Its never too late

Imagine getting out of high school and being faced with the grim responsibility of having

to get a job. If you’re one of the fortunate, you have the option to continue your education and

postpone the reality of growing up. Now let’s assume you’ve found that so-called dream job,

paying your dues with hard work and late nights, not to mention weekends and holidays. After

twenty to thirty years you’re up for retirement and it sounds inviting. Now most employers offer

a retirement package that allows you to stop working and still bring home seventy percent of your

current income. As stated, “Five Steps to a Great Retirement” (Money Magazine 1999), “No

matter how far you are from retirement, you know that the alternative to work is no longer

napping on the verandah. Back in the days when it was, financial advisers routinely said you

could retire comfortably on seventy percent your working income - figuring you were thirty

percent dead.” So how much money will you need when you retire? In the following pages there

is some helpful information you will need to make the “Golden Years” truly golden.

Education is the single most important tool in planing for your future, the earlier the

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This will give you the amount of years it will take for your money to

double.

Financial advisors report that nearly all retirees need to revise their budgets twelve months after

the quit work what they had anticipated. When these children have children they will instill in their minds the same philosophy,

save money for retirement! One of the most interesting quotes to substantiate this claim comes

form the book The Richest Man in Babylon.

“One strategy used by many financial professionals use to help the average person for

deciding where to put your money to obtain the full earning potential is to use the “Rule of

Seventy Two”. Obviously, no single formula for planning a retirement budget works for everyone. ” (See Diagram Below)

Rule of 72

72 DIVIDED BY THE INVESTMENT DOUBLING PERIOD = INVESTMENT DOUBLING PERIOD

$10,000 ONE TIME INVESTMENT

DOUBLING PERIOD YEARS DOUBLING PERIOD YEARS

6% RETURN 12% RETURN

YR 0 $10,000 YR 0 $ 10,000

YR 12 $ 20,000 YR 6 $ 20,000

YR 24 $ 40,000 YR 12 $ 40,000

YR 36 $ 80,000 YR 18 $ 80,000

YR 24 $ 160,000

YR 30 $ 320,000

YR 36 $ 640,000

DIFFERENCE: $560,000

The article goes on to state that you must make your money work for you. forty four in

1998) of the students had taken a class on saving or investing. Today the Bureau of Labor Statistics says that the more

money you live on while you’re employed, the more you’re likely to spend when you retire. “As part of it’s 1999 “Time to Save Education” campaign, Merrill

Lynch polled 500 boys and girls, ages twelve to seventeen, about how they obtain, save and invest

their money. Sounds

good doesn’t, not if you compare it to the return at twelve percent. ” An allowance should come the same day every week to help kids budget. (See ram)

It is essential that children take these classes. What better way to teach your children then by example.

Approximate Word count = 1853
Approximate Pages = 7 (250 words per page double spaced)

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