The road to retirement: a journey best started early!
I can remember when I got my first corporate job. I took the job for the health insurance for my family and took a pay cut as well. I can remember my father strongly suggesting that I participate in the company retirement program and put in as much as the company would match. At that time it was 6% – which at the time seemed like a lot for me to put aside but as my dad said I would be giving up “free money” from the company. So began my journey……
After that first year, his suggestion was that with every raise I received, to take that amount and put it into retirement program until I reached the max contribution amount. Which is exactly what I did and that was easier because it was not taking away from my routine “spend.”
That money begins to grow and compound quickly. My only wish is that I had done some retirement planning earlier in life.
It’s often asked when should someone begin to save for retirement and everyone answers the question differently. Starting early is smart. Ensuring you can support yourself and your family is key as well. So every situation is different.
When you think about retirement (and you should think about it every year) you should assess your goals, your dreams, and your quality of living plan. That may change as you get closer to retirement but ensuring a plan is in place is critical. The small investment in your 20’s will grow and the more you feed that investment, the better your retirement plans will be funded.
It is interesting to think about when one wants to plan for retirement. Many people work well into their 60’s and others into their 70’s. Again this is truly a personal decision – do you love what you do? Is it your passion? If so, perhaps working until your 70 works for you. Ultimately you want it to be your choice to retire when you want – and that only happens through proper retirement planning which begins when you are young.
As I have stated in previous blogs, a financial advisor (a trusted financial advisor) can help you plan for retirement while planning for your financial health now. You can in fact save for retirement while living a good life now.
Check out your company’s plan for retirement matching, 401K matches, etc. Understand your goals for retirement. Don’t underestimate the power of starting your plans for retirement now!