Why Regular Contributions Matter


Regular contributions are a powerful tool for building up retirement savings, one piece at a time. Add in the power of compounding and your savings can grow that much more quickly.

Consider co-workers Tony, Jay, and Sam. Tony decides he'll have $10 a month put into his employer's retirement savings plan through payroll deduction. Jay goes for $15 a month, and Sam chooses $20 a month. Each of their accounts earn a 6% annual rate of return. Look at the difference in their account balances at the end of each decade of savings.

To get a better idea on how time and savings rates can affect your specific situation, click here for our Savings Goals calculator.

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