Funding Retirement: Can you afford to wait?

Funding retirement is an important part of your financial plan.  Where are you at in this process?  Which perspective best describes you? 1) I’ll get to it later; 2)  I’m too young to worry about it; 3)  I’ve got too many other bills to pay.  Each of these excuses are common in today’s society.  Each day we choose what we spend our money on.  If we spend it all on today’s needs, we’ll be less than happy when we get to retirement.

Procrastinator (I’ll get to it later)

When faced with the decision to save for the future or spend for today, a lot of people prefer the latter.  Putting off retirement has financial costs.  For example, look at the different monthly investment required to achieve a $375,000 nest egg.  At age 35 you need to save 251.62 per month.  Wait five years  (40) and the monthly requirement increases to 394.12.  Investing early and often can pay off big time due to the power of compounding. 

Getting to it later is not a good strategy. You can open a Roth IRA with as little as $250.00.  You can make monthly investments as small as $50.00 per month.  You can start small and increase your investment as your income increases.

I’m too young to worry about it.

You need to worry about it.  The previous example illustrates that the earlier the better. 

I have too many bills to pay.

Granted, we all must pay our bills.  However, there are things that happen to most of us that can get the investment ball rolling.  Here are a few suggestions: 1) Pay raises; 2) Income tax refund;  or 3) second jobs.  Do yourself and your family a favor and get started today on your retirement.  Be on the lookout for future articles on the beginning steps to your retirement.

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