- Time Value of Money
- The Power of Compound Interest
- Dollar-Cost Averaging
- Pre-tax, After-Tax, Tax-Deferred, and Tax-Free
- The Effects of Inflation
The following table shows why compound interest is such a great thing. Saving $50 a month earning a 6% rate of return, can give you a nest egg of $23,200 in twenty years. And in thirty years it can give you $50,500. Not bad for $50 a month.
The Beauty of Compound Interest*
|
Monthly Savings |
In 15 Years** |
In 20 Years** |
In 30 Years** |
In 35 Years** |
|
$10 ($120/yr.) |
$2,900 |
$4,600 |
$10,000 |
$14,200 |
|
$50 ($600/yr.) |
$14,500 |
$23,100 |
$50,200 |
$71,200 |
|
$100 ($1,200/yr.) |
$29,100 |
$46,200 |
$100,500 |
$142,500 |
* Calculations made from a standard Time Value of Money table.
** Assumes a 6% rate of return.
Still think you're too young to start saving for retirement? If you are 35 years old and save just $2,000 per year from now until age 65, at a 6% rate of return, you'll have almost $167,400. But, if you wait until you are 55 to start saving, you will have to save approximately $15,600 per year at 6% to give you $213,000 at age 65. It's better to start smaller and earlier, and keep it up.
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- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
