Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Albert Einstein was fascinated over the mathematical power of compounded interest over time. The sooner you start saving for retirement the better. The consequences for procrastination are expensive and will dictate the lifestyle you'll lead in retirement. A retirement plan is essentially paying yourself first. Social Security may be inadequate, so it's up to you to fund your own retirement, starting today.
Sr. Advanced Markets Consultant, Ash Brokerage, Greater NYC Area
A columnist for Fool.com, Morgan Housel, just wrote a terrific article on this topic titled, An Open Letter to Everyone Under Age 30. He describes why the best estimate for what stocks will return over many decades is 6.6% per year, and then goes on to put some real numbers to what 6.6% growth means: Every dollar saved by a 20 year old for the 45 years until retirement will grow to be worth $18.50. Since a 30 year old only has 35 years until retirement, each dollar saved will only be worth about $9.60.
As Housel says, "Saving a little bit of money when you are young can be a more efficient way to build wealth than saving a lot when you're older."
.JPG){kind=avatar}
As Housel says, "Saving a little bit of money when you are young can be a more efficient way to build wealth than saving a lot when you're older."