Financially (and elsewhere) it is better to deal with reality!
"I don’t need to start saving until I’m in my 40s or until I can afford to save big money."
Why is this myth busted?
If you put a small amount of money into a retirement account earlier, it can be just as effective as putting a lot of money in later.
A $500 contribution made at age 25, compounded annually at an 8 percent rate of return, could be worth nearly five times as much after 20 years. If you wait until age 45, you’ll have to contribute over $2,300 to equal what that original $500 may have turned into by then.
Besides, starting small is the easiest way to get the ball rolling. Saving just $25 a week for 30 years can result in over $160,000 at that same growth rate. Increase the amount you save as your financial situation allows, but if you wait until you feel you can contribute a lot of money to a retirement account, you’ll probably end up waiting too long.
Call me for a FREE analysis of your financial situation,
Jesse Alvarado
(562)822-5565
No comments:
Post a Comment