Time is your friend when it comes to saving for retirement. This is because of something called compound growth. When our investments earn a return, those returns are reinvested so they may continue to grow. Your savings are exponentially influenced by the amount of time they are invested. In other words, the longer you save, the better. Just look at the examples below.
Of course, being the “Consistent saver & investor” is the best-case scenario. However, these examples demonstrate how crucial it is to grant time for your savings to grow. As has often been said about investing, it’s not “timing the market,” but “time in the market” that is the key to success. Save what you can, as soon as you can, and allow time for compound growth to work for you.
At BerganKDV, our Retirement Plan Solutions (RPS) team helps employers navigate the intricacies of maintaining a compliant retirement plan while maximizing participation and managing investment options. We empower our clients with informational resources and training so both employers and their employees feel confident they are getting the most out of their plans.
If you have questions about what our RPS team can do for your retirement plan, contact us today and one of our advisors would be happy to assist you. Let’s talk!
Graphic source: J.P. Morgan Asset Management, Long-Term Capital Market Assumptions. Individual is assumed to retire at the end of age 65. Growth of portfolio is tax deferred; ending portfolio may be subject to tax. The above example is for illustrative purposes only and not indicative of any investment.
Adapted from RPAG, ACR#5605889 04/23.
