Shock Treatment for Prospective Savers
Much has been made of the average American’s less than stellar track record of building savings. In the 6/17-18 issue of the Wall Street Journal, reporter Ron Lieber shared what “shocked” him into saving early in life. He saw a chart comparing how much a person would accumulate by age 65 if they invested $250 a month and earned 8% annually beginning at different ages. Starting at 25, the person would net nearly $880,000. Waiting until age 35 to get started, they’d end up with less than half—$375,000. Procrastinating until 45 drops the figure to just under $150,000.
Matt’s View
This isn’t meant to discourage anyone over 25, or overwhelm anyone who can’t come up with $250 per month. The point is to get in the savings game, and to do so as early as possible. If you’re 45 and haven’t done much in the way of saving, better to start now than when you’re 55. Where will you find the money to save? Check out the next article.
This article filed in: Retirement , Saving
Managing Money by The Book
- "I delight in your decrees; I will not neglect your word." - Psalm 119:16
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