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Easy Retirement Planning (Audio, eBook & Video Versions)

Easy Retirement Planning (Audio, eBook & Video Versions)

Saving for Retirement at 20
Are you around twenty years of age?  If you are, retirement may be the last thing on your mind.  With that said, it should be at least towards the forefront.  Why? 
Because the amount of money that you are able to save throughout your lifetime can have a significant impact on your future, the amount of money you have, and how you live until you die.  Do you really want to be homeless or living with family when you should be able to support yourself?
One mistake that many men and women make around the age of twenty is assuming that they have more time to save for retirement.  Yes, you do.  You have into your 30s, 40s, 50s, and possibly even into a part of your 60s.  With that said, there are no guarantees that you will be able to save money in that time frame. 
You have a job now, but will you five or ten years from now?  There are too many what ifs that could result in you not having enough money to retire.  That is why you are urged to start saving for retirement now, when you know you can.
Okay, you now know that you should start saving for retirement now, even if you are only 21 or 28 years old.  You may, however, be wondering what steps you should take.  First, you need to meet with human resource workers from your workplace.  These individuals are knowledgeable on retirement plans that are operated by or through your company.  One of those being the 401(k) program. 
Your company may also have a pension program that you can participate in as well. 
When meeting with a company representative to inquire about retirement savings through your company, ask about matching.  Most companies will match contributions made by their employees.  There may, however, be some rules and restrictions concerning this match.  For instance, you may have to contribute a specific dollar amount or percentage of your income.  Speaking of which, most financial advisors recommend that those in their 20s put around 5% to 7% of their yearly income into a 401(k).
In addition to 401(k) s, those in their twenties are also encouraged to look into Individual Retirement Accounts (IRAs).  Although you will find some disputes online, many financial advisors suggest that Roth IRAs are best for those who are young in age.  The only downside to Roth IRAs is that they money is not tax free when you deposit it into your account.  It is, however, tax free when you retire, as long as you followed all rules and guidelines, such as not borrowing from your account early.
Another great way for you and others in their twenties to save money for retirement is to look at your spending habits.  Most twenty year olds are known for their not so careful spending.  Do you have extra money each week that you blow on new clothes or snacks that you don’t really need?  If you do, consider depositing that money into a savings account.  Even if you only deposit $5 into your account a week, the money can significantly add up overtime.  In fact, why not use a calculator to determine how much that $5 a week can turn into overtime.  Don’t forget that you can benefit from interest rates.
Saving for retirement early is a great way to make sure that you are set for life. 
The earlier that you start saving money, the more money you are likely to have in the end.  With that said, there are risks.  Due to young age, more individuals like you are likely to tap into their retirement savings.  This is can be a risky and costly move.  Remember that your retirement is important and that money shouldn’t be used for a new expensive outfit or a trip overseas, especially one that you do not need to survive.  Aside from depositing money into your accounts, it is best to just forget about them.
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