“Mix time and money and … viola … compound interest!” Compound interest … or earning interest on interest … gives you the potential to accumulate more the longer your money is invested. Say you have $250,000, or 20 years’ worth of savings in your employer-sponsored plan. Let’s see what this nest egg might look like if you gave it another five years.

What a difference 5 years can make.

The following is for hypothetical illustration only and is not intended to imply the performance of any specific investment. Taxes are paid upon withdrawal.

Total Savings Today	Plus Contributions of...	Can Be This in Five Years
$250,000         +		$409,199
$250,000         +		$427,569
$250,000         +		$445,938

Assumes 8% interest. Dollar-cost averaging, a systematic investment plan, does not ensure a profit or guarantee against loss. Investors should consider their financial ability to continue their purchases through periods of low price levels. Source for calculation: “Compounding with Monthly Contributions” calculator at interest.com.

You may want to entertain the “time” option if you’re 5 years or more from your normal retirement age … or if you’re still raring to get up and go to work every day. Just remember, if you want to get the most mileage out of time and savings, be sure to save in your employer-sponsored plan where money grows free of income tax until withdrawn.

“Time may work in your favor another way, too.” People lucky enough to also qualify for an employer’s pension plan (where your employer makes all the contributions) may get an added bonus. More years at work can mean more years toward your pension’s retirement benefit.