How Early Should You Start Saving For Retirement?
Saving for retirement is something that all Americans need to do. For a person to maintain their current standard of living after retirement they are going to need to have over a million dollars saved. According to Shalom Lamm, it is essential that a person begin to save for retirement early. Lamm suggests that even when a person lands their first job they should begin to put some money away for retirement.
Financial experts have stated that a person needs to begin to think about retirement and savings as soon as they enter the workforce. They understand that when a person first enters the workforce they may not be making a lot of money. They may also have other financial goals to save for such as a home or children. A person does not have to put a lot of money away for retirement. When a person begins working they should have a goal to put away 10 percent of their income each month. If they can do more that is great but 10 percent is the minimum amount. They can put their money in an account that offers compound interest. This will allow the money to grow at a faster rate and when they retire they will have a nice amount.
Saving for a Goal
To surpass the million dollar mark for retirement a person needs to start saving at the age of 25 or early. At this rate, they will need to save around $500 a month. This may seem like a lot of money for some people to put aside. If they begin to save at the age of 18 or 21 they will not have to set as much money aside. The later a person starts saving for retirement the larger portion of their income they will need to save.
Save an Affordable Rate
When saving for retirement every little bit will help over the years. Even if a young person is able to put away $10 or $20 when they begin working it will be a start. As a person advances in their career and sees a raise they will be able to put more money aside. They will be able to contribute a higher amount to their retirement account and will be on their way to savings. If a person does not begin to save early in their career they will have a lot of money that they will need to put away in the later years. They will need to put a larger portion of their income away and hope they have a fund investment plan to make up for any differences in their savings in the later years.
When saving for retirement, Shalom Lamm thinks it is wise to begin to save as early as possible. This will allow a person to stop worrying about their income when they get older. They will have the money they need to keep up their home and they will be able to enjoy retirement.