Planning for Retirement

Many people just starting out in the workforce might not be thinking about retirement planning just yet, however, the earlier you start planning and saving for retirement the better off you will be.

Even if you start out putting only a few dollars a week into an IRA or 401k it can still make a difference when compounded over forty or fifty years.  The website below allows you to calculate how much you would have when you retire if you put away a certain amount of money each year for retirement.  For example, suppose you start with $500 in your retirement account and put in an additional $4,800 a year (only $400 a month) for 40 years.  At the end of 40 years when you are ready to retire, the money would grow to $806,000 when you earn an annual interest of 6% on the money.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Play around with the calculator and see how much you need to invest each year to have what you think you will need to live on when you retire.

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