Yes that’s right – it’s all about time in the market, not timing the market.
Retirement Savings Example
A simple example will make the point.:
At age 25 begin investing $5,000 per year for just TEN (10) YEARS. If you earn 8% per year, after 10 years you will have $78,227. Now stop adding to it and allow it to remain invested for the next 30 years – until your age 65. At 8% growth per year you will have amassed $787,171 for retirement!
BUT if you wait until age 35 to start your retirement plan it becomes much more difficult. If at age 35 you start investing $5,000 per year and do it for TWENTY (20) YEARS – thus doubling what you have invested – you will still only have $533,503 at your age 65. Not a bad retirement fund, but much less than by starting early and making it so much easier to become a millionaire by the time you retire!
According to a study reported in November 2012 on www.dailyfinance.com, 38% of respondents age 45-54 reported having less than $100,000 saved for retirement. Another 23% preferred not to answer or did not know.
Where will you be at your desired retirement age? Able to retire in the lifestyle you have planned or struggling to build that retirement nest egg?
Start Early, Be Happy in Retirement
Need help getting started? Contact Bill Cantrell 480-734-1256 or email Bill at bill@cantrellfinancialstrategies.com