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Investing early will reap great rewards in Retirement

You've just graduated from college; you've just landed your first job. The money's great. Congratulations!

You are in an enviable position to start planning for your retirement. What? You say? I'm 22 years old why should I plan now?

Well, take it from a baby boomer. Putting money aside now, even just a little bit, will reap great rewards in a few decades.

Want proof? Ok, here are some facts. Most companies do not offer health insurance to their retirees. Currently, health care insurance is one of the most costly expenses that retirees incur. The government program Medicare covers only part of a retirees' health bill. Supplemental health insurance alone can cost a retired couple an average of $330 per month or a total of $200,000 to $400,000, depending on how long you live. Experts estimate that you'll need 12 times your last annual pay to live comfortably throughout your golden years.

If you invest $20 each week on your first job, you'll have $1 million when you reach retirement age. If you wait until you are 35, you'll need to save $100 per week to reach $1 million. If you wait until you are middle aged and you save $5,000 a year, you'll only accumulate $500,000 by retirement that's only half way to the $1 million goal.

Have I convinced you? I hope so. You won't miss the small contribution taken out of your paycheck when you are in your 20s, but you sure will miss it in your retirement.

Learn more about this author, Em Dickinson.
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