A more aggressive strategy that earns an annual return of 10%, which is similar to the long-term return of the S&P 500^® Index,¹ could add up to more than $35,000 over the next 20 years, more than $100,000 over the next 30 years and nearly $280,000 over the next 40 years. 

Of course, there’s no guarantee that your portfolio would match the return of the S&P 500 Index, which has grown at a rate of 10.88% annualized from 1970 through the end of 2023.² Past performance does not guarantee future returns, and investing may involve the risk of loss of principal.

Obviously, the more you can invest, the more you could accumulate over the long term. Monthly contributions of $100 a month at a 5% return rate would grow to more than $80,000 over the next 30 years and nearly $150,000 over the next 40 years. At a 10% return, your portfolio would grow to more than $70,000 in 20 years, more than $200,000 in 30 years, and more than half a million dollars in 40 years.

Investing through an automatic monthly contribution plan is one of the easiest, most convenient ways to build your investment savings over time. At Thrivent Mutual Funds, investors can start with as little as $50 a month through our automatic purchase plan.³ (The $50 starting amount is available only when setting up a $50-per-month minimum recurring or automatic purchase plan.) (See: Investing $50 a month could add up nicely for your retirement)

Best times to boost your contributions

You may experience occasional opportunities that could be ideal for increasing your investment contributions, including:

Increased income. A sudden boost to your income—through a raise at work or some other source—would be one of the most obvious opportunities to increase your investment contributions. And one of the best times to begin making those investments may be immediately after you get a raise—before you get accustomed to your higher income and the tempting ways to spend it.

After paying off a debt. You may have additional money available to invest each month after you’ve paid off a debt, such as a car loan, home equity loan, college loan or even smaller loans for things like appliances or furnishings. And, again, a good time to start investing that extra cash may be immediately after paying off one of your loans—and before you’re tempted to find other uses for that money. 

After a windfall. Another opportunity to boost your long-term investment portfolio would be after receiving a windfall, such as a bonus at work, a big commission check, inheritance or a tax refund. If you invest your windfall rather than spending it, that could pay big dividends over time. (See: Your money: How to navigate a windfall)

Bumping up your investment contributions—whether through an automatic monthly investment plan or a single investment of a recent windfall—may require a little sacrifice in the near term, but it may put you in a far better financial position in the long run.
 

² Morningstar