Why Should You Start Retirement Planning Now?

Why should you start retirement planning now? The earlier you start your financial planning for retirement, the more you'll have when you retire. Well, I would say one of the biggest mistakes that we have...

Well, I would say one of the biggest mistakes that we have right now is that people don't get started. People may feel they have a long time. If someone is 25 years old, they have another forty years for retirement, until then you know time is their best friend or their worst enemy. So a 25-year-old person may feel that they can wait and that is the biggest mistake. So, one of the biggest mistakes people make is they don't get started. They don't get started as early as possible and the power of compounding is like a snowball effect. Interest on your money keeps building on your original investment like a snowball falling down a hill. The longer the person waits to begin, the more that person is going to need to save, even compared to someone who has started 10 years sooner. It's a frightening eye opener. The rule of thumb is that for every five years you didn't save, you have to double the monthly investing amount to achieve the same sort of retirement income. So the biggest mistake, I feel, is that people don't even have control or they don't even take a step to save just $25 a week. If they would take some money and put it into a savings account, they would be amazed to see how that adds up.

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