In my last Blog about 'Developing a Savings Ethic', I encouraged one to start savings and investing in their 401K or IRA. Soon, that will become easier and more accessible for many working Americans.
https://araadvocacy.org/wp-content/uploads/2022/11/110922-ARA-Secure20-ClosingGap-v7.pdf
The above link address is for the proposed Secure Act 2.0 white paper, Which, when passed, could provide up to a proposed $2000 per year in matching contributions to a workers 401K or retirement plan as an incentive to save in their plan. For most lower and Middle income workers this will be a HUGE incentive to begin saving and continue saving for a more profitable and secure retirement.
The Below picture shows that if one contributed $2000 every year end from age 25 to 65, age 20 to 60, or age 30 to 70, and received a $2000 matching contribution, received a moderate 5% annual compound return, the person would have over one half million dollars as a retirement savings income supplement. Continuing to receive 5% annually would result in $25,000.00 per year in income for life without ever spending the principal. That forever sum of money would leave a $500,000 legacy for whoever or whatever you choose.
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The above is an example of what is probable. For what is possible... If the match were at 50% that would mean the savings contribution would have to be $4000 each year to get the $2000 match. The End Balance would be over $750,000. If the Rate of Return of the $4000 savings and $2000 match is increased to 6% compounded annually the End Balance would be almost $1 Million.
All the above is another example of starting a saving and investment plan. Continuing it for a lifetime is the combination to achieve financial success.
We are available to help you achieve your goals and dreams. What do you want to do?