Here at Spotlight, we’re always happy for an excuse to talk to you about taking care of your financial future. So, in honor of April being National Financial Literacy Month, we present our top 4 quick simple tips for understanding compound interest and jumpstarting your savings.
Number Four:
To estimate how long it will take your savings to double, divide the number 72 by your investment’s earnings rate. So, if your investments are earning an 8 percent return, it will take 9 years for your money to double in value. (72 divided by 8 = 9)
Number Three:
For most employees, the 2014 contribution limit for your voluntary savings in your 403(b) is $17,500. But, if you’re over 50, you can generally put away $5,500 more. There are some limitations and caveats, so be sure to check into your own personal situation if you have any questions.
Number Two:
Pre-tax retirement savings and their earnings are subject to income taxes when you make a withdrawal. Roth savings are after tax contributions, and so your earnings accumulate tax free. Qualified withdrawals are tax free, too. In the new Lehigh Retirement Plan, you can choose either option or a combination of the two for your voluntary contributions.
And our Number ONE tip for dominating your retirement planning is:
It’s never too soon or too late to get your financial future mapped out. In this session, you’ll learn:
- The real effect of time on money,
- Why saving for your retirement is important, and how to plan,
- Differences between good and bad debt,
- How budgeting can help you find and save more money.
To Register for The Starting Line, send an email to inhro@lehigh.edu and include the following information:
- Your name
- Your Lehigh email address
- The name of the session for which you are registering
- The date and time of the program
And as an added bonus, you can earn Be Well points for attending this workshop! Just register for the challenge on the Be Well website.
For more Financial Literacy Month tips and quizzes, visit TIAA-CREF’s website.