The sooner you start saving, the more money you may have for retirement. The momentum you build by starting early allows you to maximize the advantages of compounding interest. Consider setting up automatic transfers to make it easy for you to stay consistent about saving for retirement.
Put the power of compound interest to work for you. Even $1 saved today, instead of 10 years from now, can make a difference to your retirement savings.
At right is an example of two individuals who set aside $200 a month in their workplace 401(k), each earning an average 7% rate of return on investments. The individual who started at age 25 has more than double the retirement savings at age 65! This example assumes no withdrawals or fees which would reduce the return. It is important to remember that investing involves risk, including potential for loss of principal invested.
Contribute enough to your company 401(k) to take advantage of the typical 2-5% employer match.
Try the Expense Worksheet to sort out necessary vs. discretionary expenses.
It's easy to set up automatic monthly transfers to your savings account. Having sufficient cash reserves helps you avoid dipping into your retirement savings when emergencies occur.
Review interest rates carefully, pay off high-interest credit cards first, and make sure you’re not over committing.
An Individual Retirement Account (IRA) can be a smart option if your employer doesn’t offer a 401(k). Learn more about IRAs
Focus on the cornerstone of asset growth, as you strive to build your retirement fund. Consider enrolling in your workplace retirement plan, if you have one, and contribute the maximum amount your employer will match. Play defense, too—have appropriate insurance coverage and be prepared for life’s unexpected events. Learn about the cornerstones of retirement planning
Work with U.S. Bank
Bankers can help you create a plan to save for retirement. Find a Branch
U.S. Bancorp Investments Financial Consultants can help. Call 800-871-6250 or have us contact you
If you have more complex financial needs, we offer comprehensive wealth management advice and services. Learn more
Investment and insurance products are:
Not a Deposit • Not FDIC Insured • May Lose Value • Not Bank Guaranteed • Not insured by any Federal Government Agency