Start Saving For Retirement Now

Article Written By: Jonah Edanomel

You need to take seriously saving for retirement. What do you have on your to do list today? Finish that report that is due; go to the gym; stop by the market for items you need for dinner? Well, you should have retirement planning on your list everyday.

For instance if you save five thousand dollars a year starting when you are 25 years old, you will have 1.3 million dollars in your retirement account by the time you are 65, but if you start at age 45 with the same amount of annual savings, you will have $225 thousand dollars. If you save five thousand dollars a year starting at age 45, then when you turn 65, you will have $225 thousand dollars in your account. But if you begin at age 25 with the same savings plan, you will have 1.3 million dollars in your account at age 65. The point is to start saving as early as possible no matter your age. These numbers were based on an eight percent rate of return.

Social security is now paying out in benefits each year more than it is taking in revenue. You need to take control of your retirement plans and not leave your financial future in the hands of the government. Many do not understand that the original plan for social security was to supplement people's retirement income, it was not meant to be people's only retirement income.

If you have a retirement plan at your job like a 401k make sure you are contributing the maximum from your paycheck. Your employer will match the amount you have taken from your pay. You cannot get a better deal than this anywhere. You can now transfer funds from your regular IRA to your Roth IRA which has many more tax advantages. If you are self employed and do not yet have an IRA, the sooner you start one the more you will have in your account when you retire. Choose the Roth IRA which has flexibility and tax advantages.

Many do not see their house as a retirement asset. But if you own your home mortgage free, you have many advantages you can use in retirement.

Of course from a practical side, you will always have a home to live. You will also be able to see you house and transition to a smaller place and live off the equity you earned on the sale. You can arrange a reverse mortgage which will bring in a steady monthly income. If you have not paid off your mortgage make this a priority so you will have these options available at your retirement.

Consider investing in real estate. More millionaires have made their fortunes in the real estate market than any other form of investment. If you work full time, you can spend time on weekends looking at properties and making deals on your time off from work.

Have a goal of obtaining ten properties that you will rent out. When you have built up equity in the real estate, sell half of the houses then take the equity you earned and pay the other five mortgages off.

However, you plan for retirement, start it now.

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