When should you start your retirement planning? Well, if you are smart, you will begin retirement planning on the first day of your very first job. Why, you might ask? You may plan to work for 40 or more years and think that there’s plenty of time for retirement planning somewhere down the road.
Actually the sooner you start your retirement plan and start to contribute to that plan, the better off you will be. By starting your retirement investments early in life, you will have the opportunity to accumulate a sizable retirement account by the time you are in your 50’s and 60’s and will not have to make extreme sacrifices in the later years of your working life in order to build up your account. We have many more Retirement Planning Help Articles Now Available.
Upon beginning your first day of employment, you should sign up for your employer’s 401(k) account if they have one. Contribute at least enough to capture your employer’s match if they have one. If your employer does not provide a 401(k) account, then you should make plans to set up an IRA account and donate to it on a regular basis. Every year, upon receiving your annual raise, raise the contribution to your account by 1%. Your ultimate goal should be to contribute 15% of your gross pay to your retirement account.
Early in your career, you can afford to take more risks with your retirement investments. So, don’t be afraid to load up on stocks early on. Monitor your investment mix on a regular basis and adjust it to a more conservative mix as you get closer to your retirement age.
Beginning your retirement investing at an early age will allow you to take advantage of compound interest and reinvestment of stock dividends. It will be in your best interest to begin early on instead of waiting until later life when you have other priorities. We have many more Retirement Planning Help Articles Now Available.