Michael J Porro & Company

Financial Advisors, LLC

180 Old Tappan Road, Old Tappan, NJ 07675-7052

Phone: 201-768-0218

Fax: 201-768-6487

Website: porrofinancialadvisors.com

May/June 2018

Money Smarts for College Grads

You’re pondering the start of student loan repayment and beginning a new career. So what do you do? Begin saving for retirement, of course.

Never a Better Time

Granted, your college loans will take a chunk of your beginner’s salary, but there will never be another moment like this in your life where time has such a dramatic impact on your long-term savings. Learn this for yourself by going to the compound interest calculator at www.investor.gov.
Small Turns Big

Try this on the calculator. Start out with a $0 balance and save $100 monthly. That’s only a few lattes or a couple of restaurant meals per month. By finding a few savings, you can juggle both this small monthly retirement contribution and pay your student loans. Back to the calculator, earn a hypothetical 7% interest compounded daily and input 40 years, your time until retirement. After 40 years, your $100 per month — $48,000 in total contributions — will have grown fivefold to $264,690.
Time Matters

If you wait 20 years to begin investing for retirement and double your contributions so that you still put away $48,000 using the same criteria, your money would grow to only $104,731. That’s how much time means when you are saving for long-term goals. Yes, pay your student loans. But putting away even a little toward your retirement — starting now — will matter greatly.


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Michael J Porro & Company and LTM Client Marketing, Inc. are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

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