Social Security kicks in at 62. The age of retirement is getting later and later. And thanks to those babyboomers, our generation can kiss social security goodbye. (Yes, all that money that is taken out of your paycheck will mostlikely never return) Either way, the lesson stands that our fresh-out-of-college generation needs to prepare to be old and grey.
And the start age of 70? Well, we are living longer and not saving as much. If we think this average number will be lower by the time we reach the golden years (or grey years?) I bet we are quite wrong. But 70 is NOT okay with me. At the age of 70 I would like to be on a beach somewhere, hanging out with my grandchildren, going to midday bridge dates with my girlfriends, and walking the mall for cardio. I do NOT want to be going to drycleaners and wearing heels and reporting to work at 8am. No Thank You.
Who cares about 45 years from now!? YOU SHOULD! Saving is not going to get any easier with kids, mortgages, and more adult responsibility. Now is the easiest time to save - before my taste for cheap mac and cheese is diminished. Invest now.
Okay, Okay, but where should I start?
(1) Set up and IRA or Roth IRA - Decide if you want a Roth or traditional IRA, pick your investor, fill out the simple form online, mail it in with a check - DONE.
(2) Talk to your company about a 401(k) Plan - If they have one, decide if you want to take advantage. If they have a matching program, that would be FREE money that you are throwing down the drain. Free money that lowers that "70 years of working" age.
(3) Know you retirement needs - The easiest way to do this is to talk to a financial planner (it is normally free) and have them run the snazzy number in their computer for you. This way you have a goal in mind, instead of just "be rich".
(4) Check out your company's pension plan - If they have one. Be able to keep track of this money and know just how long you need to work for benefits to kick in. (Wouldn't it stink to quit a month before you would earn a pension?)
(5) Don't touch your retirement savings - Many programs have a time when you can pull out money (for a house, or a college education, or after a certain age, or with a penalty). DON'T BE TEMPTED. The power of your retirement fund is time. The more time you let that money sit, the more you earn.
(6) Eat more Easy-Mac-n-Cheese
Awesome post. The key to having a secure future is planning, and patience. Deciding whether or not you'd want to get hospice services could help you decide how much you'll need, for example.
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