If you’ve ever wondered when you should start investing for retirement, you’re not alone. A recent survey by The Fed has found that almost a third of Americans have no savings for retirement yet.
However, just because many Americans have put off investing for retirement, it doesn’t mean you should too. The truth is that the earlier you start preparing for retirement, the easier it will be. For instance, if you wanted to save a million dollars for retirement, it would be far easier to start in your twenties instead of later in life. A 25-year-old, for instance, would only have to save $381 a month to reach $1 million in savings by age 65. Whereas a 55-year-old would need to save almost 15 times that amount every month — $5,778 — to accomplish the same thing (with a compounded rate of return of 7%).
The power of compound interest truly highlights the need to start investing for retirement early. By developing a financial road map early in life, you can take small steps now instead of taking larger steps later in life.
How to start investing for retirement
No matter your age, you can make retirement planning easier by creating a plan as soon as possible. If you don’t have a financial plan in place and you want to create one, seek a trustworthy and knowledgeable financial advisor. At LexION Capital, we are fiduciary advisors who will be on your side no matter what. We can help develop a unique, bespoke plan to guide you towards a comfortable retirement.