Often, when asked if they are currently saving for retirement, people will give answers with comments like, “I can’t afford to save for retirement right now,” or something equivalent. In all actuality, these days, you can’t afford to not take advantage of the many ways that you can save for retirement.
If your employer is offering a means of putting away a portion of your income on a pre-tax basis you would only see your pay reduced by a portion of the amount that you actually invest. For example, if you are in the 25% tax bracket and you invested $100.00 a month, you would only see a reduction of $75.00 a month in your pay check. Also, many employers match a portion of what you invest. When you add this in, a $75.00 reduction a month in your check could immediately be worth as much as $200.00 a month for investing assuming a 100% match. If you were to earn an average of 8%, that $75.00 reduction a month could be worth $117,800 over a twenty year period. Although this is a purely hypothetical example and does not represent the returns of any specific investment, which will fluctuate in value, it demonstrates that you cannot afford to not be investing for the future.
Even if your employer doesn’t provide a retirement plan, you can still establish a plan that will work for you. You should talk with your FinBal® Qualified FSP about using the strategies that will best meet your goals and objectives while adapting to your particular situations and circumstances. They can help you to establish, build and maintain a well balanced plan.
