Make contributions a priority
The hypothetical examples above representwhat-ifscenarios not always possible to replicate in real life. For instance, you may not be able to invest the same amount each year or you may have to skip some years altogether. That's okay. Once you've determined an IRA is the appropriate savings vehicle, take small steps toward saving 12%–15% of your gross income for retirement (including any employer plan and matched contributions) each year. It's important to note, nonworking spouses can make spousal contributions.
Maybe you don't have the financial flexibility to make a lump-sum investment in your IRA in JanuaryorApril—or any other month, for that matter. That's okay too. Try setting up recurring automatic bank transfers. Making contributions twice a month over the course of 30 years (for a total contribution of $210,000) and earning a 4% average annual return would result in an end balance smaller than Example A but bigger than Example B. Not too shabby.
Want to get a better handle on your retirement goals? Use ourretirement income calculatorto review your progress so far and determine how much money you may need in the future.
If you're making an IRA contribution, no matter the amount and timing, you're on the right track. But if you happen to find yourself in the position to make your annual IRA contribution before the following year's tax-filing deadline, go for it!
