Start Saving Early
Chart of the Week for July 13 - July 19, 2007
Contributing to your retirement account early can accelerate progress toward your retirement goals. The power of compounding over just an additional 10 years can make a significant difference over time.
The chart above assumes annual contributions of $4,000 and an average annual return of 7%. If you begin saving when you are 30 years old and plan on retiring when you are 65 years old, annual contributions of $4,000 will lead to a balance in excess of $637,000 when you retire 35 years down the road. On the other hand, if you wait an additional 10 years and start saving when you are 40 years old, your account balance when you retire at 65 years old will be just under $294,000, less than half of what you would have if you started saving 10 years earlier.
In this example, beginning to contribute to your retirement account when you are 30 years old instead of 40 years old increases your ending balance by over $340,000. Starting to save early can make a significant impact in the long-run.
*This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.Please consult both the current applicable prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks and performance information. Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested. Investors should consider the Fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing. All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a current prospectus, contact ICMA-RC Services, LLC.The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 1-800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.
To contact ICMA-RC Services, LLC, ICMA-RC, or any of its affiliates call 800-669-7400 (TDD: 800-669-7471) or write to 777 North Capitol Street, NE, Washington, DC 20002-4240. You may also visit us on the Web at www.icmarc.org.. Para asistencia en Español llame al 800-669-8216.