Saving and investing for a retirement that’s many years in the future isn’t a short trip across town. Instead, it’s a long haul from coast to coast. You’re going to encounter plenty of rough stretches that could test your resolve. Sticking with your long-term strategy can help you achieve a comfortable retirement.
Stay on Your Route
As a long-term investor, you’re in a good position to ride out any stock market volatility. Although past performance is no guarantee of future results, the stock market has eventually recovered from every downturn. If you’re enrolled in the MERS Defined Contribution Plan, 457 Program or Health Care Savings Program and looking for a hands-off investment strategy, consider investing in the MERS Retirement Strategies funds. These fully diversified, professionally managed funds are a simplified way to invest and automatically adjust over time as you get closer to retirement.
Keep On Truckin’
Participating in a supplemental savings plan such as the MERS 457 Program, even during unfavorable economic conditions, may help you reach your retirement savings goal. Over time, contributing at a steady pace may be more effective than stopping and starting contributions based on market performance.
Push the Pedal to the Metal
Consider increasing the amount you contribute to your retirement savings account. Even a small increase can have a significant impact on your account balance when you retire. And the sooner you start contributing more, the better, since your balance will have more time to grow. Shifting into a higher savings gear may help you get to your financial destination by the time you retire.
Speeding Up the Savings
Over time, regular contributions to your retirement savings plan can add up significantly.
|Account Balance After:||20 Years||30 Years||40 Years|
|Weekly Pretax Contribution|
This is a hypothetical example used for illustrative purposes only. It is not representative of any particular investment vehicle. It assumes a 6% average annual total return, compounded monthly. Your investment results will be different. Tax-deferred amounts accumulated in the plan are taxable on withdrawal, unless they represent qualified Roth distributions.