Monday, April 14, 2014

Are You Too Young for Retirement Planning?

When I was in my twenties, retirement was the furthest thing from my mind.  While my husband and I had a few investments and bought our first home, we only had a vague idea about creating a long range plan.  In addition, we made several poor investment decisions at that stage of our lives which we might have avoided if we had been given the right information.  Getting our advice from other people in their twenties was not the best decision.

Our behavior back then is still common today.  Most young people do not put a lot of thought into what they will be doing in another 40 years.  It just doesn't seem real to them.

Unfortunately, when young adults wait too long to start their retirement planning, it will be very difficult for them to make up for lost time.  The advantages of techniques like compounding and dollar cost averaging are more effective when investors start at a young age.

As a result, when one of our daughters graduated from college a decade ago, we gave her the Suze Orman book which is available on Amazon at "The Money Book for the Young, Fabulous & Broke."

She liked the book so much that she purchased another copy of it to give to one of our other daughters.  Both of them continue to refer to the book frequently.

You can learn more about this book from the review I recently wrote on Squidoo: 

http://books.squidoo.com/review-the-money-book-for-the-young-fabulous-broke

One of the beauties of this book is that it provides far more information than simply helping young adults make good investment decisions.  It also helps them understand their credit score and gives them tips on making major financial decisions such as buying their first home and car.

While some of the information in the book may not seem directly related to retirement, any time we make a bad investment decision we are affecting our future ability to have a successful retirement.

Whether you are a young adult yourself or you are related to one, you may want to get a copy of this book.  No adult is too young to start planning for retirement!

If you are starting to think about retirement, you will also want to use the tabs at the top of this blog to find links to hundreds of other helpful articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  www.morguefile.com


2 comments:

  1. I watch Suze's show every Saturday. I love listening to people call in and ask her if they can afford something they want to buy, and how she walks them through the thinking process of determining if it's a wise investment considering their finances. It's amazing how many people are willing to go into serious debt or dig into their retirement to buy a new "toy". I haven't read the book but it's got to be great.

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  2. Nobody is too young to start planning for retirement. In our opinion, you should start the day of your first job, especially if you have a job where they match any amount of your investment.

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