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It’s Never Too
Soon to Plan for
RetirementBy Steve Blount of Lake
Charles, Louisiana
It’s Never Too Soon to Plan for
Retirement
The early 20s are the ideal time to start planning for retirement. Consider this: A 22-year-old who begins funneling $4,000 annually toward retirement will have $1 million 40 years later, assuming 8 percent yearly returns. Delay retirement planning a decade, and the same investor will have to contribute $8,800 every year, more than twice as much, to achieve to same goal.
It’s Never Too Soon to Plan for
Retirement
So, how can twenty-somethings get
started on retirement planning? Here are
a few simple steps:
1. Invest in your company’s tax-deferred
retirement plan. Find out whether the
business has a match and invest up to
that amount at a minimum.
It’s Never Too Soon to Plan for
Retirement
2. Do not be overly cautious. This is the time to
load up on stocks because retirement is
decades down the road.
3. Reduce debt. Paying off loans and
minimizing debt provides for a more secure
financial future.
4. Open a Roth IRA. This kind of account
provides tax-free withdrawals in retirement.
It’s Never Too Soon to Plan for
Retirement
About Steve Blount: The owner of an
independent retirement planning firm,
Steve Blount advises clients in Lake
Charles, Louisiana, and the surrounding
areas.