Retirement Financial Planning
Posted By tsauthor on March 9, 2010
Frankly, this is an easy issue. There are several causes why you should not be planning and investments for retirement in the twenties. And all the causes why you should not be more, you have to work very hard to change. Here are the important causes why you should not invest for retirement yet. At first, you are unemployed. If you are unemployed, you can not open a 401K, or IRA, and you will have no money to contribute to any investment account. Second, paying off huge amount of debts. It’s hard to, except one, because even those who have student loans to pay off the need to invest for retirement, because student debts are generally very low interest rate.
If you have a full-time work, you should speak with the employer to establish a pension plan. You do not need to check half for retirement. You can even add only 5%, and you would make progress. In fact, the addition of 5% of your income is not actually that much, because you do not have to pay taxes on money that you put in a 401K right now. You pay when you withdraw money.
If you went to college, and you have full-time work in your field of interest, you probably do a fairly good salary. If you live by yourself and have a good salary, there is absolutely no reason why you should not invest. If you can not afford it, you live far above your needs. Consider the possibility of obtaining a cheaper place to live and living on less. You also want to be saving at home, the Emergency Fund, the future of the family, etc.
If you never went to college and you live on very low wages and barely make ends meet, you need to think about where you are in your life. If you can not afford to save for retirement, you are not going in the right direction. You should consider going back to school, get training for better jobs, or find another way to earn more money for better jobs. Since you are young, you have a great opportunity for a better life.
If you already have a family, it may seem impossible to invest for retirement. First of all, make sure you invest in a pension fund to the college your child. They can always take credit when it times to go to college and pay them later. After retirement, you can not borrow to survive. You do not want to work until you die. If you started very young family, and you and your spouse are having problems, look in the future and your education and your spouse, and then get a good job. Take a look at any assistance you can get.
In the end, if you are in huge debt, especially credit card debt, you need to focus on getting rid of it within the next 2 to 5 years at least. Once you have paid every debt, including a student or a mortgage, then you can start investing and planning.
No matter if you are a teenager or well over 40 years, any moment of your life is good to think about financial planning.
BTW, financial planning is not dull, it is not an obligation. And those people who started to think and act about their financial planning are very likely to be well prepared for the future.
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Josette Mandela, MBA, MSIE and author of 
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