Do you want to retire before you hit 70? Do you want to enjoy your life in your golden years?
Yes I realize that those are foolish questions. Nobody wants to get into credit card debt. Nobody wants to work a crappy job. Nobody wants to be left behind while others move on with life. Nobody wants to work a job they don’t really care for past the age of 65. The problem is that when we’re in our 20s, the last thing we ever think about is the idea of getting old.
“Like everyone else who makes the mistake of getting older, I begin each day with coffee and obituaries.” — Bill Cosby
Have you thought about investing your money into a Roth IRA? If you don’t have a pension and you don’t plan ahead, you could be stuck working past the age of 65 if the world doesn’t end. I explained why college students should invest in a Roth IRA already, so today I wanted to go in a different direction.
Should you even care about retirement in your 20s?
Yes I firmly support the idea of taking your retirement income planning seriously as early as you can. I personally opened up my retirement account right after I turned 18. With the power of time and compound interest on your side, you can save enough money to retire at a decent age and not have to worry about working once your body is breaking down on you.
I shared some general retirement planning tips with you guys in the past. At that time I was presented with an interesting question from a reader on the topic of retirement.
Shouldn’t you live life in your 20s? You should live life to the max and try to travel the world as much as you can. That doesn’t mean that you should neglect your retirement. You don’t to put all of your savings into your retirement account. A little bit here and there will add up. When you start making more money in the future, you can put more money towards your retirement income planning.
How can you save for your retirement?
You can sign up for a Roth IRA and start making contributions to your retirement income right now. You can see what options your company offers. You can also open up another private investment account (lifetime annuities) on your own.
There are many indirect ways to save for retirement as well. Some of these methods for retirement income planning include:
- Investing in rental properties.
- Creating a massive savings account.
- Building your stock portfolio.
- Starting your own business that you want to work in your later years.
As you can see, there are many ways that you can plan for your retirement. At the end of the day, this is a reminder for all of you 20-somethings reading this that don’t want to work until you’re 70 years old.
This post was part of the Roth IRA Movement that was launched by Jeff Rose of Good Financial Cents. Retirement income planning won’t be on the top of your mind as a young person trying to figure out which club to hit up this weekend. However, you’ll benefit greatly in the future if you keep your retirement in mind right now.
“You know you’re getting old when the candles cost more than the cake.” — Bob Hope