Question

In paragraph form, using 125 words or more, explain why it is important to begin planning for retirement early.

Answer 1

Answer:

It's important that you start developing good savings habits now, so you can maintain them as your income grows. When it comes to retirement planning, it's never too early to start saving. The more you invest and the earlier you start means yourretirement savings will have that much more time and potential to grow. By investing early and staying invested, you may be able to take advantage of compound earnings. Personal planning isimportant because it is the determining factor of your satisfaction with your retirement lifestyle. Financial planning is crucial because it identifies your sources of income and expenses and establishes your retirement budget, based on your personal plan. If you start contributing to a retirement account now, giving it about 40 years to grow, you might even be able to retire early, depending on the type of retirement account you choose, and how much interest you earn on your investment. You get tax breaks on your contributions. Also, If you plan and save enough for enough time, you could retire with a sizable amount of money (a great deal more than those who wait to invest) and never have to worry about finances in your retirement years.