Most young people don’t give much thought to retirement. They’d prefer to spend their money on their youth. A few forward-thinking individuals will give retirement some thought at a young age, but they might get stuck on some cumbersome economic details and decide to put it off until a later time. Very few people have a solid plan in place by the time they’re 25.
The fact is, though, that the sooner you get started on a retirement plan the better. This might be something you’ve heard a hundred times already, but every time you heard that phrase and failed to act on it, you made a huge mistake. Consider this: if you set aside $25,000 dollars at the age of 25 with 12 percent yearly compounding interest, you could retire with $2 million by the time you’ve turned 60 years old without adding another cent to your account.
All things considered, creating an effective retirement plan is simple enough to take care of within an hour. There are only a few points of data to be considered in the big picture: the age at which you plan to retire, and your estimated expenses after retirement.
With these two variables in mind, you can start to consider how much you’ll need to put away and how often. This will depend on your specific situation, but no matter how much you make, whether you’re wealthy already or still working a minimum wage job, there’s no reason that you shouldn’t retire a millionaire if you get started ahead of the game. Just try out any of the numerous interest calculators on the web to see how much you could save up by the time you’re ready to bow out of the rat race.
The best way to plan for your retirement confidently is simply to start planning in any capacity. After you’ve begun saving, you can adjust your plan as you age. Let’s reconsider the example given above. With $100 tucked away at 25, you could have $9,305.10 at 65 without saving anything else over the course of those 40 years.
If you still feel some trepidation about money management and retirement planning, you can always consult the experts. In particular, if you live in Portland or southwest Washington, Harlow Wealth Management is one well-respected financial firm in your neighborhood. They can help you save more and improve your retirement prospects within any time frame. It’s never too late to invest in your future.