Time Value of Money
Just as you headed off to kindergarten to prepare you for a successful future, you need to prepare for your retirement well in advance. Because of the way compound interest works, the sooner you start saving, the sooner you will be able to call working an "option" rather than a "necessity."
Many understand the time value of money in that $1,000 today will not buy the same goods and services $1,000 will buy in five years. On the reverse side, if you invest $1,000 at age 25 it will grow to $10,902 upon retirement at age 65 (if you net a conservative 6% return). What could be better than this? How about investing that $1,000 in a Roth IRA and not paying any taxes on the earnings.
If you waited until you were 45 to begin investing, you would need to invest over $3,200 to net the same amount at age 65. While it is easy to put off thinking about retirement when you are just getting started, time can be your best friend when it comes to money.
If you are interested in getting started on your retirement planning, call us today.
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