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Home > Planning For... > Your Investments > Increase Your Investment Commitment
 You work hard not just to meet your needs for today, but to build a more secure future. Ask yourself this question — are you doing as much as you can now for a solid retirement? You can build the retirement you've always wanted, if you take charge of two important steps that only you can control:
- If you haven't already, begin a retirement investment plan today.
- If you're already investing, consider increasing your contributions.
Time can be your greatest ally
It's easy to put off the decision to invest for the future. In an age where we often seek instant gratification, investing for retirement doesn't always seem to fit in. After all, it takes time and patience to see the results of your efforts.
Time can be one of your greatest allies as an investor. Consider the example
of two different people — Lynn, who began investing $100 each month at age
25, and Pat, who invested the same amount, but who waited until age 35 to
begin. Even if they earn the same return, the difference that time makes
can be enormous!
By age 65, Lynn, the early investor, has accumulated $200,000 more in a retirement plan than Pat, the procrastinator, who waited an extra ten years to begin. As you can see, starting early can pay big dividends, giving the early investor the advantage.
Boosting your contribution
There's a good chance you've given thought to increasing your monthly retirement plan contribution. But once again, other "opportunities" (such as a new purchase) often get in the way of that effort. The fact is that investing more today can make a big difference in your future.
Again, compare our two investors, Lynn and Pat, in a different situation. Both want to retire in 25 years. Both contribute $100 per month to their retirement plan. To date, they both have accumulated $10,000 in their retirement plan. Today, they are on equal footing. But Lynn then decides to double her monthly contributions to $200. What impact will just that slight increase have down the road?
Again, the difference is significant. By investing a total of $30,000 more (an extra $100 per month for 25 years), Lynn, the dedicated investor, will end up with close to $100,000 more than Pat, the content saver. As you can see, investing more today can potentially make a big difference down the road.
Make the most of your opportunity today
If you haven't begun saving for retirement, can you afford to let more time slip away? Take a close look at your finances to see where you could trim your current expenses to allow more money to go into your retirement plan. The sooner you invest, and the more you put away, the farther ahead you'll potentially be when retirement day arrives!
Content is for informational purposes only and may not accurately reflect your specific situation. Information is not intended to provide financial, legal, tax, or accounting advice. You should consult a qualified advisor for advice specific to your own circumstances.
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