You may think I’m crazy for saying this but you should start to think about retirement in your 20s. Weird, I know. Most people in their 20s are just getting started or searching for their career job. On top of that, they may have student loans and/or credit card debt that takes priority over retirement savings. That approach is probably fine in most situations but it doesn’t mean you can’t start planning for the future. Most people don’t realize how much they will actually need to save in order to fund their desired lifestyle in retirement. I’m going to provide you with a few different scenarios that illustrate this... if you retire when you’re 65 years old and wish to spend $40k a year on living expenses (4% withdrawal rate that experts recommend for a 30+ year retirement), you should have saved up at least $1 MILLION dollars before you retire. That is a lot of money but completely doable if you make saving a priority. Many variables come into play like taxes and social security integration but for the sake of this post, I’m going to exclude those things. Let’s say that you begin saving toward that goal at age 25, assuming a 8% return on your investments, you will need to save $325 a month. If you wait until you’re 35 to begin saving for that retirement goal, you will need to save $750 a month. If you wait until age 45, you will need to save $1,800 a month. The numbers only get worse from there. Compounding interest favors the young. For those of you who are on the sideline and want to get involved, there is a ton of information to process at first. Knowing what type of account and what funds to select can be extremely confusing. In the upcoming weeks, I will try to dive in more to those topics. If you have any questions about any of this, please feel free to message me!