You don’t have to be 55 to start thinking about retirement. In fact, if you’ve waited that long, you’re in a bit of a pickle.
While retirement often seems far away if you’re in in your prime working years, you need to make it a priority … now. Because the scary truth is that most people don’t — and that’s how most people end up broke.
Take a guess at how many American workers have less than $10,000 socked away for retirement.
And how many have less than $1,000?
27%. Yes, 27%.
Think about it for a second. $1,000 is literally almost nothing to last on; $10,000 is probably less than a six-month emergency fund for most families.
And that’s scary. Especially because you can’t count on Social Security to provide much, if anything, to you.
Sure, some of it is because of the economy, and people raiding their retirement accounts to keep afloat. But that’s not the entire problem; the number of people who have saved for retirement (like, ever) dropped from 75% last year to 69% this year.
It’s an attitude change as much as it is anything else.
Here’s how you save for retirement:
- Start Now (or as soon as you have paid off all non-mortgage debts)
- Invest in Your Company’s 401k up to the match
- Open a Roth IRA
- Invest only in index funds
- Dollar cost average if you don’t have big chunks of money
- Once a year, re-balance.
P.S. Based on current sales trends, I am heavily considering increasing the price of Automatic Finances from $7 to $17. Soon. So if you’re on the fence but want to save yourself $10, get your copy now.
About the author: Jason is the author of Automatic Finances: 17 Days to Your Financial Freedom, a guide to automated money management. He started investing thanks to a free lunch, and after finding out how he was getting the short end of the stick, he sought out how to do it right. More »