Plan today for a brighter tomorrow
For some people, retirement may seem a lifetime away. But, if you postpone your savings for retirement, it may be difficult to make up for lost time. Saving for your future in a tax-deferred retirement savings plan reduces your taxable income and helps accelerate your savings. Every dollar you contribute to your tax-deferred retirement savings plan account is deducted from your salary before taxes are taken out. In addition, the money in your plan has the potential to grow tax-free until you withdraw it.
The importance of starting early
The need to start saving as early as possible is demonstrated by the following example: At age 21, Anne and Tracy were hired for similar jobs at the same salary. Anne immediately began investing $30 per week. After 14 years, Anne stopped contributing, but left the money in her plan to grow for the next 30 years. By contrast, Tracy did not begin investing $30 per week until age 35, but did so for the next 30 years. Although Tracy invested twice as much overall, Anne accumulated nearly twice as much as Tracy at retirement because she started saving early.
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