Lynn Financial is Sioux Fall’s retirement planner and financial consultant of choice, giving you the tools you need for financial stability and success in the present, and strategies that can potentially improve your financial standing in the future. But in terms of the present and the future, which holds more importance for your financial success? It turns out that the actions you make in the present determine your financial success in the future—which is why saving money now is critical for your financial standing when retirement comes around. In this blog, we’ll cover a few reasons why saving for your retirement sooner rather than later is so important to your financial success.
You’ll avoid procrastinating.
Everyone has a list of two dozen things they’ve been meaning to get around to for years, but haven’t tackled yet. Maybe it’s reading that old book that’s been sitting on your bookshelf, taking that fun international trip, or cleaning out your messy garage. But what if saving for retirement is still on life’s to-do list?
Putting off saving for retirement isn’t like putting off an oil change—every year you procrastinate, you’re losing out on retirement income potential. So why not take care of it today, and have peace of mind knowing that your retirement is taken care of?
By making time, you’ll make money.
Think of it this way: according to JP Morgan, investing $5,000 per year from age 25 to 35 will net you $602,070 by age 65 (if you have a 7 percent annual return). If you save $5,000 per year from age 35 to 65 with a 7 percent annual return, you’ll only net $540,741. That’s an incredible income difference, considering the younger investor spent 20 fewer years investing money.
This is the beauty of compounded interest. By saving money early on and allowing time to work its magic, you’ll earn interest off of your interest. The longer the interest builds, the more money you’ll have when retirement comes around.
Ideally, the time to start saving is when you’ve graduated college and have picked up your first full-time job. While you might have some student loans and rent to pay, you can still stow some money away for your retirement and still feel like you’re upgrading from your shoestring collegiate lifestyle. But while it’s never too early to start saving, it’s also never too late—so even if your college days were decades ago, there’s still time to build some savings for your future retirement endeavors.
You’ll reach retirement sooner.
If this doesn’t convince you to start saving today, we don’t know what will. Saving early means you’ll have more money as you reach retirement age, so depending on the retirement lifestyle you want to live, you’ll be able to retire comfortably at a younger age and enjoy everything the retirement world has to offer. Instead of slogging through the final years of your career, you’ll have the funds and the time to take those international trips, make it to life events like weddings, births, and important kid (or grandkid) milestones, and enjoy anything else that you see fit for your free time. This kind of flexibility is only possible if you have the right financial strategy early on, so the sooner you start saving and strategizing, the better.
That’s where Lynn Financial can help. Christina Lynn is the only certified Slott IRA expert in South Dakota, with the tools and professional knowledge to help you properly plan for your retirement—whether it’s five years or five decades down the road. Schedule your free consultation with Lynn Financial today!