Start Saving EarlyBy: Jeffrey Schreiner

If your goal is financial freedom and smooth sailing, start saving now!

Retirement• Retirement is one of those words you

may or may not like to here, but no matter what one day it will happen.

• The average American retires around the age of 62.

• But the biggest question when looking to retire is always: When should I start saving in order to have enough money to retire? Well we are going to find out just that question!

When should you start saving?

• Well, to give you a perfect example I will use myself as your example

• I plan on starting my career in Accounting at the age of 23 after I graduate from Rowan University.

• The average Accounting starting salary is about $51,500.00.

• I hope to retire around the age of 65 years old and my projected death age is around 75. (Find out how long you are expected to live, Here)

Factors about Saving

• The first factor is the average inflation rate, which for me is around 2.54%.

• The second factor is the savings rate, which for me is around 5.50%.

• So by the time I retire, after 42 years of working, I should be making around $143,971.06.

• Certain factors need to be kept in mind when you figure out how and when to save.

Factors about Saving• Given the information on the slide before• When I retire I will need to have

$107,978.30 to live off of for each year of my 10 years of retirement. Which is 75% of your ending salary. (10 years sense I am expected to die at 75 and retire at 65)

• So over my 42 years of working I will need to save up $813,900.02, in order to live of a salary of $107,978.30 a year. If I die early I will have left over money and if I die past 75, I will be needing some help.

• * Click on the money sign to find out important ways to save!

Don’t Start Saving Late!

• If I start saving – 10 years in I will need to save $9,844 per year– 15 years in I will need to save $13,797 per year– 20 years in I will need to save $19,917 per year– 25 years in I will need to save $30,148 per year

• These numbers show how much I will need to save per year, to reach my total annuity.

• However, these numbers do not include stocks and investments, which could also be used to make more money. Check some of the possibilities out here.

• But the best is always last, if I start to save right away, I will only have to save

Start Saving Early!

a year!• That is about 1/6 of the amount that I would have to

save if I waited 25 years in, to start saving!• Find out you about how much you should start

saving each year with this savings calculator.

This chart shows how much I will save each year, depending upon when I start saving. As you can see the bars get closer together as the years go by. Find out your starting salary in your field of interest!

Percent of Salary Saved

This graph shows what percentage of my salary I will have to save depending on when I start saving. I only have to save 10% of my salary if I start saving right away. Find out how much you should have in your 401k by clicking on one of the percentage bars.

• First of all, when you start saving early, you do not have to save as much per year as, if you started saving 10,15,20, or 25 years in.

• Second I would only have to save 10% of my starting salary, this number will only shrink as your income increases. Your percentage will be low too!

• Finally, you will feel comfortable with your decision, knowing you have money to retire on and not have to worry about how you will make up for starting late. Find some other reason’s why to start saving early!

So, Why Save Early?

Sources• http://www.ehow.com/about_4618296_average-retirement-age-

america_.html

• http://moneycentral.msn.com/investor/calcs/n_expect/main.asp • http://www.ehow.com/about_5208216_average-starting-salary-c

pa.html

• http://www.bea.gov/briefrm/saving.htm• http://www.inflationdata.com/inflation/inflation_rate/historicalin

flation.aspx

• http://www.careonecredit.com/knowledge/101-ways-to-save-one-dollar-a-week.html

• http://www.howtoinvesttoday.com/2010/06/27/reliance-money-with-good-investment-opportunities/

• http://www.money-zine.com/Calculators/Retirement-Calculators/Retirement-Savings-Calculator/

• http://swz.salary.com/salarywizard/layouthtmls/swzl_salaryrangenarrow_10.html

• http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/ToGetRichStartSavingInYour20s.aspx