Establish a Retirement Plan
This week, you can
• Learn the basics of saving for retirement
• Know your contribution limits
WHEN YOU’RE IN YOUR EARLY TWENTIES, building a nest egg is as much of a priority as, say, learning Turkish. It’s only when we see the value of compound interest that we start to appreciate the value of saving money early in life. Do you want, for example, to have a cool $1 million in the bank by the time you’re sixty-five? If you don’t start investing until age fifty, assuming an 8 percent rate of return, you have to sock away $2,889.85 each month to reach your goal in fifteen years. However, if you began saving at the age of ten, you would need to save only $84.10 each month to be a millionaire by age sixty-five. ...