k) or 403(b) plan. If you can't contribute that much money immediately, see if your plan offers automatic escalation, a feature that increases your contribution rate every year. Automatically increasing your contribution rate can be easier on your budget and it can pay off handsomely. For example, a 30-year old earning $40,000 per year, who contributes 3% of income, and earns a 6% return annually, would wind up with a nest egg worth $133,721 at age 65. Increase that contribution rate to 10%, and that portfolio would be worth $445,734 at 65.

according to In 2018, employees can contribute up to $18,500, or $24,500 if you're age 50 or older, to a 401(k) or 403(b) plan. If you can't contribute that much money immediately, see if your plan offers automatic escalation, a feature that increases your contribution rate every year. Automatically increasing your contribution rate can be easier on your budget and it can pay off handsomely. For example, a 30-year old earning $40,000 per year, who contributes 3% of income, and earns a 6% return annually, would wind up with a nest egg worth $133,721 at age 65. Increase that contribution rate to 10%, and that portfolio would be worth $445,734 at 65.
Comments
Post a Comment