Eliminate
Few people have exactly the amount they will need in retirement. Most will get a negative figure—a gap—when they do the math.
If you find yourself in that boat, the good news is that time is on your side. Remember the effect of interest compounding and how it can work to make your money grow in 10 years.
The "Miracle" of Compounding:
Adding $200 a month, or $2,400 a year over 10 years, to a starting retirement savings balance of $40,000 would more than double your money*
| Year | Start of Year | Add | Rate | Year End |
| 1 | $40,000.00 | $200/month | 5% | $44,512.50 |
| 2 | $44,512.50 | $200/month | 5% | $49,255.80 |
| 3 | $49,255.80 | $200/month | 5% | $54,241.90 |
| 4 | $54,241.90 | $200/month | 5% | $59,483.00 |
| 5 | $59,483.00 | $200/month | 5% | $64,992.30 |
| 6 | $64,992.30 | $200/month | 5% | $70,783.40 |
| 7 | $70,783.40 | $200/month | 5% | $76,870.80 |
| 8 | $76,870.80 | $200/month | 5% | $83,269.70 |
| 9 | $83,269.70 | $200/month | 5% | $89,995.90 |
| 10 | $89,995.90 | $200/month | 5% | $97,066.20 |
*assumes a 5% rate of return and all earnings reinvested.
Source: Taking the Mystery Out of Retirement Planning. U.S. Department of Labor. September 2006.
But where will you come up with the additional savings to close the gap? When every dollar seems accounted for, how are you supposed to save for the long-term?
We’ve drawn on our banking background to identify the most underutilized savings strategies. Our goal is to free up existing cash flow through debt consolidation and enhanced tax efficiency. To learn more about our debt restructuring strategies, follow the link below:
ManuLife One Introduction
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Mutual Funds Provided through FundEX Investments Inc.