Do you really need five reasons to save for retirement? Probably not, but in case you did here are five very good reasons why you should start saving, even if it’s not for retirement, right this second.
1. Time Is Your Friend
Time will smooth out the ups and downs of the stock market and it will, when combined with the power of compounding, means greater and greater returns down the road. At 10% a year, $100 today will become $110 next year, $121 the year after, and $672 in 20 years. The longer you have, the more it will grow.
2. Old Habits Die Hard, So Start An Old Habit Today
Still bite your nails huh? Yeah, me too, that’s why they say old habits die hard so why not start an old habit today by saving for your retirement? In five years it’ll be old hat and in ten you won’t know what to do if you didn’t save a percentage of your pay into a retirement account.
3. Save Now Or You Might Not Be Able To Later
There are income restrictions on Roth IRA contributions and even 401k Contributions, there may come a day when your salary prevents you from making a Roth IRA contribution (the phaseout starts at $99k for 2007) so you should start now before you don’t have any choice whatsoever in the matter.
4. Don’t Put Off Until Tomorrow What You Can Do Today
Did you not open a Roth IRA because you were too busy or were planning on doing it tomorrow? Shush! It takes about five minutes to open up a brokerage account nowadays with the advent of the Internet, so take advantage and just do it. You will put it off and put it off and put it off until, before you know it, you’re pushing 60 and wondering what happened. Open a Roth right now!
5. You Will Regret It If You Don’t
Let guilt be your guide in this one… you know you should be saving, it’s just a matter of overcoming those obstacles you’ve put ahead of yourself. Let guilt be the bulldozer that knocks them all down because it’s very powerful and it only speaks the truth. You don’t want to be 30 and wondering why you didn’t save the last five years, or 40 and wondering why you didn’t save the last fifteen years, and you surely don’t want to be 60 with little in retirement savings wondering when you can actually call it quits. It’s never too early, it’s never too late, because you’ll only get older and you want to retire someday right?