“Twenty-one percent of those surveyed who have not retired have saved nothing for retirement and 44 percent have saved less than 10 percent of their salary.”
This quote is from Financial Advisor Magazine talking about a survey done by TIAA-CREF. How do people think that they are going to live in retirement? Do they plan on retiring?
Regardless of how old you are, it’s better to have something rather than nothing. Take a look at how much the Social Security Administration will pay you in retirement and you tell me if you can afford NOT to invest an extra $50 per month in your 401k, 403b or IRA.
Let’s take a look at the numbers, shall we?
Start Investing Per Month % Return Value at 67
18 $50 9% $536,841.50
21 $50 9% $408,642.74
30 $50 9% $178,618.62
40 $50 9% $68,888.51
50 $50 9% $24,125.50
It’s pretty simple:
- If you have a 401k or 403b at your job you probably have a match. Investing a few dollars every pay period lowers your tax base (instead of paying Uncle Sam you invest in yourself) and your company will contribute a few coins to every dollar you invest. Start early. Invest often. Check and see how much contributing $50 or $100 each pay period will change your take home pay. There won’t be much change in how your check looks every two weeks, but it could change how your retirement looks.
- If you don’t have access to a 401k or 403b then open an Individual Retirement Account (IRA) at a brokerage house that you trust. You have to fill out a two page application and send over a voided out check. You can open many accounts by promising to contribute at least $50 per month. That $600 per year could grow into 5 or 6 figures using compound interest. Start early. Invest often.
If you are thinking about investing and you’re not sure where to start:
- If you are a member of a credit union: contact Balance for FREE help.
- If you have an Employee Assistance Program (EAP) at your job: contact the EAP for FREE help.
- If you do not have access to these: find a fee-only financial advisor for help.
You can create the life you want.
You are powerful.
Go get it.
Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com