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.