Well, once again, October is upon us, and the spook of Halloween is right around the corner. When I think about being spooked, as a kid, and even now, I've had two really great fears. One is being eaten by a bear (you can also insert shark here if you'd like, but equally as scary). My second biggest fear was not being able to retire. Yeah, this was a fear, even in my teen years.
So, when I was nineteen years old, I opened my first IRA. Sure, it was a bit advanced for me, and I was not even sure what I was doing in my investment selections, but I was sure to get a jump on retirement. Compound interest is key, and I surely had time on my side. When we examine savings, the key is Compound Interest.
Here is the definition of Compound Interest from Wikipedia: Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.
Planning for retirement for some is a matter of insufficient fore thought. It may be that the New American "normal" is not to retire at all. I saw a statistic recently that reported the average 401k balance was $59k. As an average, over the ages, that simply is not enough. Many financial experts recommend 10 to 20 times your annual salary saved for retirement as a general rule, but everyone's circumstances are different. Another common rule is to have enough saved so that the amount that one expects to live on in retirement is no more than 4% of the total saved. In example, living on $50k yearly in retirement necessitates a nest egg of about $1.25 million.
There is a wealth of information on the internet, and a wealth of people willing to advise financially. A few examples of Financial Professionals include Bankruptcy Attorneys
, Financial Advisors, Wealth Planners and Estate Planning Attorneys. Often, people have huge amounts of debt preventing people to even start into the positive direction to use many of the aforementioned advisors, much less start contributions to a 401k, but luckily, a Bankruptcy Attorney can kick-start you into the direction of debt-free retirement. If retirement is one of your fears, then you can easily get help.
As for me, retirement is less of a fear, and the bear/shark fear is pretty much handled by not taking up surfing or hiking (too far in the woods) as a hobby. Have a spooky Halloween!
About the Author:
About Law Offices of Christine A. Kingston
Consumer protection and bankruptcy lawyers of Law Offices of Christine A. Kingston represent families facing financial difficulties, burdened by debts including taxes, student loans, credit cards, medical bills, law suits, fallen behind on home mortgage payments, or facing auto loans they can no longer afford. The firm has helped clients eliminate student loan debt and helped reduce principal mortgages through the bankruptcy process. The law firm is passionate about helping clients achieve financial freedom from their debts and fights oppressive debt collectors.
For more information please call 714-533-9210 or visit their website http://www.attorneychristine.com/
for a free consultation.