Why is Saving Early Important

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Why is Saving Early Important?

• By Jim Tompkins

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Thinking of Retiring?
These things will NOT support you once you retire

• Your Children
• Your Current Savings Account
• Social Security

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Why Your Children Wont Be Able to Support You

• They will have lives/families of their own to
  support by that time
• Cannot count on them as they counted on you in
  the past
• Unplanned catastrophes could occur

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Normal Savings Accounts

• Will not collect enough interest to support
• Roth IRAs/CDs are better alternatives
• Accounts will only collect a low interest rate

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Why Social Security Wont Cut It

• Once the Baby Boom era is finished collecting
  Social Security, there are worries that there
  will be a severe lack of funds.
• By 2030, there will be only 2 workers per
  beneficiary.

Plan your retirement at
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Possible Scenario

• Just graduated college in 4 years
• Get first job the following winter at the age of
  22.
• Average starting salary for Management Analysts
  is approx. 65,000
• Great starting salary, but it is still essential
  to start saving as early as possible

Check out your average salary
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Figures
If I save for 40 years, I will have enough to
retire on.
I need 2,210,000 to retire and live comfortably.
This is only 2.5 of my future salary
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Waiting 10 Years
After 10 years of not saving, I am forced to save
approximately 7 of my salary.
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Thinking Youve Waited Too Long?
Heres some proof
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Chart
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Saving Early is a Must

• Gives person more time to save the amount of
  money needed
• Person can make smaller payments than if saving
  is started late