Friday, January 7, 2011

I am 26 years old. Is it too early for retirement planning?

All of my mentors would say NO.

At 26 years old it should be clear what you want in your life - when do you want to get married, how many children you want to have and of course your retirement plans.

Let’s have a little workshop. Get a piece of paper and a pen. Draw a horizontal line on the paper. Place the year of your birth on the left end. Place the approximate year of your death on the other end. (Of course this is just a workshop. Just imagine you'll live until that year.) Then somewhere in between place the year today. And then place a dot at the year you want to retire. Subtract the year today from the year you want to retire. That my friend is the number of years you are allowing yourself to prepare for retirement.

How much you want for retirement depends upon your lifestyle. Nobody will tell you the exact amount. You decide on your own. Remember, the longer time you have to prepare for retirement the lesser the amount you have to save.

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