The first best time is in one's early 20's or when one starts work, whichever is sooner. The second best time is now, if you haven't started already.
The benefits of starting earlier are:
- More time to save
- Savings amount can be lower
- Long term care premiums are lower
- Start becoming debt free earlier
- Understand employer retirement savings options
- Market volatility less of an issue
The risks of starting later are:
- Less time to save
- More needs to be saved
- Long term care premiums are higher
- More debt to eliminate
- Not understand employer retirement options
- Market volatility can derail a retirement date
I chose my 20s, due to my dad's encouragement. I'm glad I did. I'm starting my kids when they start working with a Roth IRA accoutn.
This is not financial nor retirement advice. Please consult a professional advisor.
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