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Your 401(k) is one of the most effective tools available to help with retirement planning. This calculator lets you explore five strategies to enhance the growth of your 401(k). Each strategy on its own can make a significant impact on your 401(k) but combining all five strategies has an even greater impact.
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1. Increase your annual contribution
The best growth in your 401(k) will be achieved when you contribute as much as possible in each of your working years.
2. Contribute early in the year
Your 401(k) will grow to a larger value simply by changing the time of year when you contribute.
3. Start contributing early in life
Contributing early in your career, even if you start with smaller contributions, is one of the best ways to grow your 401(k).
4. Contribute longer by retiring later
Retiring later, even by a few years, can add extra contributions and growth to your 401(k).
5. Earn a higher rate of return
Earning a higher rate of return, even by 1% or 2%, can make a dramatic difference over the long term. Stay within your risk tolerance level when seeking investments with higher returns.
Use the calculator to explore these five strategies: increase your annual 401(k) contributions, contribute earlier in the year, start contributing early in life, contribute longer by retiring later and earn a higher rate of return.