Its never too late
Imagine getting out of high school and being faced with the grim responsibility of havingto get a job. If you're one of the fortunate, you have the option to continue your education andpostpone 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. Aftertwenty to thirty years you're up for retirement and it sounds inviting. Now most employers offera retirement package that allows you to stop working and still bring home seventy percent of yourcurrent income. As stated, "Five Steps to a Great Retirement" (Money Magazine 1999), "Nomatter how far you are from retirement, you know that the alternative to work is no longernapping on the verandah. Back in the days when it was, financial advisers routinely said youcould retire comfortably on seventy percent your working income - figuring you were thirtypercent dead." So how much money will you need when you retire? In the following pages thereis 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
This will give you the amount of years it will take for your money todouble. Financial advisors report that nearly all retirees need to revise their budgets twelve months afterthe 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 comesform the book The Richest Man in Babylon. "One strategy used by many financial professionals use to help the average person fordeciding where to put your money to obtain the full earning potential is to use the "Rule ofSeventy Two". Obviously, no single formula for planning a retirement budget works for everyone. " (See Diagram Below) Rule of 7272 DIVIDED BY THE INVESTMENT DOUBLING PERIOD = INVESTMENT DOUBLING PERIOD $10,000 ONE TIME INVESTMENTDOUBLING PERIOD YEARS DOUBLING PERIOD YEARS 6% RETURN 12% RETURNYR 0 $10,000 YR 0 $ 10,000 YR 12 $ 20,000 YR 6 $ 20,000YR 24 $ 40,000 YR 12 $ 40,000YR 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 in1998) of the students had taken a class on saving or investing. Today the Bureau of Labor Statistics says that the moremoney 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, MerrillLynch polled 500 boys and girls, ages twelve to seventeen, about how they obtain, save and investtheir money. Soundsgood 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.
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