With all the focus on how little Americans are saving for retirement, this may sound counterintuitive. However, saving alone won’t get you to your goal. You need to be investing in your future.
Saving is all well and good, but that doesn’t make your money work for you. The interest rates are so low that it is unlikely to appreciate much over time the way an investment would. If you are thinking about having money waiting for you when you retire, then you should be looking for the best ways to grow your retirement fund.
If you can get a 6 percent annual return on your investment, compounding monthly, and you plan to retire at the age of 67, you have to put away just under $320 every month from the age of 20 to get $1 million when you retire. If you wait until you are 35, you have to start squirreling away over $860 every month to do so at the same rate of return.
By using a simple online retirement calculator, you can work out how long it would take you to save
$1 million. Compound interest and time make this possible.
If you were simply taking cash and saving it without any interest or investment, it would take a whopping 190 years to save a million bucks! ] Take a look at what FINRA has to say about the types of investments that are available to you.
No matter what investment you choose, make sure you get all the information you can about the investment you are making. Don’t invest in risky schemes, especially if you are putting away money for your retirement. You don’t want to lose your money. “Make certain you are getting professional advice and seeing what the best plan is for you. Don’t take unnecessary risks with your money, rather look for the sensible middle ground of investing. It’s better to start planning sooner rather than later,” said President of David Lerner Associates, Martin Walcoe,
Investing rather than saving makes more sense because you are getting more money than you are putting in, over time. Thinking about saving is one thing, but if you are just stuffing cash in a mattress or a savings account, you are leaving behind an opportunity that you could be
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