To Retire Rich, Save and Invest Early

If you want to retire rich, start saving investing early. The most powerful tool when it comes to retiring rich, is compounding your returns on money saved when you are young. Through the power of compound interest, cash invested today has a massive impact on your wealth level when you retire.

Look at it this way, assuming a retirement age of 65 and an annual compounded rate of return of 10%.

* Bob is 40 years old and invests $20,000 a year for retirement.

* Jenny is 21 years old and invests $5,000 a year for retirement.

By the time they retire, Bob will have invested $400,000 and Jenny $220,000 respectively. But because of the power of compound interest, Bob will retire with half as much money as Jenny, despite investing twice as much!

* Bob would retire with $1.97 million

* Jenny would with $3.26 million

So, what's the moral of the story?

Stop robbing your future retirement income to pay for luxuries today.

Maximize your annual contribution to your IRA

When it comes to your IRA contribution limits, Uncle Sam's motto seems to be "use it or lose it". Workers that don't make the maximum allowable contribution to their Traditional or Roth IRA by the cut-off date, are plain out of luck unless they are in their mid-fifties and qualify for catch-up contributions.

Take advantage of your employer matching funds

Many companies will match up to fifty-percent of the contributions employees make to their 401k and other retirement accounts. If your boss will match your contributions, take full advantage of it, as it is money for nothing... literally free money!

Don't take your retirement cash out when you change jobs

The average American worker will change jobs several times in their career. When this occurs, the most foolish thing you could possibly do is to cash out of your retirement plan. What you should do is roll over the proceeds into an IRA or your new employer's 401k plan. Besides avoiding significant tax penalties, you will be able to keep your money working for you tax-free.

Avoid IRA withdrawal fees

There are numerous ways to withdraw money from your retirement account in the event of an emergency. However, before you even think about doing so, make absolutely certain that you have done everything required to qualify, otherwise, you will get a quite a shock when you are hit with what could be thousands of dollars in fees and penalties.

Expand the Pie

Don't just cut expenses - find a way to make more money! Get part-time work, or turn your hobby into a business enterprise. You should create additional streams of income to help fund your retirement. Often this is an excellent alternative to cutting costs and scrimping, because it allows you to maintain your current standard of living, while providing for your future retirement.

*******************************************************************************
Russell Savige is the owner of DX Currency Trades a website detailing investment plans, online currency trading and building personal wealth.
*******************************************************************************

---

Making Your Investment Dollars Work for You

Investments are scary for some people, especially those who have never invested before. We grow up hearing horror stories about how this person or that person lost... Read More

Keeping It Interesting

Some lines from a movie never leave your mind; I don't remember the context always, but I do recall the dialog. "The Big Chill" is one of... Read More

What My Horse Had For Breakfast

Let's see, he had some oats, fresh alfalfa and his vitamins. I know from the mixture that is great food and he will win the seventh race... Read More

Use this Simple Trick its to Buy $100 Bills Direct from your Bank for only $97

Most People just don't understand the power of using their home as a Wealth Creation Tool. How many people do you know who have lived in the... Read More

Investing and the Fear of Regret and Greed

People tend to feel sorrow and grief after having made an error in judgement.Investors deciding whether to sell or buy a security are typically emotionally affected by... Read More

Eight Questions to Ask Your Financial Advisor

You may like your financial advisor, but is he really looking out for you? All advisors are not created equal, and you have a right to know... Read More

Can Your Annuity Do This?

Okay, so I can tell you I have sat in front of countless numbers of people who have made mistakes when purchasing and owning annuities. And I... Read More

How Eating Bitumen Made Me a Better Stock Trader

Stock market trading is a fascinating activity.There are so many layers to it. And so many paths that you can go down.Soon after we first got interested... Read More

Diversify!

The best way to avoid being hit hard by a stock market crash or another Enron/Worldcom fiasco is to make sure you don't put all your eggs... Read More

Is Your Mutual Fund the Right One for You?

Mutual Funds are considered to be one of the best investments one can get hands on. They're very flexible and cost-effective. An excellent investment for people with... Read More

Why Do You Want to Become a Online Trader?

Motivational guru Tony Robbins teaches that the reason for doing something rates much higher than the methods you use to get the job done. In order to... Read More

Secret Stock Options Trading Strategies the Experts Don`t Want You to Know

To understand stock options, we need to look at Webster’s Dictionary’s definition of the word strategy.Webster’s Dictionary defines the term strategy as1. a) the science of planning... Read More

Issuing Warrants to Investors

When raising capital for a business venture, warrants are a common form of equity that is given to investors. A warrant is like an option ? it... Read More

Trading Commodity Futures Using Support and Resistance - Paper Trading

Setting Up a Paper Trading AccountQuestion: I cannot trade with "real money" as yet; however, how do I go about setting up a paper trade account?Answer: You... Read More

Stock Market Retirement Investment Plan

For a successful retirement investment plan to work in the stock market, some 'reasonably sure' assumptions would have to be made:The retirement investment plan must take into... Read More