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Financial Fitness Blog

You don't need to save a lot to get ahead, but start you must

(Retirement) Permanent link   All Posts

Michelle Blog PhotoA comfortable retirement is an expensive proposition. But you might be surprised to learn that saving with as little as $20 per pay period can make a difference.

It's ok to start with a small amount, as long as you start. And, the sooner the better.

The importance of saving early is illustrated clearly in our story of Jack and Jill. Jill starts contributing soon after starting her first job and reaps the benefits of compounding interest. Jack procrastinates and will need to contribute much more to catch up with Jill's account balance in retirement. Compounding is when earnings on your investments are reinvested in your account. The reinvested earnings may also have earnings, and then those earnings are reinvested and so on. It’s said that Albert Einstein called compound interest the "eighth wonder of the world." Any small amount you can start contributing now could benefit you more than larger amounts you contribute later on because of compounding.

If your retirement savings account is up and running, work toward contributing the maximum amount possible. Use our paycheck comparison calculator to help you determine the impact of changing your retirement savings payroll deductions.

You can open a 403(b) or IRA with automatic contributions of just $20 per pay period. No large amount is required like with many other providers. Plus, our fees are among the lowest around so more of your money is working for you. Remember, family members, like your spouse/domestic partner, children and their spouses, parents, and parents-in-law are also eligible to open an IRA account. (Wisconsin residency required.)

Michelle Slawny, CFP®

The 403(b) retirement program is offered by the WEA TSA Trust. TSA program securities offered through WEA Investment Services, Inc., member FINRA. The Trustee Custodian for the WEAC IRA accounts is Newport Trust Company. This article is for informational purposes only and not intended to be legal or tax advice. Consult your tax advisor or attorney before taking any action.