Should I start saving for retirement?
I have a job right now that offers group health insurance but no retirement benefits. I am a single 30 year old. I was talking to my mom the other day and told her I would like a job that offers retirement benefits. She had an annoyed look on her face and she said I didn't start retirement benefits at a job until I was in my 50s. She said you don't need to either. My mom is very competitive as she looks at the younger generation at competition as well as whatever was good for her is good for us when it comes to pay and benefits. How important is it to start retirement benefits and is something I need to start now or can it wait?
How do i start saving for my retirement?
open a bank account. a safe one. and put in money. it doesn't have to be hguge amounts just like at the end of the month if you had 30 bucks of change put it in the bank and when you retire you'll have a lot.
How can I start saving for retirement at 17?
None of the following is official financial advice:Assuming you have a job with income as a W-2 or a 1099 you can open a Roth IRA account (you may need your parents as custodian to do this or you may not that will require your research)You can contribute up to the entirety of your employment income or $5500 per year whichever is less.Invest the IRA as you see fit through your resewrch. You may be able to use an investment advisor or financial planner to help you with this.If you start now and save the maximum every year until you are 60 at a conservative 7% growth you will have somewhere between $1,000,000 and $2,000,000 for retirement. And you can and should invest much more than this as your career progresses.
How can i start saving for my retirement?
First of all, KUDOS for thinking about this now. Time is an investor's best friend, and starting now will make it MUCH easier to reach your goals in the future. I promise, you'll be very glad you did. To answer your question, there are many ways to start saving for retirement. Probably the best (if it's available) is your employer's 401k (or other) retirement plan. This method has two great advantages: First, it's automatic - you stash away a little bit with every paycheck. You'll be amazed at how quickly it grows. Second, in most cases your employer will match a portion of your savings. That is *literally* free money - you can't beat that! If you don't have an employer plan available then you should look at your IRA options. With a traditional IRA you get a tax deduction in the year you contribute and you will eventually pay taxes on the money when you take it out in retirement. I personally like the Roth IRA, especially for younger investors like yourself. You do not get a current tax deduction for your Roth contributions, but the benefit is that you NEVER pay any taxes on the growth of your investments. Over the course of 30-50 years (which you're looking at), the bulk of your account will be investment growth. As for how much to invest, start with about 10% of your gross (before tax) income, and work your way up to 15-20%. The current (2013) annual max for a 401k is $17,500, and the max IRA contribution is $5,500 annually. You should aim to get as close to these maximums as you can. Within each of these types of accounts, you'll have options as to how you want to invest your contributions. There's not enough space here to talk about all that, but luckily most retirement plans have made it easy with something called "target date funds." These are mutual funds specially designed to start out investing aggressively (as younger investors should), and eventually get more conservative as you approach your retirement. You would want to look for a fund with a target date around 2055 or 2060. Finally, I highly recommend heading down to your local library or book store and picking up one or two books on investing/retirement planning. This stuff isn't all that complicated, but it is VERY important to know. You are young - investing in a little education now will pay off huge with a lifetime of informed decision-making. I hope that helps. Good luck!!
When should I start saving for retirement?
Start saving for retirement now, and let me give you an amazing example to prove why. Person A starts saving $500 a month at age 20 and stops at age 30. She earns an average of 5% per year on her investments until retiring at age 65. Person B doesn't start saving $500 a month until age 30, and continues to save each month until retiring at age 65. She also earns an average of 5% per year on her investments. Person A only saved for 10 years. Person B saved for 35 years. They both saved the same amount per month, they both earned the same return on investment. Guess what? Person A has MORE money at age 65 because of starting sooner. The extra 10 years of compound interest makes an enormous difference. That's why you should start now. By the time your kids are college age, who knows what college will cost. The way things are going it might be free to get a degree online. It certainly won't keep going up by 5% a year like it has been for a decade, because it's already on the brink of being unaffordable. And colleges can't stay in business if nobody can afford to come. When your kids are 10 years old, you can re-evaluate based on the situation at the time.
What age should you start saving for retirement?
Sign up as soon as possible if you work for a company that actually has a retirement program. You can choose how much to save and can save more later when you are making more. If you have to save on your own, take a percentage and put it in a Ross IRA or find a retirement plan that you can contribute to. Do automatic withdrawal from your pay check so you don't continually put off saving until the next paycheck.
When should I start saving for retirement?
Financial advisors will tell you that the earlier you start the better, so I think they mean as soon as you are out of nappies and eating solid food.That way the scam merchants get their commision straight away and for a lot more years than if you start later.Wake up you are being fed a complete load of BS about retirement.You are told of this golden future where you are 65 years old and stop working and have $1,000,000 in the bank and then sit around on your bum until you die of boredom 6 months later.The reason you are fed this lie is that financial Advisors get rich a lot quicker and they can go off and do what they want a lot earlier safe in the knowledge that the passive income they have generated from you by skimming off your retirement pot will give them a great retirement.I finally wised up a long while back. I was 38 and spotted what was going on so made my own retirement plan. It took a while to get sorted but by my late 40’s I was having a ball being retired doing what I wanted to do and now at 62 am still enjoying life.The secret is to forget the pot of money and this cliff edge of 65 years.Set up passive streams of income. I have some real estate, affiliate marketing, trading and a few other things that dribble in a constant stream of cash. Other ongoing projects for when I get frailer are writing guides and books about what I learned in life.My pot of money is small because at the end of the day I am not going to be taking it with me when I go.EDIT: Well of course this did get some financial advisors going a tad. Non of them will ever answer the simple question.If you are so good at investing why are you dicking about getting commissions from me when you should be investing your own money and doing this?The answer is of course they are just regular folks in suits trying to earn some money and do not have the ability to actually make money other than by engaging in the zero sum game that is called finance. So they shuffle money around and skim off their take. This has been going on for millenia and nowadays they have some fancy computers and other stuff to bamboozle you even more but nothing changes.So my advice is rubbish of course to them as it knackers in their cosy little Ponzi scam…. sorry scheme as I must avoid a BNBR.
If I start saving for retirement at 30, how much money do I need to save per year to retire by 50 with a 50k/yr retirement?
Being a Certified Financial Planner, I would suggest you to take advice of a financial planner and then come at the calculated result of how much are you going to need post your retirement. Because most of the times we forget the inflation part in our assumptions and eventually don’t save the required amount.However, for your benefit, let’s see how much should you save to achieve 50k/yr in your retirement years.Current Age: 30Retirement Age: 50Life Expectancy (assumed): 85Money Required during Retirement years(Today’s Value): 50,000/yearInflation: 5%At the time of Retirement, i.e. when you would be 50, you are going to need: 132,665/year for another 35 years (85 years - 50 years). This amount has been calculated by taking inflation’s effect into picture.You will need a corpus of 77,74,870/- at your age 50 to achieve your targeted annual amount. (assuming your corpus is at 2% rate of return)Let’s assume, you will be getting a rate of return of 10% on your retirement investments.Now to achieve your retirement goal, you need to save 123,406/ per year in an investment instrument giving 10% rate of return.(*There would be lots of assumptions in any retirement plan, hence it is advisable to contact a financial planner for better clarity of situation.)If you are in India, you can check my website Personal Financial Planners | Financial Advisor | Investment Advisor for a comprehensive financial plan.