If you’ve already begun an automatic investment plan, you may be making solid progress toward reaching your financial goals. But you might be surprised at how much more you may be able to accumulate over time if you can find a way to invest a few more dollars a month.
For instance, investing just $50 a month adds up to only $600 a year in total contributions, but through time and the power of compounding, it may ultimately help you build a sizeable investment fund during the decades ahead.
More specifically, contributing $50 a month through an automatic investment account with an average annual return of 5% could add more than $20,000 to your investment account over the next 20 years, more than $40,000 over the next 30 years and more than $70,000 over the next 40 years. (See chart below.)
(The following examples are hypothetical for illustrative purposes only. They are not intended to represent the performance of any particular investment product, nor do they take into consideration any product expenses or fees. The results would be reduced if the costs were included.)