What a crazy week! We have had some very intense weather this month here in West-Central Iowa, mainly tornados and a lot of rain. Many areas of the country are seeing similar weather patterns. It is May 27th when I’m writing this, and we have already received just shy of eight inches of rain and more rain is forecasted throughout the remainder of the month. We ended last year in a drought, but I’m sure we are all caught up now. The farmers who already got their corn and beans planted are happy about that. The ones who are not finished planting are left waiting for a break so the ground can dry enough to plant.
Many of the farmers who already planted, planted early, which means they took the risk of frost killing their seedlings. This year, since we did not have a late frost, that risk is paying off. Getting the crops planted earlier gives a longer growing season, which can increase yields.
That extra time is a lot like saving for retirement. The earlier one plants the dollars into retirement savings, the greater the yield will be when it’s time to harvest. Let me show you how that works.
Let’s say a family saved 15% of their monthly gross income and earned an 11% rate of return. To give perspective, let’s say the household income is $70,000 per year, that would be a savings of $875 per month.
Check out how planting early works with compound interest to increase your returns over 20, 30 and 40 years!
| Monthly Contribution | 20 Years | 30 Years | 40 Years |
| $600 | $519,382 | $1,682,711 | $5,160,076 |
| $700 | $605,946 | $1,963,163 | $6,020,088 |
| $800 | $692,510 | $2,243,615 | $6,880,101 |
| $900 | $779,074 | $2,524,067 | $7,740,114 |
Isn’t giving your investments more time a beautiful thing?
Whether you have 40 years of working years ahead of you or not, now is the time to start saving for retirement. Schedule a free consultation with me at luckinbillfinancial.com.
