Investing In Retirement Essay Example | Topics and Well Written Essays - 250 words

Investing In Retirement - Essay Example Compounding interests provide valuable returns at the end. For instance, if we start putting aside $1000 per month starting at the age of 30 it will end up being $453600 for each of us at the age of 65. This is based on the assumption that the rate of return is at 8 percent per annum. If we wait for ten years, we would only save $129000 each. Considering that a small difference in contribution amounts $129600, which is $1000 each month for ten years. However, the actual difference in total saving is enormous and amounts to $259200. Investing wisely is encouraged for it helps in ensuring that the maximum returns are yielded on the amount spent. Thus, lessons learned from retirement savings entails starting early and setting aside at least 10 to 15 percent of the annual salary on retirement. For a worthwhile investments return, it is good to start investing earliest possible. Additionally, it is worth setting aside an average of 10-15 percent of the gross earnings on a monthly basis. From this, I have learned that to save for the future is good because the future is uncertain. The money we save now may be used to cater for our need in future when we have retired and have no other source of income.