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We want to share with you the valuable information that will help set you up financially for the rest of your life. I’m talking about the magic of compounding interest. We did say “magic,” because most people do not understand how compounding interest works. Consistently putting a small amount of money away in your twenties/early thirties, and continuing to do so each year can result in a substantial amount of money by the time you turn 60.

Let’s take the example of a 27 year old construction professional who plans to retire at the age of 60. Using’s compound interest calculator, let’s say our construction pro currently has $5,000 in his or her 401k. This would be the “initial investment” in Step 1.

Step 2 is where we will denote how much we plan to contribute each month, and for how long in terms of years. Retiring at the age of 60 means our construction professional will contribute for 33 years, and he or she will start out by consistently contributing $700/month.

Interest rates will vary from person to person, but you can determine what yours is by logging into your 401k or IRA account. For this example, we’ll use 8%.

Step 4: Calculate. Choose “annually” under compound frequency. Hit “calculate” and see how much the interest on your initial investment and continued contributions will compound over the next certain period of time!

After an initial investment of $5,000 in this construction professional’s 401k, with continued monthly contributions of $700/month (a total of $282,200), he or she is set to retire with $1,289,386.46.

Play around with your own numbers using’s compound interest calculator to figure out how much money you will have when you retire if you begin investing in your retirement plan now. The results are staggering.

Although Delta Construction Partners is not a financial planner and we do not recommend financial products or offer financial advice, we believe this is valuable information. We care about the construction professionals we represent as well as their families, and of course their financial futures. Starting early and remaining disciplined in your contributions is one way to secure financial independence.