Retirement Plan Contribution Illustration
Increasing Retirement Plan Contributions Each Year Can Help Build a Bigger Nest Egg
The following charts illustrate the results of adhering to a systematic investment plan by making contributions to a retirement account. The first chart assumes a contribution of $100 per pay while the second chart assumes a $100 contribution per pay with yearly increases of $50 per pay.
This hypothetical illustration is intended to demonstrate contributing varied amounts to a retirement account and is not intended to illustrate the performance of an actual investment. This illustration is not an indication or guarantee of future performance. It shows constant rates of return, whereas actual rates may fluctuate. Taxes, fees and expenses have not been taken into consideration for the purpose of this illustration. Account values were obtained by using a nominal rate compounded monthly. Contributions are made at the beginning of the period. The principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. This illustration is based upon the assumption that annual contribution limits will increase under federal law, which cannot be guaranteed.