Everyone knows that saving for retirement is important. Doing so at early ages certainly has its advantages. The potential impact of compounding interest can play a significant role in increasing your retirement savings. Consider this example assuming an 8% annual rate of return. Saving $2,000 each year beginning at age 25 would result in approximately $560,000 at age 65. If you waited until age 35 to do so, your savings at age 65 would be approximately $245,000. In this example, saving at an earlier age resulted in $315,000 more of assets for retirement.* Simply stated, saving at early ages can play a major role in your future retirement.
What many don’t realize is that proper retirement planning includes much more than just saving. Factors such as inflation, rates of return, retirement income needs, taxes, along with many others also need to be considered. Any planning for the future includes assumptions, which is why it’s important to periodically update your plan. Retirement planning tools, ranging from basic to complex, can be helpful in monitoring your progress. In the coming months, FORUM Private Client Group will be providing a complimentary online retirement planning tool to assist with your situation. If you’re interested in using this resource, periodically visit www.forumpcg.com for its availability.
Because your future retirement is dependent on so many factors, seeking guidance from a professional is something to consider. If you would like tailored advice on how to plan for retirement, contact a financial advisor with FORUM Private Client Group at 317.558.6322 or email@example.com.
*“Retirement planning for 20-somethings”, www.bankrate.com
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Categories: Planning, Retirement