Wednesday, January 17, 2007
We all do it rather it's investing, retirement, or just with work everyday. Or maybe it's even putting off cleaning the house. Well, here is a losing scenerio for you wait until you are 45 or 50 years old to start saving for retirement. This is what we would call retirement procrastination and your going to be having a pretty short retirement. Consider that someone who starts socking away $300 a month at age 45, and earns an average annual return of 8 percent, will have about $178,000 at the age of 65. But if you start saving at 25, you'll have $1,054,000.
Yes, it's true you invest more of your own money ($144,000 versus $72,000) when you start saving at the age of 25, but look at the payoff: you end up with about $875,000 more because you played the time card so well.