Of course when you are in the midst of your 20s, who really thinks about retirement planning? Think back to the good times of working all day and staying out all night just to repeat the cycle. Then you begin approaching your 30s and realize your long term goals which include retiring comfortable in your 50s. Executing investing strategies at a young age allows you to put aside a low amount of money per year while growing your savings for the long term.
Begin saving today
Planning for retirement is not like planning for a big party; it takes long term goal setting which can be accomplished by taking the time to write your goals and research different investment options. Do you qualify for a 401k at your job? Do you know what a Roth IRA is? You may think it is hard to start saving but in reality, putting away even $50.00 per month in your 20s will help get you on your way to saving for retirement. Calculate retirement savings to find out how much you will have saved in 25 years.
Where does the money go
Enjoying life in your 20s can be accomplished but on a budget versus spending every cent which you worked hard for. Simple tasks like getting into the habit of saving $25.00 each pay check to send to a savings account or even savings accounts which automatically pull money starts the retirement planning process without too much hassle.
How much should you save
Retirement planning in your 20s can be the last thing you want to think about. Depending on your job and living situation, your contribution to your retirement savings account can vary. Some employers will match your contribution and if your living expenses are minimal, consider contributing the maximum allowed. If you are unsure of where or how to invest, consider contacting an investment adviser to help you with your retirement planning.
Retirement planning check list:
• Send at least $25.00 each paycheck toward savings
• Write down your long term retirement goals
• Contact an investment adviser
• Contribute to employer contribution retirement account