Retirement Planning

The sooner you start saving for retirement the better off you will be.  If you start early enough, setting aside even a small amount each month can accumulate substantial savings in the long run because of compounding investment earnings. At age 35, if you began investing $200 at the beginning of each month at 8 percent interest for 30 years until age 65, you would accumulate a retirement nest egg of $300,060 (before taxes).  If you started 10 years earlier, the same compounded monthly investment would have grown to $702,856!  For every 10 years that you delay setting money aside for retirement, you will have to save three times as much to reach your nest egg goal.

Unfortunately, most people put off planning for retirement until just before they retire.  A study conducted by the U.S. Dept. of Health and Human Services showed that 1% of the population retired wealthy, 4% were financially secure, 20% had to keep working, and 49% relied on Social Security as their main source of income.  Don’t be part of the majority! Start planning today by determining your cash flow.  Figure out how much you make, how much you spend, and where the money goes.  By understanding your current finances, you will have a much better idea as to what you will need in retirement.