When it comes to saving, you need to let time work its magic. Consider the example
This is a hypothetical illustration only, assuming annual 5% tax-deferred monthly compound rate of return. There is no guarantee that the results shown will be achieved, and the 5% assumption may not be reflective of your portfolio investments. Taxes are due upon withdrawal.
What can you take away from this example?
- Time is on your side. Time gives your savings the opportunity to grow and keep on growing. Compound returns include the growth on your contributions as well as the growth earned on those assets. This compounding can go a long way toward helping you reach your retirement goals.
- Start early. The longer you let your money work for you, the more you can have in the end. On the flip side, the longer you put off saving for retirement, the harder it can become to reach your goals.
Don’t delay. Start saving today! Try out Manulife’s tool and see how much compounding can help your savings grow.