![]() | |
![]() | |
![]() |
Investing Information |
|
![]() |
What Age Should I Start Saving For Retirement?
Ask this question to 100 people and you will receive 100 very different answers. The fact of the matter is there is no right age to start. But don't fret (did I just say fret?) knowledge is power! To borrow a line from Star Wars, "Use the force Luke." The force I'm speaking of is compound interest. Since our main objective is to find an ideal age to begin saving, you have to understand the difference between simple and compound interest. Simple interest can be figured by taking an initial investment that earns interest annually for a period of (let's say) two years. After the first year you have your original investment plus the interest. In the second year you have the initial investment plus the interest for the second year, the interest from the first year is not added. What you're lacking is that you don't earn interest on the interest you already earned. It's not compounded. Can you see where I'm going with this? With compound interest you take that initial investment and earn interest in the first year, then in the second year you add the initial investment plus the interest from the first year and earn interest on the whole amount. Now that you know the difference, let's see how two people use the force! Person A starts saving at the age of 25. They start out with a zero balance and contribute $200 monthly until retirement (65). Assuming an average annual rate of return of 12%, Person A can retire with $2,061,941.74. Wow! Millionaire status achieved, two-fold. Person B starts saving at the age of 40. Because person B is further in life, we'll assume this person started with an initial investment of $10,000 and contributes twice as much, $400 per month, with the same 12% average annual rate of return. Person B will retire at the same age (65) with $886,803.53. Hey, that's not fair! No, that's compound interest at it's finest. J So, what are you waiting for? Put your pizza and cheeseburger money to better use and start saving! Your love handles will thank you for it! About The Author Brian Weiss is owner operator of www.InvestmentRunner.com a specialty search engine with free investors software, spread sheets, investors dictionary, and financial weblog.
MORE RESOURCES: Bitcoin Could Benefit if an Economic Recession Hits, Says Fidelity Investments Macro Analyst – Here’s Why The Daily Hodl 3 Tips for Investors in a Government Shutdown | Investing | U.S. News U.S News & World Report Money Huge News for Nikola Stock Investors The Motley Fool Real Estate Investing: How You Can Profit Now Kiplinger's Personal Finance Why Investors Should Like ETFs The Motley Fool How I stumbled into stock market investing: Money Talks cleveland.com How to Invest in Nu Holdings The Motley Fool Secretary Haaland Visits Colorado to Highlight Work Underway ... US Department of the Interior 6 Best Consumer Discretionary Stocks and ETFs to Buy U.S News & World Report Money Great News for CrowdStrike Stock Investors The Motley Fool Why We Must Invest in AANAPISIs The White House 24 Things I Believe About Investing A Wealth of Common Sense Analysis | What Is ESG Investing and What Financial Risks Does It ... The Washington Post How to Invest in Cava The Motley Fool The Best Stocks to Invest $5,000 in Right Now The Motley Fool Silicon Valley pioneer Vinod Khosla says VCs need to make riskier climate tech investments - Fortune 9 companies investing more in small-business payments ... American Banker China Is Investing Billions in Global Disinformation Campaign, U.S. ... The Wall Street Journal 3 Investing Commandments From Billionaire Bill Ackman Yahoo Finance Investors Should Watch This 1 Troubling Trend for Roblox The Motley Fool A More Impactful Strategy for Sustainable Investing HBR.org Daily 6 of the Best Emerging Market Stocks to Buy U.S News & World Report Money 7 Preferred Stock ETFs to Buy Now | Investing | U.S. News U.S News & World Report Money The Week in impact investing: Dueling Narratives ImpactAlpha The Warning High-Yield Stock Investors Shouldn't Ignore The Motley Fool Biden-Harris Administration announces $80 million through ... National Oceanic and Atmospheric Administration All Learning Counts at Walmart: 5 Ways We're Investing in More ... Walmart Corporate Tesla Deliveries, Government Shutdown And 5 Stocks To Watch ... Investor's Business Daily Biden-Harris Administration invests $3.9 million for Ocean ... National Oceanic and Atmospheric Administration Is Kenvue Stock Too Pricey to Buy? The Motley Fool Biden-Harris Administration invests $6 million in new climate ... National Oceanic and Atmospheric Administration PhonePe's New Stock Broking App Makes Investing Accessible to ... Walmart Corporate Biden-Harris Administration Makes $328 Million Available for ... US Department of the Interior Why we think now is a good time to invest, in 6 charts JP Morgan Private Bank What Intel, Micron, and Qualcomm Stock Investors Should Know ... The Motley Fool Should Investors Buy Lam Research Stock at Current Valuations? The Motley Fool USD/CAD Vulnerable to More Downside | investing.com Investing.com |
![]() |
![]() |
![]() |
RELATED ARTICLES
The Real Cost of a Bad Habit What is the value of a good habit? Think of some daily habits, like brushing your teeth, or buckling a seat belt, or flushing. All of these habits have value important to some part of life. Advice for International Investors on How to Safeguard Their Profits What are the risks?Today, investors are increasingly turning to global markets to find opportunities for profit, giving urgency to the issue of protecting returns from foreign exchange risk. While there are many excellent investment opportunities to be found all over the world, volatility in the currency markets can and does affect the profitability of these investments. How To Start Investing For Financial Independence, Part 1 Today, I am going to start a multi-part series about how to go from being a beginning investor to being "financially independent" in a steady and predictable way. At our website, we get tons of e-mails about how do I start, how do I start with little $'s, etc. The Perfect Mutual Fund The Perfect Mutual Fund is the one you build yourself!The perfect Mutual Fund you build should have the objective of owning no more than 12 to 15 companies; owning shares in 12 companies would allow the diversity needed to sleep well at night and would provide a cash dividend every week of the year.The 12 companies (with staggered dividend payout dates) in yourperfect Mutual Fund should not only provide a cash dividend every week of the year, the companies should also have a historical record of raising their dividends every year for at least the past 8 years (to eliminate risk). Investing In Sons Business Could Cause A Real Family Feud Q: My youngest son wants to borrow $5,000 to start his own business. My wife is afraid to tell him no. Trading For A Living - Part 2 In part 1 of this article I started to look at the financial implications of giving up the day job to instead start trading full time for a living. There are more than just monetary considerations as we will see later, but for now, there are some more costs to ponder. Sell Discipline for Investors: Importance and Execution Investors usually don't have an aversion to buying an asset. The real gut wrenching decision is when - and if - to sell. Critical Options Investing Tip When Trading Naked Calls and Puts An option is a derivative trading product that is best used by investors as a hedging tool providing investing profit protection and profit enhancement. Although it is a powerful risk management tool, it can also be used effectively as a stand-alone trading vehicle. The Arrow-Debreu Contingent Claims Model of Investment Throughout the discussion of speculation and stability, we emphasized that uncertainty theorists now have a generally accepted framework for modeling choice under uncertainty. Economic theorists have chosen to model uncertainty as the revelation of a state of the world. Franchise Opportunity Sellers Beware; franchise buyers lie on forms? It seems completely absurd that franchise buyers lie about their financial position, available cash and abilities in order to buy a franchise. After spending 8 years setting up franchises around the nation and fielding inquiries I am appalled at the lack of integrity of the average business buyer. Retirement is Never Urgent Until If you're like many people, your retirement savings have not been growing consistently over the years. We're not referring to the wild fluctuations in the stock market, but rather the fluctuations in our short-term needs. Porters Five Forces Analysis If you've ever listened to Warren Buffett talk about investing, you've heard him mention the idea of a company's moat. The moat is a simple way of describing a company's competitive advantages. Before You Start Investing There maybe several reasons why you to want to invest your money. You may want to retire early, want to build your own business in the future, or to pay for your kid's education. Investing Pointers for Neophyte Investors If you know next to nothing, how do you go about the business of investing? The first thing you need to know about investing is, how much do you really know? If its' not much, then you will need to read extensively to educate yourself.To become well-informed, you should read up on the basics. Creating a Financial Future - Putting Your Plan Into Action Part 1 This column has previously discussed "picturing the future that we desire", and outlining a plan to achieve it. We mentioned that the plan must include goal-setting, measurement, and implementation. Investing In or Owning Drug Lab Properties Clean Up (includes the insides and the outside of a building)Air out the buildingRemoval of contaminated materials: Carpets, carpet pads, Linoleum, drapes and blinds, air-filters, refrigerators, range, water heater, all tenant clothing and their furniture.Removal needs to be to a site that accepts contaminated product. 5 Ways To Protect Your Bond Portfolio From Rising Interest Rates The Federal Reserve recently raised its target federal funds rate for the first time since March 2000. This could be just the tip of the iceberg, though, as many experts believe rising inflation and a strengthening economy will spur continued rate hikes for the foreseeable future. How to Buy to Let Find out everything you need to know about buy to let. Learn what to buy, where to buy and what not to buy. Planning for Retirement Almost without exception, people don't start planning for their retirement early enough in their lives. Young people leaving High School or College and going into their first paid position find it difficult to look or see ahead to age sixty or sixty-five. Invest To Make Money, Not To Get Rich The technology boom of the '90s romanticized the "rags-to-riches" ideal that all of us dream about when investing. For those that invested $1000 in Dell at $5 during 1990, held through the seven splits, then sold in March 2000 at $59, the dream was a reality. ![]() |
home | site map |
© 2006 |