Who Cares About The Rule Of 173?
The obstacles to writing a will exist mostly in your mind. The hardest part about writing a will is thinking about how life will go on after you are gone. Once you can let yourself envision a world where the people you love carry on without you, it is easy to think about how you want your property to pass to them, and therefore which legal processes to follow so that things can happen the way you want them to. By contrast, the obstacles to saving for retirement tend to be financial ones. It is easy to be enthusiastic about the idea of saving for retirement, but you have been living paycheck to paycheck for your entire adult life. It is easy for people who already have employer-provided retirement savings accounts to increase their savings, but what should you do if you are starting from zero? Millions of retirees have no income except Social Security, but if you are still in the workforce, it is not a done deal that you will fall into that category when you retire. It is still possible for you to start saving for retirement, and even if the amount you invest is modest, every little bit helps. If you are too old to bother keeping up with the digital Joneses, then you are the perfect age to contact a Tampa estate planning lawyer.
A Thought Experiment for the Rest of Us
If you are barely making ends meet, then you have probably already learned to tune out retirement advice about the three percent rule and the four percent rule. These guidelines assume that you have been consistently saving for retirement since early in your career, and therefore that your retirement savings will last for decades if you are strategic about spending them. It is almost impossible to achieve this unless your employer has been contributing to your retirement savings for years; most people in your generation do not have this luxury.
The rule of 173 is a simpler path to retirement savings, even though the benefits you get from it do not match decades of saving for retirement. The rule states that if you invest one dollar today in a savings account with a compound interest rate of eight percent, then ten years from now, your investment will have grown to $173. Once we set aside the challenges of finding a place to invest a modest amount of money at an eight percent interest rate, it becomes clear that invested funds can grow substantially over just a few years. Even if you are only ten years away from retirement, if you start investing money now, there will be more of it by the time you retire. You might not be rich, but at least you will not be scraping by on Social Security only.
Contact David Toback About Investing What You Can for Retirement
A Central Florida estate planning lawyer can help you build your retirement savings, even if you do not have much money to invest. Contact David Toback in Tampa, Florida to set up a consultation.
Source:
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