The Power of the 1% Contribution

Hey, I’m Jonathon Schultheiss.

We miss meeting with you in person and we’ve had to come up with unique ways to continue to communicate with you on your retirement plan.

So the real question is, how do you become a 401k or 403b Superhero to your future self?

That is the question and these videos will give you the answers.

I’m Jonathon Schultheiss and welcome to the becoming a 401k superhero videos.

Today I want to tell you about a meeting I had with a 401k participant. We were meeting in a conference room at his employers.

I can remember it like it was yesterday. He came in and sit down for the meeting and looking over at me and said, I can’t wait until I can retire.

I laughed a little as we pulled up his 401k account. We stared to talk about his account, I found that he was 52 years old, he made $40,0000 a year and he had saved $50,000 for retirement.

You see, at first it looked like there was no way this participant would be able to retire any time soon. I even joked with him and said, how long would like to retire, you have one year’s income here.

He didn’t think that was very funny.

I remember thinking, I have to share something valuable with him. I need to find a way that he can retire.

That’s when I remembered that I had a software tool that could illustrate making annual increases in his retirement savings.

I ran his number to show him that if he would increase his saving to his 401k plan each year by as little as 1%, he was projected to be able to retire in 15 years and be able to replace 80% of his income.

That 1% increase would only cost him $7.70 each week. That means that every year, he would increase the amount that he is saving by only an additional $7.70 a week. That’s almost the cost of eating out once a week.

You see, that small $7 increase was what helped this participant become a 401k superhero to his future self. That small $7 is what would allow him to be able to retire.

This is the power of making just a small 1% increase in your retirement savings each year. That 1% could be the difference of retiring and not retiring.

Have questions about your retirement? Reach out and let us see how we can help you become a 401k superhero to your future self.