A very real threat to you retirement is inflation. The costs of goods and services do rise over time. A gallon of milk at today’s price will greatly vary from what one costs 20 years from now. Are you putting off saving for retirement? Inflation is a REAL reason to start now. Let me give you an example. A round of golf with green fee and cart costs $50 in 2016. A round of golf at 2.5% inflation 20 years from now (2036) will cost you $81.93. Delaying saving for retirement affects your future financial self. Each year you delay saving for retirement requires you to save more to meet the higher prices of things in the future. The time to start saving for retirement is NOW. What is holding you back? Do you think you will get to it tomorrow? Next month? Next year? When I have more time? Don’t delay friend. Time and inflation can erode the power of your future dollars.
Suggestion: Start by saving 1% of your annual income for retirement. If your annual income is $80,000 this means setting aside $800 a year. When divided by 12 (months) this is $66 a month. Do you wonder where to invest such a small amount? I recommend http://www.betterment.com You can open an account at this site in less than 15 minutes. You can specify how much you want automatically transferred from your checking account each month. You can choose what day of the month you want it to come out. You can choose how much to invest in stocks and how much to invest in bonds. You can adjust this amount as you please as well. Don’t delay investing for retirement any longer. Start small and then increase your contributions as your budget allows. Those that fail to plan, plan to fail.