Page 47 - Book2E

The total investment over a 40-year period is $120,000 but because of the compounding of interest, you make over $170,100. The result is more than double your initial investment.
IRA Growth Over Time
Keep Your House in Order
Once you’ve started on the road to a financially healthy retirement, make sure you stay on track. Like most things, your finances can get a little dusty if they’re not shaken out regularly. Review them on an annual basis so you can make adjustments where necessary to ensure you reach your goals.
• Interest rates change all the time,
so don’t assume the rates you have currently are the best ones available. Visit www.bankrate.com to compare.
• Check on your 401(k) investments and make sure the allocation you’ve made is giving you the best return on your investment.
• See if you can make any additional contributions to your IRA and take full advantage
of the pre-tax savings.
A basic estate plan includes a will, an assignment of power of attorney, medical power of attorney, and a trust. If you don’t have a will, make sure you get one. You can visit www.nolo.com for basic legal help. If you own a home or a business, you may want to hire a lawyer to handle the paperwork. It will cost $500 to $1000 to do this, but the money that will be saved for your estate will be worth it.
Age 25 35 45 55 65 Return $3,000 $36,100 $90,000 $170,350 $290,100
Retirement: Are You an Ant or a Grasshopper? 39