Retirement, by nature, involves lots of planning. While it may seem like a drag now, the more preparation you do early on, the better you’ll be positioned down the road. This process involves a hefty portion of foresight. Sure, it may seem difficult to conceptualise what you’ll want and need at age 75 as a 35 year old but it is well worth the effort. What did your mother always tell you? Better safe than sorry!
Consider this: a 25 year old that sets aside $3,000 annually in a retirement account for 10 years has the potential to see their investment grow to over $338,000 by age 65 (assuming a 7 per cent annual return), according to CNN Money. And that is only 10 years worth of savings! Taking the time to make preparations early on in life can safeguard you considerably down the road.
Okay, so we have you convinced. Now comes the part where we outline just what to do. Retirement planning may seem like a daunting task but the process isn’t actually as hard as one might think. It’s a relatively painless practise (other than having to part ways with some of your hard earned cash). We’ve boiled it down to a three step process, let’s take a look:
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