April 2015 33 annual investment starting age $471,640 out of pocket $692,950 investment gains 7% over 30 years How to save a million This table shows at each age how much employees would need to save annually and what their total out-of-pocket contributions would be to reach a savings goal of $1 million by age 65. The figures are based on an investment return of 7 percent per year, compounded annually. They do not include company contributions and are not a guarantee. tips • Start now. • Maximize the company match. • Avoid withdrawals and loans. • Diversify investments. • Make catch-up contributions, if age 50 or older. • Use Boeing-sponsored tools and services. $806,280 investment gains 7% over 40 years $528,360 investment gains 7% over 20 years $193,720 out of pocket $307,050 out of pocket $1,000,000 total value at age 65 $4,843 $10,235 $23,582 25 35 45 that he couldn’t touch for decades. That changed, Kumar said, when he got married and had a child. His co-workers at a previous job convinced him it was time to start saving—at least enough to get the company match. A few years later, when he came to work for Boeing, Kumar was given a report on his retirement savings to that point—and was pleasantly surprised. The money saved from his previous job had grown substantially. He eventually rolled it into the Boeing VIP and has kept a watch on it ever since. “If I stick to my contributions I don’t have to worry about it,” he said. “I may even call it quits early.” n ronald.e.taylor2@boeing.com della.ohalloran@boeing.com he likes the Financial Engines “stoplight” graphic—green, yellow, red—that lets him know when he should consider making adjustments to his investments. Most VIP participants also have access to Financial Engines investment advice, as well as a series of online, on-demand retirement-themed courses designed to help them “retire well.” Retiring well is a top goal for Alyssa Voightmann, a 32-year-old marketing specialist with Commercial Airplanes in Renton, Wash. Although her retirement is a long ways off, Voightmann said, with the transition of her nonunion pension plan just months away, she and her husband understand they are more responsible than ever for managing their retirement finances. Starting the online courses was just one of many steps she’s taking. “My husband and I have regular discussions where we review our finances,” said Voightmann, who has been with Boeing for nine years. “If you don’t start planning right now and really start thinking about your desire to live as comfortable as possible in retirement, you might be rudely surprised.” Hemanth Kumar also has worked for Boeing for nine years. A manager with Engineering, Operations & Technology in St. Louis, he grew up in India, where adult children frequently provide for their parents in retirement. Saving for his own retirement was an unfamiliar concept, Kumar said. Even after arriving in the U.S., Kumar only gradually started saving for retirement because he didn’t see the value in putting away money
Frontiers April 2015 Issue
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