This Retirement Move Popular With 14% of Americans Will Pay Dividends Later
What if I told you there was an easy way to add nearly $50,000 to your retirement savings and it would only cost you $42 per month? Well, that's exactly what can happen if you raise your deferral percentage on your retirement account -- a move 14% of Americans have already made this year, according to a Principal study. Below, we'll take a look at why this makes such a difference for your retirement and where you can find the extra cash to make it happen.
You don't have to raise your contributions that significantly to see a noticeable difference in your retirement account balance. If you earn $50,000 per year and put 9%, or about $375 per month, away for retirement every month for 30 years, you'd end up with over $438,500, assuming you earned a 7% average annual rate of return.
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Source Fool.com
