Page 33 - The EDGE Winter 2024 WEB

Here’s an example of how compounding can make a big difference as you’re saving for retirement. If you were to
assume that your investments earn 8% annually, and you invested $2,000 a year (about $167/month) from age 25
to 35 ($20,000 total) and then stopped completely, you could accumulate $315,000 by age 65. But if you waited
until age 35 and invested $2,000 a year for 30 years (for a total of $60,000), you could accumulate just $245,000
by age 65. 2

Thanks to the power of compound interest, every dollar you put in has the potential to grow. Start investing as
early as you can to help put you on the path to financial independence.

READY TO TAKE THE NEXT STEP? HERE ARE A FEW TIPS ON HOW TO GET STARTED
The key to getting started on saving for retirement is to think of it as another basic expense in your budget. Don't
look for savings in what's left over after spending; often there isn't any. Instead, make saving a priority by thinking
of it as another bill you need to pay – to your future self. By treating your savings deposits like rent payments and
putting aside a set amount each month (or even each week), you can create a savings habit that will put you on the
path toward financial security. Over time, even small amounts can make a big difference.

If your plan allows, make your 403(b) contributions automatic each month. Your contribution will automatically
be deducted from your paycheck, taking the work out of it for you and making it easy to manage your personal
budget.

While it’s never too late to start saving for retirement, getting an early start can give your investments more time
to grow and with the benefits of compounding, you’ll be well on your way to creating the future you want – and
a retirement you’ll love.

Fred Makonnen, Head of Group Retirement Distribution of Equitable can be contacted at: Fred.Makonnen@equitable.com

1
Based on 2019 federal tax tables, assuming married filing jointly (source:www.irs.gov). Figures do not take into account any
other sources of income, state or local income taxes, tax credits or deductions.
2
These hypothetical examples assume an 8% annual interest rate compounded monthly. Hypothetical results are for illustrative
purposes only and are not indicative of the performance of any particular investment or financial product. Your results will vary.

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