The Importance of Contributing Early

It is amazing to note when auditing retirement plans how frequently we see that many employees either do not contribute to their plans or contribute less than $50 dollars per month. 

One of the most important things participants can do is contribute to their plans early! If you wonder why this is true, here is an example for you:

A contribution of $100 per month for any 40-year period will turn into more than $700,000 (at 11% average).  However, if the employee waits 10 years to start contributing, this amount would only be $265,000 - less than half of what could’ve been earned over a 40-year time frame!  Further – if the employee turns that same contribution over forty years into $500 instead of $100 each month, the account balance grows to over $3.5 million! These numbers can be staggering when you think about what you are leaving on the table by not participating in your own retirement plan.  Many employees are not aware of how crucial contributing early is to their plans or how much of a difference a 10 year start can make in their retirement future. 

Sign Up for E-News

If companies simply educated their employees on how important it is to begin contributing early, it could make a huge difference 30 or 40 years down the road.  In addition, once time is lost, it can never be completely recovered.  Even excess contributions in the future will not make up for years of lost interest on a participant’s account balance. 

Companies that truly care about their employees want them to have a successful retirement. That means they should offer educational tools to the staff throughout the year as well as offering incentives to get them to enroll in the plan early and contribute as much as possible! 

This column will provide business advice and new  perspectives on business news, emerging trends and traditional topics impacting individuals, family businesses and professional service providers across the tri-state area.

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Livingston

Free Class at CylcleBar Livingston to Support Sustainability

June 22, 2018

LIVINGSTON, NJ — Join us at CycleBar Livingston for Uplift Humanity's first charity event! In addition to getting your sweat on for FREE, you can learn about about how we are using a sustainability-first approach to solve poverty in developing countries around the world. Meet our Board and Founder and get information on volunteer opportunities.

We've partnered with ...

Deegan Dental Implant Special!

WEST ORANGE, NJ - OUR NEW DENTAL IMPLANT SPECIAL OFFER WILL GIVE YOU REASON TO SMILE!

Deegan Dental is happy to announce our New Dental Implant Special Offer that will give you a reason to smile! Our New Special Offer, that expires 11/30/2018, covers a single Complete Tooth Replacement (including the Implant, Stock Abutment and E-max Crown) for only $2,200 per Implant; a Great Value ...

Upcoming Events

Carousel_image_5e177eaae57739064cd4_397f63ad2fb50392a776_29178074_2107642336134787_2638697507160326144_n

Sun, June 24, 11:00 AM

Totowa

MakerFest 2018

Tue, July 17, 7:00 PM

Livingston Public Library, Livingston

Organically Yours: a wellness experience with ...

Former Jefferson School (Maplewood) Staffer Facing Criminal Charges For Alleged Lewd Photos of Students

June 22, 2018

MAPLEWOOD, NJ - A former Jefferson Elementary School paraprofessional has been charged with criminal behavior believed to be related to lewd photos of students at the school that were found on his cell phone after he was arrested in Morris County on an unrelated sexual charge.

It also appears that South Orange Maplewood School District officials knew about the arrests as early as ...

Livingston’s Electronics and Paper Shredding Event: Sunday, June 24

June 21, 2018

LIVINGSTON, NJ - The Township of Livingston is holding an Electronics Recycling and Paper Shredding Event on Sunday, June 24. Livingston residents may take their electronics and confidential papers to the rear and side parking lots of the Senior/Community Center at 204 Hillside Ave. from 9 a.m. to 2 p.m.  

Under the Township’s recycling ordinance and New Jersey state law, it is ...

My So-Called Graduation

The last of my children graduated from high school.  

 

My son and daughter threw their caps high into the air and cheered their liberation from one symbolic institution before contemplating their matriculation into other, much larger institutions significantly further away.  

 

Or at least far enough away that they won’t be needing rides home from ...

Cool Ways to Save Money This Summer

As the summer temperatures rise, home cooling costs rise as well. But there are ways to help save money without sweating the heat:

To increase your cooling system’s efficiency by as much as 20%, get it checked out for summer.  A technician will clean the condenser, make sure you have the optimal amount of refrigerant, and ensure the airflow over the coil is ...