The Potential Impact of Saving for Retirement When You're Young

Retirement?  Am I crazy?  You're young! You're at the beginning of your career, not the end! Why on earth am I boring you with something as far away as retirement?  

I'll tell you why.  Saving small amounts now could make a major impact in your retirement options in the future.  Don't believe me?  Let's take a look:

What would happen if we saved $200 a month starting at the following ages assuming an 8% return, and we retired at 67?  

 This is a hypothetical example and is not representative of any specific situation.  Your results will vary.  The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.  

This is a hypothetical example and is not representative of any specific situation.  Your results will vary.  The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.  

Now let's say you contribute $450 a month, the maximum allowed contribution to a Roth IRA, every year until you turn 67, what might that do? 

 This is a hypothetical example and is not representative of any specific situation.  Your results will vary.  The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.  

This is a hypothetical example and is not representative of any specific situation.  Your results will vary.  The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.  

Hard to believe?  Check it out for yourself using this Investment Calculator.  Make sure you also take a peek at how much you would contribute compared to how much your investment could grow.  

At Custer Financial Advisors, one of our core values is encouraging people to leverage the power of small changes over time.  Starting to save for retirement early is one of those small changes that could have an enormous impact on your future self.  There are a variety of simple ways you can get started with retirement savings.  Talk with an advisor today to learn more.  

Stephanie Vail

About the Author

Stephanie Vail is a member of the Custer Financial Advisors team.  She specializes in helping millennials with financial literacy and planning.  To learn more about Stephanie and Custer Financial Advisors, visit www.CusterFinancialAdvisors.Com or email Stephanie at SVail@lpl.com.