It’s never too early to start saving. And, its never too late either. Even relatively small savings can grow significantIy over time.
For example, $100 a month in savings at 10% accumulates to almost $76,000 in 20 years. Over 40 years, that same $100 balloons to $632,000.
In order to best prepare for the financial component of retirement, financial planner Ann Wolfson of Ann Wolfson Associates asks her clients to “actively imagine the possibilities of retirement.”
Wolfson asks clients to view their working years as years where time was sacrificed for work as opposed to retirement years where she asks clients to see time as theirs entirely. “In retirement, time is yours. Late meetings, missed events, and short vacations are things of the past. Imagine yourself with all the time you did not have control over during your working years. That’s what we’re talking about. What do we want to optimize your finances and investments for? Your time.”
Most people think of retirement as something to deal with later. But what happens when you won’t be going to work every day? Although you may be saving money now, your spending habits are likely based on your paycheck.