The Price of Procrastination – Saving for Retirement

You may give up thousands of future dollars for every year you delay starting a tax-deferred retirement plan. Here’s why: Every year that you wait you are paying more in income taxes. And, every dollar lost to taxes is a dollar that cannot be used to help increase your future financial security.

More importantly, every year that you postpone establishing a plan represents a lost annual contribution—and every year of delay costs you a year’s worth of tax-deferred growth. The combination of lost contributions and lost tax-deferred earnings can be enormous.

A Case in Point
Suppose the following facts are true:

Your present age:	43
Assumed annual contribution:	$15,000
Annual return:	9%
Your retirement age:	65
Number of years for payout:	20
Years you delay your plan:	2

Results With a Delay Without a Delay The Cost of Delay Total Plan Contributions: $300,000 $330,000 $30,000 Earnings on Plan Assets: $536,468 $697,979 $161,511 Accumulation in 22 Yrs.: $836,468 $1,027,979 $191,511 Annual Retirement Income: $91,632 $112,611 $20,979 Total 20-Year Payout: $1,832,642 $2,252,230 $419,587

This is a hypothetical example for illustrative purposes only and does not represent the return of any specific product.