Control Your Retirement

There are three main factors which contribute to the ultimate value of your retirement accumulation.

1) TIME – How much time do you have to accumulate funds?
2) AMOUNT – How much money is contributed over time?
3) INTEREST RATE – What interest rate is earned on the accumulated funds?

Obviously, all three of these factors have a direct impact on your ultimate accumulated value? However, almost all financial institutions focus on the rate of return that their respective investment can earn. While this is certainly important, the reality is that we, as individuals, and even the financial institution, can not always control exactly what interest rate any single program can achieve. On the other hand, the one thing we completely control is the AMOUNT of money we set aside for retirement.

In the illustration below, note how the amount and time can have just as much impact on future accumulations as the interest rate achieved.

$500 per month at 8% for 20 years = $294,102
$600 per month at 7% for 20 years = $312,555
$600 per month at 6% for 21 years = $342,586

By increasing the amount by just $100 more per month, even at 1% less interest provides 6% MORE in account value.

AND

By increasing the amount by just $100 more per month for one more year at 1% less interest provides 16% in account value.