Question

The timing of when you start saving for retirement can make all the difference. Investing in retirement at the age of 25 instead of 35 means you could have $700,000 more when it comes time to retire. What steps can you take to make sure you are investing in your future now? What are the consequences if you decide not to start saving for retirement now?

Answer 1

Firstly I will start spending lesser and focus on the savings.These savings should increase as time passes. Secondly I would invest the amount saved into a mix of equity and fixed income securities. The equity investment will ensure that I get high gains while fixed income securities will help me to earn fixed income at low risk.

If I dont save immediately I will lose the opportunity of earning interest over this period. This period will go waste and so will not yield any income. The future value accumulated at the time of retirement will also be lesser.