Aug 01, 2016
By Rob Myers, CFP® Investment Advisor Rep at World Trend Financial
Have you tried to budget for retirement in the past? Maybe you did a good job of planning by looking over your expenses and determining where you could make changes to meet your retirement goals. And maybe you lived by your plan for a few days, or even a few weeks. But then the detail of tracking income and expenses got to be more than you were willing to deal with.
If that is the case, here is a simple way to make sure you have a nest egg by the time you are ready to retire: Set aside a fixed percentage of every dollar that comes in for retirement investing. For example, say you earn $100,000 a year. You could decide to save 10% of that amount. Do you think that saving $10,000 a year might not make a difference? If you are age 35 and would like to retire in 30 years, $10,000 invested each year will accumulate to $697,000 in that time, assuming a 5% annual return. If you start at age 25, the accumulated value when you are 65 would be $1,268,000.
Perhaps you believe you do not have enough current income to establish a savings program of any size. Are you sure? Ask yourself what you would do if you lost your current job and had to take a job that paid less. Chances are you would figure out where to cut your spending. Why not apply that discipline now and make your current income provide both a current living and an investment in your retirement?
The wealth management professionals at World Trend Financials are here to help you achieve your financial goals! Rob Myers can be reached via email at email@example.com.