Fifty bucks a month doesn’t buy a lot. It might get you a bag or two of groceries, dinner at a nice restaurant, or a couple of tickets and snacks at the movies.
Or you could use that $50 to start building your nest egg. While $50 a month adds up to only $600 a year, through time and the power of compounding, your $50-a-month investment may contribute significantly to your retirement fund – or your other financial goals.
Fortunately, $50 per month is all you need to get started with Thrivent Mutual Funds automatic purchase plan1. [The $50 starting amount is available only when setting up a $50-per-month (minimum) recurring or automatic purchase plan.]
How does $50 a month add up?
Here’s how much a $50 investment each month could bring you over a lifetime.
(Examples are hypothetical for illustrative purposes only. They are not intended to represent the performance of any particular investment product. They do not take into consideration product expenses or fees. The results would be reduced if the costs were included.)
Example 1: Investing in a portfolio with a 5% average annual return.
- After 10 years, your $50-per-month contribution (with a 5% annual average return) would have grown to about $7,750
- After 20 years it would have grown to about $20,000
- After 30 years, it would have grown to about $40,000
- After 40 years it would have grown to nearly $75,000
- and after 50 years, it would have grown to nearly $129,000.
In the chart, you can see how your initial dollars invested become a smaller portion of your investment as the reinvested returns grow over time.