Retirement Planning In Your 20s And 30s
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Begin Planning Now
During your 20s and 30s, retirement may seem too
distant for attention. Even so, the best time
to begin planning for retirement is now.
Why start so young?
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The earlier you begin,
the more you can save.
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Beginning early gives
investments more time to grow.
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You cannot foresee how
long you will be able to work. Injury, health
problems or other difficulties could interrupt
your future earning and saving ability.
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You do not know how long retirement will be. With
longer life expectancy, you could need enough
savings to last 20 to 30 years or more.
Even if you are making payments on college loans, beginning
a new career or starting a family, retirement savings
should be a priority. This article includes tips
and information to help you:
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Develop good financial
habits.
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Set retirement goals.
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Understand
and make the most
of retirement income sources. For example,
employer-sponsored 401(k) plan, military Thrift
Savings Plan (TSP), Individual Retirement
Account (IRA).
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Protect your financial future with insurance, wills
and powers of attorney.
Once you understand retirement planning basics, you may
want to consult a financial planning professional
for more in-depth guidance. The best way to achieve
your retirement dreams is to begin planning and saving now.
Get Off To A Good Start
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Monitor expenses, and
spend within a monthly budget.
- Establish an emergency fund. Keep 3 to 6
months of basic living expenses in a short-term
savings account.
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Limit credit card
debt.
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Keep 3 to 6 months of
basic living expenses in a short-term savings
account.
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Contribute the maximum
allowable to your 401(k) or similar retirement
plan.
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Save beyond employer- or government-sponsored plans
by contributing to an IRA or other personal
retirement account.
Topics covered in this section are:
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Updated Thursday, October 02, 2008
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All rights reserved.
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Basic Money Management
Basic Money Management