8 Factors that Determine Your Final 401(k) Balance

I recently read a great article at usnews.com written by Emily Brandon. Please see below.

Your 401(k) balance on the eve of retirement obviously depends on how much you save over your working life and on the performance of your investments. But there are other factors that influence the size of your next egg, including how early you start saving and when you leave the workforce. Fees, expenses, and early 401(k) withdrawals can affect your investment returns as well. Here are eight factors that determine the final balance of your 401(k).

When you begin saving. Workers who start saving for retirement in their 20s and follow through often have the most impressive 401(k) balances. "The biggest influential factor is definitely when you start saving," says Josh McWhorter, president of Black Oak Asset Management in Cartersville, Ga. Money you save in your 20s and 30s has decades of compounding ahead of it. For example, a worker who saves $5,000 each year between ages 25 and 65 and earns 5 percent interest would have $634,199 in retirement. An employee who saved the same amount annually but didn't start until age 35 would have just $348,804.....

To read the rest of this article, please go to: usnews.com article link.

Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group. www.brightscope.com

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