Tip 2: Tap into the magic of compound investment returns

Tip 2: Take advantage of compounded growth potential

Another great reason to invest in your 401(k) is compounded growth potential. Not only do you get to keep more of your money working for you, but your contributions, your Bloomin’ Brands contributions, and any earnings are reinvested back into your account to help your money grow even more. And the longer it stays in your 401(k) account, the harder each dollar works for you.

Check this out. Jon and Amy both make $40,000. Both started working at Bloomin’ Brands at age 25. Amy starts saving right away and contributes 6% of her pay until she is 65. Jon puts off signing up for the 401(k) until he’s 35, but decides to contribute 10% of his pay, saving for 30 years until retirement. Who is better off at age 65?

 Total contributions*Total at age 65**
Amy
Total contributions, 6% of pay
(40 years, from age 25 to 65)
$160,000$638,981
Jon
Total contributions, 10% of pay
(30 years, from age 35 to 65)
$168,000$456,980

* Includes employee contributions and BBI matching of 100% of the first 3% of the employee’s pay contributed to the Plan, plus 50% of the next 2%. Ongoing matching contributions are currently in place, but are subject to change in the future.

** Assumes 6% average annual investment earnings.

As you can see, Amy paid less out of her pocket and wound up with a lot more at retirement — all because her money was invested longer.

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